If you own a retail business, you have probably been approached by several sales representatives trying to sell you a Gift Card or Loyalty Card Program. Whether it’s an independent office, a standalone Gift Card Provider, or your current credit card processor, it’s probably happened at least once to you.
Moreover, you were probably really interested in adding this kind of program, because many of the benefits are really transparent, and it’s an easy way to build your brand. But, they probably told you how much it would cost you, and you found it hard to pull the trigger because you weren’t sure that this kind of program would increase your revenue enough to justify the cost, right?
Gift and Loyalty Programs are Incredibly Effective
The benefits of gift and loyalty programs are so powerful. If you make a few assumptions, the validity of which have been shown over and over again in independent studies, and crunch some numbers, it’s really easy to see how a gift or loyalty program will pay for itself and more every single month
Increase your average transaction size, get customers to come in more often, reduce attrition and “lost opportunities” associated with your customers not shopping as often. Loyalty customers spend about 20% more than there counterparts, and their average transaction size is 15%-20% higher. Also, people are 70% more likely to tell their friends about your business if they are loyalty customers. It’s not hard to see how utilizing a program like this will increase revenue and build your brand.