online marketing psychology

December 26, 2010

The basics of a loyalty program

I've always associated loyalty cards with my mom. Her fist-thick wallet full of cards from every possible shop.

But I have also joined loyalty programs. And with many of them it is hard to see direct rewards from joining such programs.

A supermarket in Rio de Janeiro, Zona Sul, convinced me to get a card just after two visits.

How did they do that?

By showing the immediate benefits that their card would give me. 

A lot of products had two prices: one with the card and one without it.

A bottle of fresh orange juice for example costs 5.99 reals without the card and 4.99 with it. That's almost a 16% discount.

Most products only had one price. But a lot of fresh and a bit more luxurious products like orange juice and cakes and pies had these double prices.

So if you are going to organize a special program, make sure there is an immediate benefit.

And make sure your customers know it. Because many times it is difficult to see how all the points and rewards are tied together.

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