Understanding the Fintech Behind Loyalty Reward
- 6 October 2017 | 200 Views | By Mint2Save
There are various kinds of marketing strategies by which client retention can be done in order to excel in business. Loyalty Reward programs are one such marketing strategy which is well maintained and specially designed by the merchants so that the customers and the clients continue to shop and use the best services which are provided by the companies which would ultimately help in the financial growth of the companies as well as the businesses. In reality, it helps the businesses to retain their existing customers as well as lure the new ones by their attractive prices and deals which would in a way be beneficial to both the parties. The former would gain financial profit and the latter would enjoy the various kinds of benefits of the services provided by the company. Almost all the companies have these programs to attract the new customers and to retain the existing ones to continue getting more and more businesses. The difference between the companies lies in the varieties of features and reward schemes for customers and clients.
There are various kinds of cards like loyalty card, rewards card, point card and advantage card which are required for the identification of the card holder in the loyalty reward programs. Loyalty cards are of two kinds- physical and digital. Both kinds of loyalty cards are connected to the loyalty business model. All types of loyalty card possess magstripe or barcode which can be scanned and the number of loyalty points can be easily calculated. Small key ring cards are easily accessible and is convenient to carry. These loyalty cards are so significant to each and every customer that if any customer or a client possesses a card then he or she is liable to a lot of attractive benefits. If a buyer typically presents a loyalty card then he or she has the full right to earn a discount if he or she buy any product or avails any service from the company. It also helps for the procedure of the allotment of the points for future purchases. There is a very simple procedure by which the card can be procured from the company.
Application forms are readily available from the company in which the details of the customer and the client has to be filled in. In that form, some terms and conditions are mentioned which must be agreed by the customer and the client and signed thereafter. All the information about the client and the customer are absolutely private. The privacy protection is there for the avoidance of any kind of fraudulent activities and to safe guard the card from getting hacked. The aggregate data entered in the card is at times used by the company or the store for internal or external purpose as a part of its research which is conducted solely for the marketing purpose. Now, there is a very common question which can arise in any customer’s mind. The question is that what kind of data can the card bring out and the second question is that how is it helpful to the company or the store while conducting the marketing research.
These two questions are really very helpful indeed in order to procure an in depth idea about the loyalty card or the loyalty reward programs conducted by the company or the store. In the loyalty cards, each and every transaction is recorded in a minute detailed fashion so that none of the customers can file complaint of any sort. What happens is that the company or the store simply scans through the code of the card. After that the minute details of each and every transaction is revealed in a synchronised order. The company can easily skim through it and get an idea about your favourite product or favourite brand. Now, there is a question. How can the company or the store know which one is the favourite of the customer or the client ? It is indeed a good question. If you like or follow a particular brand or use a particular product, it is evident that you would buy it more often and that would be revealed in the detailed list of the transactions you have made from the store or the company. So, once the company or the store skims through the list of transactions, it will be very clear to them that what is the choice of a single customer. After that they would check through all the detailed transactions of all the customers and the clients. Then, the sort out will start off.
They will point out the common brand or product which is bought by most of the customers or the sale of which is the maximum. Now, the company or the store will take a decision and create some exciting and attractive offers for the customers so that the sales of those products or brands or services are excelled to a new height. In this way, the profit of the company or the store would increase day by day. If they put up some lucrative offers for the favourite brands or products or services of their new and existing customers, then, each and every customer and client would turn up to that particular store to buy their favourite item and would never ever think of any alternative store for it. As they are buying their favourite products, they are also entitled to gain some reward points in their loyalty cards. If they accumulate those reward points, they can encash it or use it for buying a product of their choice. So, at that point of time, even if they do not carry fair amount of cash to buy the product, it would not be an issue. They can easily avail their favourite product or service by the usage of the accumulated reward points.
So, in this way, loyalty programs are the best methods to retain customers as well as to increase the database of the customers. Isn’t it great to possess such a card ? Yes, it is. Happy shopping!!!