You have a pocket full of them. So do I. Loyalty cards. But in all honesty, a loyalty card does not make you loyal to the company, it often only makes you more loyal to your wallet. After all, the reason you got the loyalty card was because it would give you a discount on your purchases. And that is most peoples only motivation for using it. As a matter of fact, if loyalty card holders can get the product they want anywhere else for less money, they will.
So, loyalty cards are useless, right? Well, not entirely. You cannot argue with the fact that more repeat sales are made and that if the discount stays below the extra income generated, that it works for you. And they are great for something else. They can be great for generating new business.
Yes, loyalty cards can generate new business. But not how you think they would. Loyalty cards can bring you new business from your biggest competitors. Find out what competitors have loyalty programs and then offer their loyalty card holders a bonus at your store. Don’t make their visit about money. They need to come to get your expertise, a free service, something that makes them feel that you are the premium store for them. That will make their day. It will also make them remember your store. And they might just be tempted to ditch the loyalty card, because your loyalty to them is bigger than the discount they get anywhere else.