Customer loyalty cards started with grocery stores and then spread like wildfire. Now, small plastic tags from gas stations, grocery stores, drug stores and discount supercenters are competing for space on key chains and wallets. Why are customer loyalty cards so popular?

The convenience of these cards and the savings they offer to customers aren't the only valuable aspects of a customer loyalty program. Offering discounts on popular food items and merchandise to card-carrying customers not only encourage store loyalty and higher profits, but also provide a wealth of customer purchasing information that can be invaluable in shaping future strategies. Organizing an efficient customer loyalty or membership card program draws in more customers to your store, and also helps you make more informed choices about what products to stock.

Creating a Club Card Program

When starting a loyalty card program, consider the following questions:

• Who will use the loyalty card and why should they?
• What benefits will the card offer to the cardholder and the store? What obligations, if any, do cardholders have? Will the issuer have any obligations to the cardholder?
• When and where will the card be used?
• How will the card be used?
• How will the card be issued?

Depending on the complexity of the club card program in question, there may or may not be other issues to address, including the rights and responsibilities of card holders and the card issuer, any restrictions on card use, and any rewards that cardholders may accrue.

Loyalty Card Design

Because of the increase in membership cards and loyalty cards in recent years, it is important that a customer loyalty card has a design that is attractive and unique. A well-designed customer loyalty card can stand out, even on a keychain amidst a wreath of other card tags. See our how-to section on card design for more information on how to make your cards pop.