Are loyalty programs worth it?

Published: 18-11-2020

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Customer loyalty programs come with applications on your smartphone or physical cards (you probably have some in your wallet). Have you ever wondered if it is really worth it? Find out whether it is beneficial for you or not.


How does it work?

Most companies ask you to download an application and disclose some of your personal information to them. Other companies still prefer old-fashioned plastic cards. Customers fill in an application form and receive a loyalty card, which is valid on purchases made at participating locations.

In the most popular customer loyalty programs, you are asked to provide details such as name, address, contact information, etc. The main idea is that you consent to direct marketing and the company offers you certain benefits (including discounts, special conditions, etc.). However, many people wonder if it is worth their time and money.


Special offers

Most of the companies that have decided to create a customer loyalty program provide you with many advantages, such as special prices for many goods, faster and easier access to promotional schemes or attractive discount offers. It helps the companies to build a long-term relationship with their customers: exclusive offers make you think you are special and, in some way, you are. It is a really smart way to get people to sign up, especially when the benefits are tangible. And also, the customers feel that they are getting something valuable in return.


Paying attention to detail

Many companies offer special discounts when you spend money in their stores, which helps to build stronger customer relationships. How? Suppose you can buy a T-shirt at Store A or Store B. Although Store A appears to have a pretty good price, it doesn’t offer any discount program. At the same time, Store B has a slightly more expensive T-shirt of similar quality, but when you buy stuff in Store B, you get special club points that you can exchange for lucrative coupons. The choice is yours. Since you don’t lose quality and spend, say, 5 to 10 percent more, or even the same amount, you go to Store B because there you can collect points.


Doesn’t hurt to try

So, if you are wondering whether to try it or not, the decision seems simple enough: it never hurts to try a special customer program. If you don’t like it, you can opt out at any time. But the number of gifts and discounts you can get is well worth a shot. Just pay close attention to the details you disclose in the application form. Also, check whether your consent to receive marketing calls and/or emails is necessary. If you choose email as your preferred channel to receive marketing communications, you won’t even have to block unwanted calls from marketers. Filling in the form, you don’t have to pay for anything or do anything else. So, if you feel like trying, just do it!


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