Loyalty Card Processing

March 4, 2013

Loyalty cards are an important part of modern business when it comes to payment processing. As e-business becomes more prolific and consumers have more options available, it becomes vital to retain repeat customers. Attracting new customers is just as important. Perks go a long way to doing both. Loyalty card processing can provide coupons, gift cards, discounts, and other features. Things that make customers want to come back for more business.

Attracting and retaining customers can be difficult without simply cutting prices – not always an option in an increasingly hostile economy. Loyalty cards and gift cards drive customers to return to your place of business without cutting into your bottom line. Consumers are more likely to return with a loyalty card in hand than they are without one. Why? They help build relationships with your target demographic. People feel appreciated when their business is rewarded, which in turn drives sales. Strengthening customer loyalty is the key to keeping them coming in your door instead of going to your competition.

Loyalty cards also allow you to step into the arena of targeted marketing. Every sale your customers make with your loyalty card enables the collection of data – what sorts of people buy what sorts of products, for instance. This knowledge can be invaluable. Even a little insight into your customers’ habits can enable you fill their needs better.

In addition to the obvious benefit of repeat business, loyalty cards also encourage increased spending. Most loyalty programs are dependent on a percentage of sales; e.g., after a certain dollar-value of money is spent, a reward is given. Even in the case of direct discounts (such as a card that saves cardholders 5% each visit), greater savings are observed as more money is spent. It’s a great way to encourage your customers to spend more with you.

Gift cards are another great device for boosting sales. Panicked gift-buyers know one thing – they want to leave your business with a gift, even if they aren’t sure what they want. Gift cards are a great answer to the problem and they safeguard that an unsure customer won’t walk away from your business empty-handed. Gift cards also provide immediate cash flow up front. Each card purchased is money in your pocket, and peace of mind for your customers.

Even after purchase, gift cards can help drive sales. Since they are usually given – as the name implies – as gifts, they bring new customers to your business (and another chance to sell your loyalty card). Most consumers who use gift cards spend more than the value of the card. This translates into more profit for your business.

We live in a digital age. Loyalty card processing and gift card processing are facts of life for modern businesses. Enhancing your point-of-sale transactions with profit-boosting electronic features is important to stay competitive. Attracting consumers with gift cards and keeping them with loyalty programs are cheap, effective ways of boosting your business.

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Categories: HMS News, Merchant Services, Small Business

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