Loyalty Cards Give A Two Part Tariff For The Card Issuers As Well As Benefit To The Consumers
While shopping in the malls, the customers can be seen carrying a colorful card with inscriptions. These are then offered during the buying of a product, at the counter. These are not credit cards or debit cards but such strips of paper or plastic cards that are well known in business circles as loyalty cards, reward cards, points cards, or club cards. Such cards are an integral part of the loyalty business model. By the presenting of these cards, the customers get bonus points or discounts from the chain of products or services that are managed by the business establishment which issues the cards.
By the presenting of these cards, the customers get bonus points or discounts from the chain of products or services that are managed by the business establishment which issues the cards. Some of the cards allow the bonus points to accumulate over a period of time, which can be encashed in the form of a free gift or in form of discounts on the price. Such discount offers on the loyalty cards are issued in order to hold the interest and the loyalty of the consumers towards a particular brand or conglomerate of brands.
The loyalty cards are issued by the retail groups for the consumers who can then present the cards as the retail establishments as a form of identification of their loyalty. These cards have a barcode or a strip that is computer recognized. So, when presenting the cards in the retail shops, these codes are recognized and they automatically are added into the consumers account. Most of these cards are actually issued when a significant amount of purchase is made and then the consumers when repeatedly buy from the specified shops or retailers, give the tariff to the card issuers.
There are not many companies which give out such cards as it requires coordination with many retail shops. Many large retail chains are present with a number of shops under their purview through which such loyalty packages can be availed. Many a times, the brands and retail agents that are not covered under the umbrella organizations also offer the discounts as it increases their product sale.
The concept of such loyalty cards can be found in many parts of the globe, the origin of which was from the large retail business of US and Europe. Gradually, in India also, the concept of the chains has come up fast. Globalization and foreign direct investment are the major factors in making the retail business spread their tentacles to the far corners of the world.
As the growth of the business establishment’s increase, a number of organizations are offering the cards to its customers. The more famous of such cards in the United States are the Smith’s, Albertsons, Giant Eagle, Tops, etc, in the supermarket products. Those prevalent in the European economy are the Payback, HappyDigits, Deutschland cards, Ladbrokes, Clubcards, to name a few.
The concept of the club cards extends to the different types of products such as books, music cassettes and CDs, pharmacy products, vehicle fuels, etc. These products on which the cards can be issued are mostly found in the large retail marts where a number of products are available. The consumer benefit has been a big driving force, while ensuring on the way of a good tariff flow for the company.
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