• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Sonic Boom

  • Home
  • About
  • Travel
  • Music
  • Business
  • Lifestyle
  • Health
  • Home & Garden
  • Finance
  • News
  • Blog
  • Contact

September 11, 2019 by Eddy

Are Loyalty Schemes still Worth it?

The initial thinking behind loyalty schemes/cards was to reward regular customers and, in turn, encourage repeat custom. In recent years, these schemes have become rich sources of data for the companies that issue them. This data is in turn used to find out what customers are buying and what they are interested in, with companies enjoying both strategic and financial benefits from the use of this data. Just as technology has advanced, loyalty schemes have, too. As a result, many critics argue that the consumer benefits of this practice are beginning to wane. But if this really the case – and more importantly, are loyalty schemes still worth our time and effort in 2019?

Coffee shops

When looking at the value of loyalty schemes, coffee shops are a great place to start. Many of us are probably already familiar with the stamp system whereby customers are rewarded with a free beverage after so many stamps. Although not strictly a coffee shop, McDonalds still employs this system and it has proven successful for many years. On the other hand, coffee giant, Starbucks, have ditched this scheme in favor of plastic loyalty cards akin to those handed out by supermarkets. Companies are undoubtedly collecting more data from customers in this way but the question is, are they passing on this benefit to the consumer? Starbucks’ current reward scheme states that you have to use you loyalty card 15 times before getting your free beverage which means, unless you drink as much coffee as Twin Peaks’, Agent Cooper, it’s likely that you’re never going to feel a noticeable benefit. As an aside, Coca-Cola recently acquired the UK brand, Costa, so you will now soon be able to comparer the two universal coffe brands’ loyalty schemes here in the U.S.

 

View this post on Instagram

 

A post shared by さゆり (@jejejunh) on Jul 2, 2019 at 10:14pm PDT

Online VIP and loyalty services

A number of companies now offer online schemes which revolve around loyalty or paying a monthly premium to enjoy the benefits of VIP membership, which also encourages returning custom. The North Face reward customers with points with every online purchase while companies such as Barnes & Noble operate a VIP membership program which gives you 10% discount off virtually every item on the website.

With online gaming loyalty programs, platforms such as Aspers Casino, offer VIP perks and promotions such as special access to the ‘slot of the month’, and have also put in place different stages of VIP levels, depending on your input. If customers particularly favor a certain game, such as the popular Starburst slot game, for example, the bonuses and perks reward this loyalty and maintain high levels of consumer satisfaction and engagement. Again, your savings really depend on how much you use the service in question. However, The North Face’s scheme has certainly increased customer engagement and is highly praised by many online review sites.

Supermarkets

It’s impossible to talk about loyalty cards and schemes without mentioning supermarkets; after all, they are the most likely to be central to a consumer’s lifestyle than any other. With so many factors to consider, analysis of supermarket loyalty schemes is tough. Special deals and offers within the supermarket industry are transient, and this can have a massive effect on where people choose to do their shopping from one week to the next. Consumer magazine Which? has done a number of studies relating to the relative cost of shopping at ASDA or Tesco (formerly Fresh & Easy in the U.S. – remember them?) for example. With this information, the different loyalty schemes and cards can be factored in to assess their worth to each individual customer.

Source: Pexels

Final thoughts

If you’re looking to save money then loyalty schemes and cards pale in comparison to shopping around for good deals. At the end of the day, it’s worth having a loyalty card as long as you don’t mind handing over your data to “the man”. A loyalty card or scheme should never be your sole reason for shopping in one specific place – but for now, at least, they do have a place within the consumer landscape.

 

Filed Under: Blog

Primary Sidebar

About Us

Hi Everyone. My name is Eddy and I'm a 28 year old American guy. I live outside the box and do things on my own terms. I quit my job a few years ago to pursue my writing passion, so here I am sharing this blog with you!

Connect with us

  • Facebook
  • Instagram
  • Twitter

Newsletter

Future Post

Five Important Reasons One Shouldn’t Delay Foundation Repairs 

Imagine a homeowner unwinding after a busy day and suddenly noticing a crack in the wall. He thinks it is a minor issue, but this could be a significant foundation problem. Most homeowners try to cut costs and think of dealing with such issues any other day, but foundation issues are not something one should […]

What is the Role of Predictive Analytics tools in Data Science?

Predictive analytics software uses historical data to predict future outcomes. These tools can be used for various purposes, including identifying potential risks and opportunities, detecting patterns and trends, and making data-driven decisions. The advanced tools use algorithms to automatically learn from and improve on data without being explicitly programmed. Predictive analytic tools can go beyond […]

The Benefits of Business-specific Credit Cards from a Credit Union

Getting a business-specific credit card is an important step for any small business owner. Business credit cards offer various benefits for those looking to manage their business expenses. But what about the benefits of business-specific credit cards a credit union offers? With lower interest rates, fewer fees, and more flexible terms, getting a business expense […]

CNC Router Signs: Tips for Making Perfect CNC Signs From Scratch 

CNC router machines have several uses. From modern-day sculpting to engraving and wood carving, there are no limitations to what a router can do for you in professional and personal ways. Engraving wood signs is a time-honored tradition that has been here for many years. From welcome signs in homes or businesses to door markers, […]

Unbeatable advantages of elopement

More and more couples tend to choose elopement with a smaller budget and an intimate ceremony. Running away from everyone and having an amazing day just for the two of you is so romantic. Let’s see what other advantages can be found during the elopement preparation. Saved money Traditional wedding costs a lot. Its budget […]

Basic Necessities For Your Pets

The same way as us humans, they also need proper care and the right amount of necessities for them to live well and healthily. The moment we’ve come to take them into our homes, we must consider all the responsibilities that we’ve come to partake in as their parents. Taking care of pets is high […]

3 Tips for Choosing Car Insurance

Having a car means you have a lot of responsibilities, one of which is to get the right car insurance. Otherwise, you could be left paying out of pocket for expensive damages should something unfortunate occur. But choosing the right one can sometimes be a tricky task, as there are so many different policies available […]

Calistoga: Oasis Of Sacred Springs

Do you want to soak, steam, and rest in a relaxing hot spring where you can enjoy it at the same time? I got you covered! Calistoga is well-known for its hot springs, sparkling mineral pools, and mud baths. If you want to relax here and have no place to stay, check out Calistoga vacation […]

Footer

About Us

Hi Everyone. My name is Eddy and I'm a 28 year old American guy. I live outside the box and do things on my own terms. I quit my job a few years ago to pursue my writing passion, so here I am sharing this blog with you!

Latest Post

  • Five Important Reasons One Shouldn’t Delay Foundation Repairs 
  • What is the Role of Predictive Analytics tools in Data Science?
  • The Benefits of Business-specific Credit Cards from a Credit Union
  • CNC Router Signs: Tips for Making Perfect CNC Signs From Scratch 
  • Unbeatable advantages of elopement

Connect With Us

  • Facebook
  • Instagram
  • Twitter

Copyright © 2023 · Executive Pro on Genesis Framework · WordPress · Log in