• 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
  • Google+
  • Instagram
  • Twitter

Newsletter

Future Post

Your Guide to Burials: The Cost, The Requirements, and More

The loss of a loved one is tragic, but it is inevitable – we have all experienced it at different points in our lives. But it’s one thing to experience a loss – it’s quite another to be involved in the funeral. Planning a funeral for your loved one can be difficult; there is so […]

What is the Purpose of a Prenuptial Agreement When it Comes to Divorce

If you believe that prenuptial agreements are just for the wealthy or prosperous, you would certainly be misinterpreted. Several people who enter into marriage may have specific monetary risks that could provide issues in the event of a divorce. Some pairs might really feel that they are jinxing themselves by preemptively considering what their divorce […]

A Comprehensive Guide on Motorcycle Engine Lubrication

Motorcycle lubrication is black alchemy. Your engine’s oil does more than just lubricate it; it also helps clear up the exhaust and, in some situations, preserves fuel efficiency. Sites like Motorcycle Supersite suggest that you use oil as recommended in the bike’s manual if you are unfamiliar with this black alchemy. If you prefer changing […]

5 TIPS FOR CHOOSING A DRONE

Thanks to their versatility, drones have earned an important space in the toolbox of different audiences. They help the farmer to control the crops; the photographer to capture impressive images; and the guards, to attend to areas of difficult access. But not all drones have the same features and functions that’s why drone camera price […]

How Much Will I Get if I Sell My House: A Foolproof Formula

“Should I sell my house now?” is a question you might have kept pondering. Selling your house is a big deal. Whether upgrading, downsizing or moving for a new job, there are many things to consider, including how much money you’ll have. So, how do you know what to expect before selling? Follow this foolproof […]

A Website Accessibility Checklist for Business Owners – accessiBe

As a business owner, it’s important to make sure your website is accessible to everyone. This includes people with disabilities and those who use assistive technology. This blog post will discuss the steps you need to take to ensure your website is accessible to all, such as using tools like accessiBe. We will also provide […]

How to Create an Inclusive WordPress Site: Tips and Tricks – accessiBe WordPress

Creating an inclusive WordPress site is important for businesses of all sizes. No matter what industry you are in, it is essential to make sure that your website is accessible to everyone who wants to visit it. This blog post will discuss some tips and tricks for creating an inclusive WordPress site. We will also […]

How to Add an Accessibility Overlay to Your Website for ADA Compliance

If you operate a website that is open to the public, it is important to make sure that it is accessible to all users. This includes individuals with disabilities who may need special accommodations to access your content. One way to do this is by adding an accessibility overlay to your website. This blog post […]

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

  • Your Guide to Burials: The Cost, The Requirements, and More
  • What is the Purpose of a Prenuptial Agreement When it Comes to Divorce
  • A Comprehensive Guide on Motorcycle Engine Lubrication
  • 5 TIPS FOR CHOOSING A DRONE
  • How Much Will I Get if I Sell My House: A Foolproof Formula

Connect With Us

  • Facebook
  • Google+
  • Instagram
  • Twitter

Copyright © 2022 · Executive Pro on Genesis Framework · WordPress · Log in