November 25th, 2010
Retailers Use Plastic Cards to Grow Business
The world has become a much noisier place. Instead of choosing from a handful of local tv and radio stations and networks, the average consumer is bombarded by cable networks, satellite radio, and podcasts, to say nothing of the constant noise created by websites, blogs, online video channels, etc. Now even the simple telephone has been replaced by smartphones that provide access to content, programming and, yes, advertising, that was unimaginable twenty years ago.
Amidst all this noise, retailers have to find ways to be heard and noticed by potential customers. Some stick to the old school way of putting sale fliers in the newspaper and mail, but most have moved to using shoppers clubs, loyalty programs , and online communities as a means for reaching new customers and then keeping then engaged over time so that they become repeat visitors and even store advocates.
One of the most popular ways of giving a consumer a sense of ownership in a business is by issuing them a plastic card . In most cases these cards entitle the holder to additional discounts and savings when they purchase certain items. Some cards are used to accrue points against future freebies or to replace the old-style punch cards where buying five or ten of an item results in a free item on the next visit. In both of these cases the card creates a connection between the consumer and the store and provides an incentive for the customer to return again and again. The only noise the card has to compete against is any other cards in a given consumer’s wallet.