VIP card programs can be one of the best ways to increase the loyalty of your customers and boost the revenue you generate from that customer over time. In fact, studies have shown that a repeat customer will spend 67% more than someone who walks through your door for the first time.
For businesses that are looking to grow, it might seem a bit counter-intuitive to create programs that reduce margins and give customers discounts on your product or service. The research shows, however, that offering VIP cards is a smart decision.
Members of retailers’ customer loyalty programs generate between 12 percent and 18 percent more revenue for retailers than do customers who are not members of the loyalty programs Accenture Interactive
How VIP Card Programs Benefit Your Business
When you show a customer that you value their patronage by offering a VIP or rewards program—you start building a relationship that makes them feel special and valued by your business. While it's true that many VIP programs involve discounts and the cost of setting up the program, when executed correctly, it will improve revenue and the overall health of your business over time.
The following are five ways that VIP card programs develop relationships with customers and help get them more invested in your business.
1. Customers will work towards earning the benefit
Some VIP programs offer rewards to customers in exchange for a specific number of purchases. If a customer is close to earning a reward, they might be more inclined to purchase a product or schedule an appointment. This type of benefit often works for services that are scheduled on a regular basis, such as at a chiropractic office or hair salon.
2. VIP cards remind customers about your business
If you can get customers to keep your VIP card in their wallet, they will be reminded of your business any time they see the card in their wallet. This might remind them of your company if it's been a while since they last visited, and the VIP card itself reminds them that they are a valued customer.
3. VIP cards prompt conversations
If one of your customer's friends or family member sees the VIP card, it could start a conversation about your business, and could ultimately lead to a referral customer for you. For most companies, even getting one referral customer will more than offset any costs associated with the VIP program.
4. Exclusive VIP rewards help customers feel special and valued
Everyone likes to feel special and appreciated. If you offer a benefit for your most valuable customers -- for example, your top 5% to 10% -- you will boost the loyalty they feel towards your business. This can lead to them choosing you over another, otherwise identical, company in the future.
5. Tier programs encourage customers to choose you over competitors
Many airline and hotel chains offer VIP tiers, where increased levels of spending lead to higher levels and corresponding benefits. If you structure your VIP tiers in the right way, there will always be enough of a benefit at the next tier to encourage customers to work towards it. Done right, this can create a sense of accomplishment in the customer, and can further invest them in your business. After all, they've "invested" a lot of time and money getting to a particular VIP tier, so it makes sense they would want to utilize it.
These are just a few ways that a VIP card program can improve your business. The key is to think about the long-term benefits of a VIP program. Even if it means spending money now, in the long run, you'll create a loyal customer base, who will spend far more with you than they otherwise would have.
If you're interested in getting your own VIP cards to start your program, schedule a free, zero obligation consultation with Plastic Printers! We have a dedicated team of professionals ready to design your cards to your exact specifications. Click below to get started!
