Loyalty Cards
Loyalty cards with a bar code constitute one of the possible loyalty programs. It is a good solution for both small and large enterprises. Barcode cards are, to begin with, cost-effective since they do not require any special readers other than barcode reading devices used by the majority of companies. All they require is the installation of the relevant programs on the cash registers. Generally speaking, the barcode cards allow companies to make use of the existing company infrastructure.
Electronic or chip loyalty cards are often integrated with the standard payment cards. The chip and EMV technology make the card a multifunctional tool: new functions can be added to those that are as standard.
The difference between the standard payment cards and the loyalty cards is that the former require connection with the payment system center upon transaction authorization. Loyalty cards use a much simpler mechanism. All data (points and bonuses) are saved on the card and within the terminal memory. The connection with the system center occurs on a regular basis (e.g. once a day) with all the collected information transferred to the centre in one go. This method of authorization is fully secure both for the customer and the company.
Another type of loyalty card is the magnetic stripe card.
The external features of the cards are also very important. First of all, if the card has an appealing and attractive exterior, it will not be easily forgotten, as was the case with many in the past. Secondly, customers can have the cards look exactly as they wish them to. Their personal preferences are definitely an important factor in preparing the graphic design which, when customized, makes the card even more attractive in the eyes of its user. The more colors and patterns, the more expensive the card will be, but if that strategy is to bring benefits such as customer loyalty and the success of the program, then the expenses are definitely worth generating.
Card-based loyalty programs may take various forms, but the simpler they are the cheaper and the more effective they will be. That is why companies tend to choose solutions which guarantee that the customers are awarded points only when they can actually produce the card. Thereby the customers need not make their data accessible to every company which conducts loyalty systems and whose services they use. The obvious disadvantage of such a solution is that customers may forget to take the card with them. But the reliable protection of personal data is of higher importance to the majority of customers and for this reason the solutions outlined above have been commonly used in loyalty programs.
An interesting option that card-based loyalty programs offer is the transfer of points from one card to another. This makes reaching the number of points entitling to a prize much faster.