The extensive reach of the internet has drastically changed the way businesses are run in the past few decades. With a wide range of sources to get goods and services from – some from around the world – competition has drastically increased for producers trying to keep loyalty. One method of doing so is capitalizing on the idea of a rewards program, one that is easy to track and simple to enforce.
This is where punch cards come in. At its basis, it is merely a card where consumers can keep track of how many qualified products they have purchased from a store. Once they have bought enough, there is usually a reward, whether it is a free product or a discount on the next purchase. It encourages them to return to the store so that they can try and earn a reward from buying what they usually would and encouraging them to spend.
There are several benefits to using punch cards over other rewards programs. First, as it is a physical object, it can convince consumers of its tangible value. Besides, it can be fun for them to see the physical tracking of how close they are to the next goal and prize. Also, not only are they easy to launch, but they are also incredibly cheap to produce. It only takes a few sheets of card stock or business cards and a hole punch for staff to use. Teaching those working in the company on how to use the cards is a simple process as well since they only have to keep track of how many holes or marks are on the card.
However, with the benefits, there are a few downsides as well. For example, it may be a possibility that consumers cheat on punch cards and add an extra hole without approval. They may also try and make copies. To avoid people taking advantage of this, try to have a watermark put on the card or use a unique stamp that can be hard to buy elsewhere.
Whether punch cards work or not has been debated over the years. According to a study by First Data Competitive Intelligence called the “Consumer Loyalty Study,” it appears that 50% of consumers who are part of a rewards program use punch cards. They are implemented in several locations due to having been tested before. However, when using punch cards, it is crucial to make sure that consumers can easily differentiate between companies and their rewards.
Having any reward system is better than having none and using punch cards are one way to increase consumer loyalty. Due to the ease with which it can be implemented, there is no reason to wait. However, before jumping into the idea, make sure to check out other punch card examples to understand how it should be formatted and spark creativity. With punch cards, consumers are sure to buy more to achieve their rewards.
