Loyalty cards don’t lead to loyalty
Loyalty cards have been a hot item for stores for quite a while now, but the word “loyalty” doesn’t really fit. Call it a “discount” card if you want, but the cards don’t actually create loyalty from customers. They might help with repeat sales, but don’t confuse “good discounts” with actual loyalty.
In the book “ The Human Brand “, the authors share three simple stories of companies that intentionally skip these silly programs.
Publix
A handful of companies, some with enviably loyal customers, refuse to use the Internet to play the loyalty and rewards card game. Among them is Publix supermarkets, one of the most beloved grocery chains in the southeast United States. “Publix does not have a loyalty card program because we don’t think you should need a card to save money at Publix,” a spokesperson for the company once stated. “We value all of our customers and we want them all to have a pleasant shopping experience.
In the time since the book was written, however, Publix has added the “Club Publix” loyalty program, going against what they said above.
Lululemon
Lululemon has perhaps the most loyal customers in retail today, and Lululemon has no loyalty or “rewards” program at all. In fact, Lululemon doesn’t even keep data on its individual…