Question
Topic: Customer Behavior
Loyalty/frequency Card Programs
We're testing a discount loyalty card with the intent to increase frequency and total sales. As it stands now, when you purchase the card, you can't use it until your next visit. The conversion rate for this method is around 6-8%. The reasoning being that they will come back to use the discount card. My personal opinion is that our rates would be much higher if we allowed them to use the card THAT DAY. i.e. "Save 10% today when you sign up!" vs. "Save 10% some other day if you decide to come back!" How likely would a customer be to purchase a card they can take advantage of immediately vs. at a later date? Do you have any research to back your answer?
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