Are Loyalty Cards Actually Rewarding?

Giving away loyalty cards is a growing priority for Britain’s restauranteurs; but do we really benefit from them?

10:16 06 May 2015

Cafés and restaurant chains who naturally would want to attract more customers while retaining the old ones are offering a mixed platter of loyalty incentives that range from reward cards to random freebies. But as more and more establishments follow the trend, it is becoming clear that a random freebie will not turn a one-time visitor into a regular dinner. 

 

The trend started with loyalty cards where customers receive a point for each drink they purchase and get the 10th drink for free. As competitive gets stiffer, other establishment went further. Costa Coffee, for example, started its point-based Costa Coffee Club card that rewards customers with points per £1 spent that they can use on any Costa product in any outlet. 

 

Despite marketing efforts from other establishments, it was Nando’s approach to building loyalty that seems to work. Using its card, customers earn “chillies” per visit that they can later on use to get free food. The card also offers them with greater flexibility in both monitoring rewards earned digitally and redeeming them in-brand.