We all have specific stores that we shop at often. Whether it’s out of
habit, because we enjoy chatting with the staff, or the products are
amazing to us, we all have certain loyalties. I can’t stop going to the
grocery store on the corner even though I know that there are better
grocery stores around us. I can’t stop drinking Tim Horton’s coffee even
though I realize that it’s not that strong or special to be honest. We are
all loyal to a store.
I wanted to look at membership cards/store cards. These are essentially
loyalty cards to a specific store or a chain of stores. I wanted to
discuss store loyalty and loyalty cards that are used to bring us back.
What are a few things to consider about loyalty cards?
How often do you shop at the store?
Is this a store you visit daily or annually? How often do you find
yourself in the store at this point? These are just a few of the questions
that you should consider when it comes to deciding if you should get some
sort of a loyalty card with the store.
I ended up getting a Walmart specific credit card because I shop there
often and wanted to enjoy the cash back feature. I got myself a Tim
Horton’s store card because I drink a cup of coffee every single morning
and I don’t always have change. Instead of stressing out over change every
morning, I can swipe a pre-loaded store specific card. Sounds like a good
deal to me.
The frequency at which you visit the store should directly tie into your
decision here. If you’re going to frequently shop at a specific place
regardless, you might as well earn some points or take advantage of the
random rewards that come with a loyalty card.
What are the benefits?
What are the benefits of becoming a loyal customer? Will you get a
discount for using this store membership card? Are there any benefits to
the loyalty card? Some places will offer you a percentage discount, a free
gift, or some sort of a benefit to sign up. There are many different ways
to entice customers to become more loyal. It’s just a matter of finding
benefits that are relevant to you.
If you do sign up for the loyalty card, you need to find some sort of a
benefit that makes it worth it. Why should this store obtain your
Will consumption increase?
Perhaps the store card is a sneaky tool to get you to shop more
frequently. If you think about it, there’s no other reason as to why a
store would offer you a discount or some sort of incentive just to shop
with them. They want your business. They want you as a long-term customer.
To get you as a customer they’re willing to offer you some free gift or
perhaps a bit of a discount just to get you in the door. Once you’re in
the door they know that they have you.
Whether the program is a prepaid card or treated as a store credit card,
you need to understand why you’re signing up for one. Do you plan on
taking advantage of rewards? Will this loyalty program influence where you
shop? It’s cool to get a discount at a place you already shop it. It
totally sucks to get conned into shopping at a store you don’t care for
just because you feel like you have to since you have a loyalty card.
What do you guys think about membership cards? Did you every regret
signing up for one afterwards? Did you ever take advantage of a customer
loyalty program offered to you?
This was a guest post from Martin of Studenomics, a fun blog aimed at
helping you figure out what to do after college and how to find
the best student credit card. If you want to invest your hard earned
money you can learn about screening tenants to protect your rental property.
(photo credit: Andy on flickr)
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.