card loyalty - definition
ICLP - the global loyalty marketing agency is an expert in engendering card loyalty.
Card loyalty programmes are becoming ever more important in modern marketing. For companies in the financial services sectors, providing credit, debit or charge cards, it is imperative to understand the importance of card loyalty as being fundamental to building customer loyalty.
Card loyalty or reward programs - those which reward the account holder with bonuses, discounts, air miles, and other perks are a particularly effective form of card loyalty programme. Recent research suggests that holders use their cards specifically to collect loyalty points. Of course each of these transactions is an actual sale, which is potentially profitable for the bank or credit card company running the scheme.
Many banks and financial organisations have adopted card loyalty programmes in their drive to boost account holder retention, and in the fight to grow and retain market share. It is well known in loyalty marketing that existing customers or account holders are both easier and cheaper to service. Through various card loyalty initiatives, banks and international credit card brands aim to keep as many of their existing customers with a variety of card loyalty programmes.
Banks already have an advantage over other types of organisations who put loyalty schemes into effect, as most of their account holders will already use a credit or debit card, to which value can be added by the use of a card loyalty programme. Other corporations, in the retail or travel sector for example encourage their customers to adopt a charge card, which works like a credit card, and rewards customer loyalty with bonuses, special offers and various discounts.