Exploring alternatives to loyalty cards for cultivating repeat business, we gathered insights from a diverse group of experts including founders and marketing leaders. From adopting a subscription model to fostering personal connections, dive into these ten innovative strategies that could transform the way you engage with your customers.

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Contents

1 Adopt a Subscription Model
2 Launch a Digital Rewards Program
3 Implement a Tiered-Referral Program
4 Surprise With Personalized Gifts
5 Tailor Experiences With CRM Data
6 Introduce an Exclusive VIP Program
7 Offer Personalized Guest Experiences
8 Create Dynamic Customer Accounts
9 Provide Personalized Discounts
10 Foster Personal Connections

Adopt a Subscription Model

One effective alternative to loyalty cards for encouraging repeat business is the implementation of a subscription model. This approach allows customers to pay a recurring fee for exclusive access to products or services, fostering a sense of community and ongoing engagement.

In my opinion, subscription models not only provide consistent revenue for businesses but also create a deeper relationship with customers, as they feel valued and are more likely to provide feedback and engage with the brand.

Moreover, this model can encourage customers to discover more offerings, leading to increased overall sales and brand loyalty.

Rohit Vedantwar, Co-founder – Director, Supramind.com

Launch a Digital Rewards Program

One effective alternative to traditional loyalty cards for repeat business is our digital rewards program, accessible via our mobile app and website. Customers earn points with each eco-friendly purchase, redeemable for discounts or donations to environmental causes. Since its launch, our digital rewards program has boosted customer retention by 27% and increased average order value by 19%.

This approach not only eliminates plastic waste but also strengthens customer engagement through personalized offers and sustainability initiatives. By prioritizing digital rewards, we reinforce our commitment to eco-conscious practices, incentivize repeat business, and cultivate a loyal customer base dedicated to supporting sustainable initiatives.

Chaitsi Ahuja, Founder & CEO, Brown Living

Implement a Tiered-Referral Program

I’d suggest implementing a tiered-referral program as an alternative to loyalty cards. This strategy incentivizes existing customers to bring in new clients by offering escalating rewards based on the number of successful referrals.

For example, a customer might receive a small discount for their first referral, a larger discount or free product for their fifth referral, and perhaps a significant experiential reward (like a VIP event invitation) for their tenth referral. This approach not only encourages repeat purchases from existing customers but also helps expand our customer base organically.

A referral program can be more effective than traditional loyalty cards because it creates a network effect. It turns our satisfied customers into brand advocates, leveraging word-of-mouth marketing, which is often more trusted than traditional advertising. Also, this method provides a clear, tangible benefit to customers for their advocacy, which can feel more rewarding than slowly accumulating points on a loyalty card.

Lucy Wenham, Marketing Team Leader, ID Card Centre

Surprise With Personalized Gifts

As an e-commerce expert, I’ve found that surprise gifts and random acts of kindness are an effective alternative to traditional loyalty programs. Rather than a points-based system with incremental rewards, surprising your best customers with gifts shows you value them in an authentic way.

For example, I once sent a handwritten thank-you card and gift card to a longtime customer of one of my clients. She was so appreciative that she shared her experience on social media, generating new customers and goodwill. The cost was minimal, but the impact was huge.

Personalized gifts don’t have to be expensive. A free product upgrade, complimentary shipping, or access to new collections before public release are little gestures that go a long way in making your loyal customers feel special. The key is choosing something meaningful and aligned with your brand that sparks delight and shares your appreciation in an unexpected way.

Steve Pogson, Founder, First Pier

Tailor Experiences With CRM Data

You may use a personalized customer experience program. This approach involves leveraging data analytics and customer relationship management (CRM) tools to tailor interactions, offers, and services to individual preferences. By understanding each customer’s purchasing habits, preferences, and history with our company, you can create targeted marketing campaigns, exclusive product recommendations, and customized promotions that resonate on a personal level. This strategy not only encourages repeat business but also enhances customer satisfaction and builds a stronger emotional connection with your brand.

Adam Lenhart, Managing Partner, Optimum Supply Chain Recruiters

Introduce an Exclusive VIP Program

To gain loyal customers and establish a thriving repeat business, introduce a VIP Program. The idea behind the initiative is to offer exclusive benefits to a select group of customers who meet certain criteria. After spending a specific amount or repeatedly purchasing products or using services, customers are rewarded with, for example, discounts, free samples, early access to new products, or invitations to VIP-only events, such as product launches and workshops.

When customers decide to purchase products or services, they start collecting points that enable them to win rewards. They want to upgrade their status and are more willing to use your services again instead of looking for a new supplier where their journey has not started. To keep the fun going and motivate customers, implement tiered levels (e.g., Silver, Gold, Platinum) to reach higher tiers with better rewards.

VIP programs reduce customer churn and can generate additional sales, boosting the brand’s revenue. Additionally, customers feel unique and appreciated by receiving privileges unavailable to the general public. Satisfied VIP members are more likely to recommend the brand, generating positive word-of-mouth and attracting new customers.

Nina Paczka, Community Manager, MyPerfectResume

Offer Personalized Guest Experiences

One effective alternative to loyalty cards for repeat business is offering personalized experiences. By tailoring special offers and experiences based on guests’ previous visits and preferences, we create a memorable and unique connection. This could include customized holiday packages, exclusive access to events, or personalized thank-you notes.

In my opinion, personalized experiences foster a deeper emotional connection with guests, enhancing their loyalty more effectively than traditional loyalty cards, as they feel genuinely valued and appreciated.

Jonathan Pickard, Head of Marketing, Holiday Resort Unity

Create Dynamic Customer Accounts

Customer accounts are a much more dynamic and information-rich way to generate repeat business and gather essential marketing data from customers. They also allow for partnerships with other businesses; our customers can get discounts with storage companies and house cleaners, for example.

Nick Valentino, VP of Market Operations, Bellhop

Provide Personalized Discounts

A great alternative to loyalty cards is personalized discounts. Businesses can offer discounts tailored to individual preferences. This personalized approach makes customers feel special and understood, enhancing their shopping experience and encouraging repeat business. Unlike traditional loyalty cards that can be easily forgotten or lost, personalized discounts can be conveniently delivered via email, apps, or directly at checkout.

This method boosts customer loyalty and provides a more dynamic and engaging shopping experience. In my opinion, personalized discounts are a smarter, more modern solution for fostering repeat business, as they create a direct and meaningful connection with each customer, ultimately driving long-term loyalty and satisfaction.

Fahad Khan, Digital Marketing Manager, Ubuy Nigeria

Foster Personal Connections

While I love filling up the stamps on my loyalty card, I love it even more when my go-to cafe and/or barista remembers me personally. It could be my name, my coffee order, my favorite pastry, or even the little details about my routine, like my usual visit time.

You’ll always remember how someone made you feel, and just a simple, daily positive interaction can impact your perception of a brand or business. A small gesture like remembering my name or non-verbal cues like a friendly demeanor makes me feel appreciated and encourages me to return. Everyone likes to think of themselves as the “special” customer, and the simple act of being recognized and acknowledged accomplishes this.

Oftentimes, my barista looks for cues by asking me about how my coffee was the previous day. There is no substitute for human small talk and just a desire to retain customers.