Punch cards are a valuable, low-cost way to get more business. You can use them to market to new customers and keep previous patrons coming back. There are lots of loyalty program ideas out there, but the main two types are visit-based and spend-based.
The first step to creating a punch card program is to understand the kinds that are out there. Choose between these two main types of reward systems and then narrow it down to a specific deal.
Punch card programs that use a visit-based system reward customers by the number of times they buy something. These are popular in bars and small shops. The most familiar model we all know is the “Buy X and Get X Free” deal.
Spend-based loyalty programs use a point system based on how much a customer spends. Tracking points with a paper card is tricky, so it’s common to see spend-based rewards offered digitally.
However, some places put monetary increments on a punch card. For example, you could start a punch card system for a $5 sandwich deal. Once customers buy 10 sandwiches (spend $50), they get a free one.
Whatever type of reward system you choose, make sure the reward is worth a customer’s loyalty. It should be easy to obtain and popular among your audience. If your burgers are the most popular menu item, offer a free burger after a specified number of purchases.
On the flip side, don’t offer your customers a bad deal. In the same burger scenario, people probably won’t use the punch card if their reward is just a free drink or cookie.
In this day and age, it’s a no-brainer to offer a digital reward system. A case study on customer experience found that 62 percent of U.S. customers make more store visits because of mobile store rewards. Whether you go totally paperless or promote a mix of both, you should offer a digital option.
With some research, you can find customer loyalty apps and software for a monthly service fee. They offer valuable customer insights and your own QR code. Display it on your order counter so customers can do a quick scan to sign-up while they’re in line.
A tried and true way to get people to use your punch card is to offer a sign-up bonus. It’ll make you stand out from your competition and entice customers to join. Simple incentives like a discounted meal or a free item go a long way.
Getting the word out is just a start. Once customers start signing up for rewards, keep their attention by creating a more in-depth loyalty program. Utilize your digital outreach by offering birthday freebies, discounts, or even raffles.
The ultimate goal is to keep your customers interested. By offering regular perks in addition to a punch card program, they’ll be more likely to keep coming back.
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