Customer Loyalty Cards - how to stop the 'scams' ?

[herewegoagain.]

Can anyone think of a fool-proof way to stop people taking the 'Michael' with the loyalty cards I use to promote in my shops...?


I have a full set of terms and conditions clearly on display near the counter that states: (extract)

'one stamp per person, per transaction, one loyalty card per customer...'

If the customer forgets his/her card I offer an additional one, the cards are small and business card sized - so really there is no excuse not to bring it with them as they fit easily into a wallet or purse...

This means 'starting again' on a new card - if the original one is presented it can be used as normal and redeemed when complete - but I won't 'add them together'... Costa wouldn't.... Wetherspoon's wouldn't.... - they are small enough to be carried with them !!

- I used to add the cards together for the customer - but I was getting up to six cards with one stamp on each, putting the cost of my printing up and not seeing the benefit of return visits !! - so this was added to the terms and conditions...

Lately, the problem is I am getting people who come into the shop together who when one of them has finished their own purchase they blatantly (in front of me) hand the card to the next person, expecting the next stamp on the same card...

I refuse at this point and explain politely that it is one card per person, and ask if they have their own card? - if they don't I offer them one...

The cheeky 'mare' who 'tried it on' last time passed the money to her partner to pay for the item, to try and get round this - I still refused to stamp the card and again explained politely, as per above... She was not happy, but took a single stamp on her own card... - but said 'she was never coming back!!

I feel sometimes that it really is a case of 'damned if you do, damned if you don't'...

What I REALLY wanted to say was 'please don't try it on - we are a small business, doing our best in these tough times and I really don't appreciate you trying to scam me !'

I mean - I use the customer loyalty card as a basis to grow and encourage repeat business, but... as I business I don't have to give away anything...

I will 'bend over backwards' to help the customers (their attitude would dictate to the degree of...) but I really feel as though sometimes I should just charge 'as much as I can get away with' and not give away nowt !

Any thoughts???

Much appreciated

Dave

 

[SuffolkDesigns]

When I go to Cafe Nero with my wife and we have coffee I expect (and get) 2 stamps on the card.
If they started getting pedantic about it and insisting we each had our own card and therefore each pay separately for our drinks I would be quite annoyed.

As long as staff are not giving additional stamps for free I don't see the problem.

 

[tony84]

If you go to nandos they do it.

Again i dont see the issue. People do this because theyre getting a better deal - ive done it. Im not sure how i would feel if i was told i couldnt - ive never been in that position.

If you cant afford it reduce the benefit, find a cheaper printer or find a way around reducing the costs.... 20p for numerous cards wouldnt make too much different to the bottomline? If you get cards with just 1 stamp on - re-use them?

 

[LinkBright Media]

If they started getting pedantic about it and insisting we each had our own card and therefore each pay separately for our drinks I would be quite annoyed.

I quite agree! I was recently made to pay for a 'free trial period' by a member of this forum, simply because someone had previously taken advantage of his free offer. I think it's important to keep a clean slate for each customer and treat them with courtesy rather than suspicion, otherwise you'll just end up annoying people

 

[SuffolkDesigns]

Also, if a regular client brings a friend in for a drink, then the marketing is working so why not give them the 2nd stamp?

 

[vvaannmmaann]

Stop doing the loyalty cards? More trouble that there they are worth by the sound of it.

 

[Christine Hough]

It does sound as if the loyalty cards are not paying for themselves as a promotion in which case stop them. If though they are bringing more business in than they cost be generous.

What competition do you have?
Why do your customers come to you?
Make it so good that they would come even without loyalty discounts.

Its self defeating to aggrieve the very customers who are loyal.

 

[arcon5]

Doesn't sound like a 'problem' to me. The stamps are to reward loyalty, and whether they have 5 cards with 1 stamp or 1 card with 5 stamp the simple fact is they have been in the same amounts of time.

Cafe Nero will use multiple cards or merge them in to 1. McDonalds also do this. Often i'll use several cards totally 6 stamps.

Nero and McDonalds also give you a stamp per drink. Costa give you 5 points in every pound.

To describe it as a 'scam' is a bit dramatic.

Seems to me you need to decide whether the scheme actually works for you or now. A swipe card might work better, require them to register it online or something within 28 days - this way you can remind them you are there if they haven't been in for a while and avoid the 'passing back' problem.
Otherwise all you are doing is pushing customers away

 

[garyk]

Lately, the problem is I am getting people who come into the shop together who when one of them has finished their own purchase they blatantly (in front of me) hand the card to the next person, expecting the next stamp on the same card...

I would have to agree with the others and say if its one stamp per cup purchased then does it matter? If you are giving away the 10th cup (or whatever it is) free on 9 purchases then you have sold 9 cups at full price and know what your margin on each is (and your total profit).

Otherwise stamp the card with dd/mm and say only 1 purchase per day.

Good luck!


Gary

 

[IWYS]

I don't see the problem? If i were a customer, and i was going for a coffee with a friend, a relative, a work colleague or a client, and knew that i got a free cup when i had purchased 9 already, then i would keep coming to your coffee shop, instead of another one as it would benefit me.

If i brought 3 friends in with me, i would expect 4 stamps for 4 cups of coffee. You still sell 4 cups of coffee, so make the same money, and at the end of the day, i brought my friends to your coffee shops so why shouldnt i get the stamps?

Thats how i look at it from a customer anyway, and from your point of view, you're only stamping one card, less print costs

 

[mit74]

keep the customers happy by factoring it into your card. If you're doing 6 stamps for a freebie then simply do 10 and say it's a stamp per cup bought. If you get the ratio right you won't lose money. The customer will probably feel they're getting a better deal doing this and you may find it works better.

Have you thought about online mangement of the cards? The beauty of that is you get their email address for marketing and you can also save money on the printing etc.

 

[Vectis]

I do think that passing a person's loyalty card down the line for others to use is pushing it a bit. Are the cards personalised i.e. do they have the customers name etc on them? Maybe they should have.

 

[herewegoagain.]

Hello everyone, thank you all for the feedback, much appreciated.

It is not coffee we are selling, it is bags of sweets, so not quite so much profit in it as coffee - lol

We are a tiny little shop - literally 7ft x 10ft - there is not lots of competition locally, but the profit is tight, I keep the prices keen to keep the customers coming back - were not the cheapest, but we have the best quality...

the online thing would cost way too much to set up,

maybe I haven't worded my post too well? I am just fed up of people taking the p1ss with it... if you see where I am coming from...

maybe I just need a holiday? maybe not worth the aggro for the money anymore?

I am just trying to build the business up, but I do take it personally when the customers always seem to be trying it on.....

 

[SuffolkDesigns]

Maybe you could try changing it so it is 1 stamp for each xx gram bag of sweets purchased, and y amount of stamps = a free bag.
Base your calculations on every bag receiving a stamp and the stamp being redeemed. That way every stamp that is not redeemed is a bonus for you.
It might even encourage people to buy an extra bag or two so they can claim a free bag that day.

 

[arcon5]

maybe I haven't worded my post too well? I am just fed up of people taking the p1ss with it... if you see where I am coming from...

Yes. But you are in business to make money and the consumer is out there trying to keep hold of as much as theres as possible. It's a constant battle. I'm betting you've negotiated prices with your supplier? Or your LL? Because you want the money in your pocket rather than theirs - it's really the same thing.

maybe I just need a holiday? maybe not worth the aggro for the money anymore?

I am just trying to build the business up, but I do take it personally when the customers always seem to be trying it on.....

Maybe