Merchants use high-tech tools to reward loyal customers

Merchants use high-tech tools to reward loyal customers

In today's competitive market, retailers and other credit card issuers are constantly looking for new ways to woo prospective customers and keep their current clients happy. Rewards credit cards have taken off with unprecedented success; it seems like there is a new development in this arena every few months. Credit card processing has grown in leaps and bounds through technology, leading merchant account providers to increase the possibilities for consumers and merchants alike.

For example, a chain of grocery stores in Washington has implemented a new retail rewards credit card program that allows customers to take advantage of sale prices after the fact, according to StoreFrontBackTalk.com. If an item goes on sale within seven days of purchase, the difference is credited to the customer's account.

Obviously, this is a huge incentive for consumers to use rewards credit cards on a regular basis, particularly if more retailers take an interest in credit card processing technology. Linking their merchant accounts with customer tracking tools will provide more opportunities for targeted marketing efforts.

Not only does this help customers save money, it is also a major source of convenience. Many stores allow customers to bring items in with a receipt if those items go on sale within a certain time frame, but busy customers simply do not have time. The rewards card sale price refund is automatic and requires no additional action on the part of the customer.

Indeed, mobile coupons seem to be the next big event on the horizon. Merchants will be able to provide rewards credit card holders with coupons and discount offers directly on their cell phones. Customers won't have to remember to bring their coupon clippings to the store; instead, they can access coupon codes electronically.

In some cases, mobile coupons are linked to the rewards credit card with individual stores, while in others they are linked to loyalty cards used to track customer information. Either way, the store keeps a record of which discounts and offers have gone to which customers, which means easier checkout processes.

The potential applications of credit card processing and loyalty rewards programs are virtually limitless. Business owners can track their customers' spending patterns through their merchant account providers and through their own retail credit cards, thereby increasing the chances they will be able to deliver the products customers want most.

Other loyalty rewards programs include immediate cash back on credit cards, automatic distribution of coupons and sale announcements via e-mail, and gift certificates for select retail stores once customers reach a certain spending threshold. If credit card processing companies can supply the necessary data, business owners will be able to provide their customers with more targeted marketing than ever before.

Published: July 6,2023