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Do deferred discounts increase frequency of purchase?

by Oziboomer
2 replies
On a bigger scale the frequent flyer programs and any number of large loyalty programs have been created to increase frequency and build some loyalty to a company or brand.

My local bakery utilises a reward program where they store your details in a rolodex type filing system and the attendant stamps your card on every purchase over $5.

No need to carry a card or in many cases even remind the store attendant that you have a card because they know you and just pull your card and stamp it on every visit.

Every 8th visit you get $5 discount.

Has anyone else got experiences to share of simple to administer reward programs and any results they'd like to share?
#deferred #discounts #frequency #increase #purchase
  • Profile picture of the author AmericanMuscleTA
    Pretty good idea!


    It's like Amazon... I always use my Amazon card for all of my purchases for my points. I can then redeem them for cash or just use them to purchase whatever I want at Amazon. It keeps me coming back to them, although I hear if I just shop around I can find things cheaper on Half.com, or that new Jet.com.


    But... maybe I should start shopping around more... Amazon had to make a distribution center in Ohio! Stupid taxes!
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    • Profile picture of the author Oziboomer
      Originally Posted by AmericanMuscleTA View Post

      It's like Amazon... I always use my Amazon card for all of my purchases for my points. I can then redeem them for cash or just use them to purchase whatever I want at Amazon. It keeps me coming back to them, although I hear if I just shop around I can find things cheaper on Half.com, or that new Jet.com.
      Thanks.

      I was thinking along the lines of if you give a discount up front then you are reducing your immediate profit but if you are providing a credit note to be redeemed against future purchase you have only incurred the cost you paid for the product you are selling.

      It enables you to give the customer a full value discount but it only costs you whatever your cost of sales is and you've potentially encouraged a return visitor.

      The keep 'em coming back part is what I'm most interested in exploring
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