Benefits For Companies That Offer Loyalty card Schemes

• Identification of Customers (enabling deeper relationship marketing)
• Reason for More Contact with Customer
• Identification of Customer Behavior – who buys what, when, where how much, how, etc. + Identification of Trends.
• Customer Tie-In
• Increased Sales Volume / Turnover
• Damage to Competitors (if successful and especially if rewards  based on minimum requirements, e.g. air miles)
• Cross Marketing Opportunities (eg. Financial Services)
• Customer Satisfaction
• Word of Mouth if it is a good deal
• Differentiation / More Appropriate To Those Who Want It
• May Hide Real Prices & Therefore Enable Higher Prices
• Perhaps New Customers  
• Possibility To Sell Customer Data (in certain circumstances)