Loyalty programs are big business in the offline world. If it’s not frequent flyer programs… it’s credit card points programs… or loyalty cards to be stamped, punched, swiped or signed. All designed to bring customers back into the store to buy more, and in so doing “buy” their loyalty.

I’m guessing that at least some of these are cost-effective. After all, why else would companies pour so much money into them. Then again, having worked in and with corporate marketing departments, cost-effectiveness is not always the number one priority.

So is a loyalty card - or the equivalent - something to consider for your online business? For example, you could introduce a points system where customers earn points each time they buy from you and get a discount or reward from you when they’ve accumulated a certain number of points.

I’m sure there are many more variations you can try too. But before you jump in, consider the argument against using a loyatly program.

In fact, consider the move made by Muffin Break, the biggest muffin franchise in Australia, to cease its loyalty card program of many years.

I don’t know why Muffin Break dumped its loyalty card… but I do know this: I’ve been a loyal Muffin Break customer for several years. (I have a penchant for their blueberry muffins!) Throughout that time, I’ve never bought muffins from Muffin Break because of their loyalty card. And there’s no question that I will continue buying their muffins without their loyalty card. To me, the card was simply a nice-to-have - an opportunity to get a free muffin every now and then.

You see, I am a true loyal customer. The kind of customer you really want - who buys from you week in, week out, because you offer a quality product that I love, not because of added incentives… or “bribes”. I won’t disappear because you no longer offer a loyalty card. I’ll only disappear if you fail to deliver a quality product or service at a reasonable price.

Maybe Muffin Break has realized that it’s best customers are just like me. And that if it continues delivering a quality product, it will continue to attract our business, and it’s revenues and profits will continue to grow… without the need for a loyalty card.

I’m not against loyalty cards per se. I think they have a place. Especially for start-up retailers. But a business that delivers a quality product and great customer service will get loyal customers anyway. It won’t need a loyalty card. And the corollary is this: no great business can afford to rely on a loyalty card for its customers. True, long-term loyalty is earned… it cannot be bought.

Again, I don’t know why Muffin Break dumped its loyalty card. I hope it was for the right reason: that if it focuses on delivering top quality muffins, it will please its customers without having to “bribe” them with a loyalty card.

So when it comes to your business, by all means consider how a loyalty program could work… but also consider the power of delivering quality products and services, and superb customer service, that generate true customer loyalty.