Spending-Based Loyalty Programs: Perka Gets Beyond ‘Buy 10, Get 1’

“Buy 10, Get 1” loyalty programs are directly descended from paper punchcard programs and serve a general purpose. They are especially effective for transactions that are always about the same (i.e. coffee, pizza and the movies).

But how do you spur more buying and more frequent buying when transactions are highly variable? This was a question posed last year by Southwest Airlines when it shifted its loyalty program from trips to dollars spent.

Now Perka, a 28 person, national loyalty provider based in Portland, OR and New York, is adding a “Flex Card” option for its loyalty efforts as well. Perka’s Flex Card program enables local merchants to not only tally different kinds of spending, but it also enables them to set a variety of thresholds for rewards (i.e., 50 points to a shirt, 500 points to a birthday party, etc.)

Co-Founder Robert Bethge tells us the Flex card program was soft launched in October, and costs merchants $50 per month, as opposed to $35 for the standard electronic punchcard. Currently, 50 merchants are on the flex card option, while 450 take the punchcard.

Bethge adds that a key advantage of the Flex card program, he notes, is that it leverages the company’s ability to read directly off Point of Sales systems, adding many additional “closed loop” verification capabilities.

This Post Has 3 Comments

  1. Ryan O'Malley

    It seems like this will be a more effective way to track customer information. I imagine other companies will follow.

  2. Weight Loss

    This seems like a newer trend with business owners seeking to increase loyalty with their current customers. Over the years experts have said, that the ability to keep a loyal client costs less than generating a new one. My question is how does “Perka” deliver the data to their customers?

  3. Hair Extensions Gilbert

    Wow, I love this idea and I can see how adding a loyalty program for my hair salon could help me increase business and have a higher retention.

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