What is the Difference Between VIP, Loyalty and Rewards Cards?

VIP, Loyalty, Rewards program cards

Generally, at least 65% of a company's business is from current clients. It also costs a company approximately five times as much to attract a new customer than to retain an existing one. So, once you have your customers coming through your doors, you want to make the most out of every opportunity that you have.

According to Kevin Harrington of Forbes, there are three key factors in getting more sales without finding new customers, one of which is to be proactive. A great way to be proactive is to have programs in place to encourage reoccurring visits for your current clients.


By instituting programs like VIP, loyalty, and rewards programs, you are encouraging your best clients to continue their patronage. You may be wondering what the difference between the programs is and which one(s) is the best fit for you?

VIP Program

TruSmile Orthodontics service and discount card

A VIP program is a spectacular way to reward your absolute best clients. Whether they are the top-spending 5-10% or the client that loves to tell all of their friends and family about you, a VIP is a model of what your ideal client is. These programs are usually unpublished to add to the exclusivity:

  • Uber is famous for their brand promotion. However, their VIP program is kept pretty secret. As mentioned on Business Insider, once you take your 100th ride, you earn VIP status, which grants you special access to the best-rated cars and highest-rated drivers.
  • Trusmile Orthodontics rewards its top clients with discounts on service.
  • Delta has a very exclusive new program to eliminate the opportunity for paparazzi to photograph their best clients. The members are met on the tarmac by a driver who will whisk them and their luggage out of the airport to an undisclosed location. Currently, this is only available at LAX.

Rewards Program

Bowling alley, restaurant bar and grill punch discount card

Rewards programs are set up to accrue based on number of visits or points earned. Unlike VIP programs where your top or ideal clients are the only ones that are enjoying the rewards, rewards programs are open to all customers and only require contact information to become a member.

  • Lego does a fantastic job with their program, where clients earn 1 point for every $1 that is spent. For every 100 points, a $5 reward is earned.
  • Galaxy Bowling has a punch card as part of their Rewards Program. Once you buy nine bowling sessions, you will receive the 10th for free.
  • Foot Locker offers a very enticing rewards program that even comes with an automatic platinum upgrade option once you have spent $300 in a year.

Loyalty Program

vaper loyalty card with barcode

Unlike VIP and rewards programs, loyalty programs are not based on any purchase amount, but rather discounts and specials are freely given without restriction to encourage repeat business.

  • Kohl's is famous for their loyalty program. Throughout the year, Kohl's gives customers "Kohl's cash," in anticipation that customers will spend above what their voucher is for. They also actively mail their loyal customers coupons to get them back in the store.
  • West Coast Vape offers loyalty points for each purchase. The points can be used for future visits and include discounts as well as free products.
  • CVS provides members with special offers based on their shopping history and the opportunity to earn money back in rewards. 

* Bonus Tip *

Many businesses opt to include a plastic key tag for their members to ensure that they have a visual reminder of the business with them at all times. The benefit of any of these programs is to:

  • Keep your clients returning
  • Reward them for their loyalty
  • Increase revenue for your company

No matter which program you decide on, or whether you choose to offer all three, your customers are going to appreciate it.

Do you have a VIP, rewards, or loyalty program in place? Let us know your best tips and trick to promote customer loyalty in the comments section below!

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