A key change is taking place in the plastic products market, and it involves key chains. Grocery cashiers are now scanning shoppers' hole-punched plastic key fobs before scanning their crackers, and the same trend applies to drugstores, bookstores, hotels and many other businesses. Customer-loyalty programs are a major reason plastics business is booming. Firms want repeat customers, and customers want rewards-plastic cards help both sides. The popularity of membership, loyalty and gift cards have attracted more distributors to the plastic products market, which typically yields better margins than forms.
Plastic cards are a great way for end users to identify and distinguish themselves.
I know I'm more apt to go to a restaurant or hotel or other business that offers a reward program. Smith is not alone. Forty-three percent of buyers who had loyalty cards said they shopped more often at retailers whose loyalty cards they owned. The number of participating households in frequent-shopper programs has doubled over the last four years, according to research firm AC Nielsen. It's getting more competitive, but not as competitive as business for letterhead or envelopes, where there's a shop on every corner that can offer those products.