A customer loyalty card program can help a business show it values its customers, will encourage repeat business, is a low-cost way to advertise a business and can help an establishment learn more about the customer. According to Search CRM, a loyalty card program is an expensive endeavor and can cost a business up to 5 percent of its revenue. In addition, it can take up to 18 months for a business to see the return on the program fully. Setting up a customer loyalty card program is a long-term commitment that can bear fruit when executed properly.
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Read more here:
http://www.ehow.com/how_6713572_set-customer-loyalty-card-program.html
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It costs more NOT to have a loyalty card program. Something like 5 times the cost to get a new customer vs retaining a current customer. Loyalty programs are a small price to pay if you think of it like that.
I agree!