Do you love loyalty/reward points?

Well most people must, because it seems today more and more retail businesses are offering points as a reward for purchases made at their stores. For example, I receive points at my GM/Chevy and Ford dealers when I get repairs done. When I return I can use the points as dollars to reduce my next repair bill. Recently we bought a new flat screen TV at Best Buy and they gave us points that I can claim at their Reward Zone towards additional purchases. Cabelas gives points when I use their credit card which can be used towards new purchases at Cabelas. Sometimes Cabelas offers double points when you make purchases at Cabelas with the card. True Value stores gives points on purchases made and at my local grocery store I get points that I can turn into money off my gas purchases at the local gas station down the road.

The point system is meant to get customers to return and buy more items and services from the merchant. Is it working? Well it must be because more and more stores are using it. It's a nice feeling when you walk up to the checkout counter to pay and the clerk asks you do want to use your points towards your payment. It does help build loyalty, especially if the service and products are good.

The other thing I see happening is to enroll in the points program the retailer is able to capture your email address. Now they have your permission to send you emails with various promotions to get you back in  their store to buy more and get additional points. After all, email is a terrific way of get a sale message to your local target audience.

So how can other types of retail businesses, like flooring and furniture stores use points to build loyalty and increase sales? It's tougher for them because consumer purchases are so infrequent. Can a carpet store work with a local carpet cleaning company to allow consumers to earn points towards their next flooring purchase or next carpet cleaning? Or, can several different local businesses get together and offer points that can be redeemed at any of the particating retailers? Maybe offer contractors or interior designers points every time they make purchases through your store.

Anyone have any other thoughts?