For some, disloyalty pays


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Gwilyn Davies’s disloyalty card.

The concept of a loyalty card in the retail world isn't new; customers patronize a store, the store rewards them, and the customers want to return. But Gwilym Davies discovered that doing the opposite — encouraging his customers to visit his competitors — might be even more rewarding.

Davies, the 2009 World Barista Champion and owner of London-based Prufrock Coffee, caused a flurry of excitement in the coffee-shop world with his disloyalty card. The card lists eight of Davies's favorite coffee haunts, and when a customer racks up stamps from all eight, Davies treats the cardholder to a free coffee from his own coffeehouse.

The scheme has been remarkably successful. The card promotes business within the local market and fosters a spirit of goodwill toward Davies and his business. It also helps keep standards high; when businesses know they will be directly compared to their competitors, they are motivated to maintain or raise their game. And the customer also wins, not just by receiving a freebie, but by discovering new businesses they otherwise may not have visited or even known about.

Seattle barista Sarah Dooley created her own disloyalty card after hearing about Davies’ scheme.

Similar cards have popped up in Seattle and Toronto to positive reviews; maybe the idea will be spotted next in bakeries.

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