Loyalty Information

 

Description

 

The basis of a Loyalty System is to be able to reward Customer/Members with loyalty points each time they purchase a drink/meal/Product from a Business/Venue. Giving Customer/Members a special price each time they buy a drink is soon forgotten, but giving a Customer/Member Loyalty Points gives a sense of reward and the perception of being able to get something for nothing. By using the SwiftPOS Loyalty solution, the best customers will be able to be identified and potentially offer them unique incentives, which results in the customer choosing your Business/Venue over similar Businesses/Venues in the area.

 

To Be Considered

 

  1. Note : In SwiftPOS Version 4 or higher, if the validation of Members/Accounts and the tracking of Loyalty Points is required then NetPOS.Net must be running and the sales files with the extension BJL will need to be created. NetPOS settings will need to be configured at the SwiftPOS Touch terminal via Customer Settings.
  2. The Loyalty conditions are set up against each Category, Location and the Loyalty Multiplier is set up against each Member Classification.
  3. If you are using NetPOS, you need to check your NetPOS Configuration in SwiftPOS Touch and the Customer Settings.
  4. To disable points being awarded to Members/Accounts in SwiftPOS Back Office select Member Classifications and set Join Point and Points Multiplier to 0 (zero)
  5. Points are normally based on the value of the Product. This is the default settings. It is also possible to base points on a fixed amount of points per Product here.
  6. Depending on how you want to display the Member Name on the screen, adjust these settings here for each Location Group (Venue) with printer settings here.

 


Implementing a Loyalty Program

 

Typically, Businesses allow approximately 1-4% of turnover in Bars and Restaurants which is put towards the customer loyalty program. As a starting point, try rewarding 1.5 points for every dollar spent, with small variations made on different days of the week or different Product ranges. A good example would be to reward double Loyalty Points on particularly quiet days of the week. The main requirement in a customer loyalty program should be that the member cannot relate directly back to the amount of money that they have spent. It should be perceived that a member is ???lucky??? to have a large number of points displayed at the SwiftPOS Touch terminals after not having spent a lot of money.

To assist this variable points scheme, small prizes can be given out as bonus points (instead of physical prizes) which are added to their total points. This can be achieved by putting Products in a Product Promotion and rewarding members with a pre-set number of bonus points when they purchase the item(s). The results of a successfully run Loyalty program include:

 

  • The benefit of Member???s paying their renewal fees sooner (so that they are able to continue to use their card to gain points).
  • Cases where member???s who are signing their partners in as guests, suddenly want to become members so that they can also get the benefits of the loyalty system.
  • The basic premise that it is more cost-effective to increase sales to an existing member than to find a new one is beyond dispute. (The Harvard Business Review rates it as 6 to 8 times more costly to find a new member).
  • The more knowledge you accumulate about your members, the more likely you understand what they need and want, the more likely they are to be loyal to you and not go elsewhere.
  • Statistics show that only 50% of members ever redeem their loyalty points and in some Businesses, it as low as 30%. The points are usually redeemed well after the sales are made so the Business/Venue has the use of the money during this time. SwiftPOS displays how many points are owing to members so any future debt can be easily calculated.

 

While it's not too difficult to implement a customer loyalty program there are a number of reasons why loyalty programs fail to succeed. Please see the list before for the most common causes of a failed loyalty program.

 

  • Lack of commitment by management.
  • Lack of staff training.
  • Lack of resources to correct any mistakes that may be made and maintain proper reporting.
  • The members don???t understand the benefits of the program or it is not clear.
  • It doesn???t offer rewards that will motivate increased response and build retention.
  • Lack of use of the SwiftPOS Back Office Suite to measure the success of the loyalty program.
  • Everybody in the organization not knowing about the program and how it works.
  • The Business/Venue expects too quick a return on a long term investment, which takes time to produce measurable results.

 


SwiftPOS Loyalty Features

 

There are a number of loyalty features currently available in SwiftPOS which can be used to encourage regular visits to your Business/Venue.

 


Rewarding/Redeeming Loyalty Points

 

Rewarding member Loyalty Points is handled by SwiftPOS. Set up the loyalty conditions from within SwiftPOS and have points applied to transactions when they are being processed into SwiftPOS.

To setup loyalty conditions in SwiftPOS please follow these instructions:

 

  • Open the Products menu and select Category/Groups Setup.
  • Select the Category tab then select a Category and press Full Edit.
  • Enter a value into the Points per dollar.
  • Open the Administration menu and select Locations.
  • Enter the relevant multiplier for each Location. (i.e. 0 will not give points at all, 2 is double points)
  • Open the Members menu and select the Member Classifications.
  • Enter the relevant multiplier for each Classification. (i.e. 0 will not give points at all, 2 is double points)
  • Enter a points redemption value which is equal to the value entered, e.g.: 100 = 100 points per dollar redemption ratio. Please see the section below for recommended values.

 


Recommended Settings

 

The tables below some recommended setting that can be used when determining loyalty conditions. Please note that loyalty generally has to be more than 1% turnover to ensure that there is enough incentives for the members to bother using their cards. The tables below show you that there is a formula for Rewarding Members with points and a formula for Redeeming Points that would equate to the dollar value of the goods. Both formulas can be changed to fit in with your existing loyalty or showcase system.

 

 

Loyalty condition in Categories.

Redemption (Points per Dollar) in Location Groups (Venues)

2% of turnover towards customer loyalty program

Earn 2 points for every dollar spent at the POS

50 points per dollar. E.g.: a drink worth $1.80 will cost 90 points.

1% of turnover towards customer loyalty program

Earn 1 point for every dollar spent at the POS

100 points per dollar. E.g.: a drink worth $1.80 will cost 180 points.

 

 

Loyalty condition in Categories

Redemption (Points per Dollar) in Location Groups (Venues)

2% of turnover towards customer loyalty program

Earn 4 points for every dollar spent at the POS

100 points per dollar. E.g.: a drink worth $1.80 will cost 180 points.

1% of turnover towards customer loyalty program

Earn 2 points for every dollar spent at the POS

200 points per dollar. E.g.: a drink worth $1.80 will cost 360 points.

 


Examples

 

Setup Points Per Dollar in Categories = 1

Setup Redemption Ratio in Location Groups (Venues) = 100

Purchase an item for $10 with $10 Cash adds 10 pts. to Member

Purchase an item for $10 with Redemption deducts 990 pts. from Member

Purchase an item for $10 with $5 Cash + Redemption deducts 490 points from Member

 


Adjusting Member Points

 

It is only possible by using the Points PLU 19991 in a sale.

The "quantity sold" will trigger adding or negative points will take away points when the sale is processed.

Do a negative Qty for PLU 19991 to the Member to remove points or a positive Qty for PLU 19991 to add points.

 


Points Rewarded when doing Redemptions

 

Note : Points are given when doing redemptions by default. EG if you have a redemption ratio of 100 points per dollar and the Categories are set to 1 point per dollar. If you sell a Product for $10 and the client chooses to redeem the item on points, the points are calculated as follows:

 

10 - (10 * 100) = -990 points to redeem.

Where the 10 is the points for the item and the 100 is the redemption ratio

 

Redemptions

 

 

1

point/$

 

 

100

point/$ Ratio

 

 

 

 

 

 

Sale Amount

Cash Amount

Redemption Value

Was previously

$ 100.00

$ -

-9900

10000

$ 100.00

$ 10.00

-8900

9000

$ 100.00

$ 90.00

-900

1000

 


Related Topics

 

  1. Accounts
  2. Barrel Draw Promotions
  3. Customer/Members
  4. Global Preferences - Member Settngs
  5. NetPOS.Net
  6. POS - Charge / Redemption Operation
  7. POS Configuration Index - Account/Customer/Member Configuration
  8. POS Operation
  9. POS Operation Index - Account/Customer/Member Features
  10. Vouchers/Discounts