Tracking Sales |
Completed Loyalty transaction |
In general, customer loyalty programs tend to be one of two basic types:
• Cumulative programs, which extend rewards whenever a defined ‘threshold’ is reached, such as ‘receive a 20% discount for every $100 purchased’; or
• Immediate programs, in which the customer receives benefits with every purchase, such as 5% off every purchase.
‘Immediate’ programs are easier to manage because there’s no need to verify the customer’s purchase history in case of disputes.
WordStock enables a store to offer different loyalty programs simultaneously, each of which can have its own incentives. For example, you can have programs for both a ‘Classics Reading Group’ program and a ‘Women’s Studies’ program.
However, only membership type can be used in a given transaction, so we recommend that programs be defined broadly, to minimize customers having to maintain several ‘memberships.’
- Most stores will want to have permanent cards for their customers so that customers don’t have to remember their membership number(s) and store staff doesn’t have to spend a lot of time locating customers in the system.
Cumulative Programs
• A ‘Cumulative’ Loyalty Program has a ‘triggerpoint’ when the customer receives a benefit, such as a discount. Until the triggerpoint is achieved, the customer’s purchases accrue, e.g., ‘save $10 with every $100 worth of purchases.’
• Can be more difficult to manage than Immediate programs because customers may wish to verify that all of their purchase have been tracked if it seems to them that they’re due to receive the program’s benefit.
• Discounts can be either a fixed amount, such as ‘$1.00 off’ or a fixed percentage, such as ‘10%’. You can assign the loyalty benefit to all items sold, or restrict it to specific Products or Sections.
Immediate Programs
• An ‘Immediate’ Loyalty Program doesn’t have a ‘trigger point’; instead, the customer receives benefits, such as a discount, immediately, with every purchase.
• Easier for the store to manage, and for customers to use, than Cumulative programs because tendering immediate benefits eliminates having to ‘prove’ that enough purchases have been made to reach a goal.
• You can define loyalty discounts to be either a fixed amount, such as ‘$1.00 off’ or a percentage, such as ‘10%’.
• You can assign the loyalty to all items sold, or restrict it to specific Products or Sections.
Note: If your loyalty program varies substantially from the two core programs described here, please contact WordStock Sales, 800-753-9673, to discuss custom programming as a possible option.