Loyalty Programs

Introduction

In currency programs, customers get direct currency for the amount they spend at a business. This program is straightforward to understand, create and maintain. It is a good core benefit for a program effective way to increase transaction amounts, but it is very transactional and is hard to develop ongoing marketing or enthusiasm. It is better suited towards older customer base.

 

When a customer spends at a site, then the customer receive a percentage back. Example: £1 spend = 0.05p reward (5% return)

 

The currency balance then builds up and can be redeemed by the customer at any point. The currency balance can be set with expiry date from when the currency is added to the card for that transaction.

 

Extras that can be added to this type of program:

A different rate of return based on product division (5% Drink, 10% Food)

Periods of enhanced rate of return (Normally 5%, Tuesday afternoon 10%)

Bonus currency on registration (£5 on registration), this reward can be delayed to apply on the day after registration.

Tiered card action (Normal members 5%, VIP members 10%)

Spend Conversion

When spend is converted to currency there are two options:

 Transaction amount

 Carryover remainder

For example, a customer will be credited £1 currency for every whole £10 spent.