How To - Loyalty Program Basics


The purpose of this guide is to offer advice about the basic loyalty programs that can be setup in Loyalty. It also details the added extras that can be added to each type of program.


Currency Program

In currency programs, customers get direct currency for the amount they spend at a business. This program is straightforward to understand, create and maintain.

When a customer spends at a site, then the customer receives 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 an 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 applying on the day after registration.

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


Spend Conversion

When spend is converted to points there are two options:


  1. Transaction amount

    When Transaction amount is used any remaining spend is not carried forward to the next transaction.


    2. Example:

    Transaction: Total Spend £1.95

    £1 converted to 1 point, 95p is disregarded


  2. Carryover remainder

    If the “carry over remainder” setting is used any remaining spend is carried forward to the next transaction.


    3. Example:

    Transaction 1: Total Spend £19.85

    £19 converted to 19 points, 85p is carried forward

     

    Transaction 2: Total Spend £3.20

    £4 converted to 4 point (85p+£3.20p = £4.05), 5p carried forward to the next transaction


Spend to points, points to rewards

A points to rewards program is also one of most common programs as it is simple to understand - every time a customer makes purchases, they gain a certain amount of points, depending on the size of their purchase.

These points are translated into a free, or discounted, item. A points to rewards program it is a good core benefit for a program as it can be an effective way to increase transaction amounts, but unlike a currency reward the customer gets to pick their reward from those available.

The rewards offered to customer can be core rewards or could be included for short periods of time this can then be used to market or create enthusiasm for the program.


Example:
£1 spend = 1pt, 200pts = free starter, 500pts = free main


Extras that can be added to this type of program:

  • Periods of bonus points (Normally 5pts per £1, Tuesday afternoon between 1pm and 4pm 10pts per £1)

  • A Different rate of points based on product division (5pt per £1 Drink, 10pt per £1 Food)

  • A Different rate of points based on site (5pt per £1 London, 10pt per £1 Edinburgh)

  • Bonus points on selected items, category, or subcategory (100 points bonuses for buying a glass of red wine)

  • Bonus points on registration (10pts on registration), this reward can be delayed applying on the day after registration.

  • Bonus points for checked out LiveRes reservation checked out (50pts for every 2 reservations)

  • Tiered card action (Normal members 5pts per £1, VIP members 10pts per £1)


Spend Conversion

When spend is converted to points there are two options:


  1. Transaction amount

    When Transaction amount is used any remaining spend is not carried forward to the next transaction.


    Example:

    Transaction: Total Spend £1.95

    £1 converted to 1 point, 95p is disregarded


  2. Carry over remainder

    When carry over remainder is used any remaining spend is carried forward to the next transaction.


    Example:

    Transaction 1: Total Spend £19.85

    £19 converted to 19 points, 85p is carried forward

     

    Transaction 2: Total Spend £3.20

    £4 converted to 4 point (85p+£3.20p = £4.05), 5p carried forward to the next transaction


Expiry

When points are added to a loyalty card, they can be stamped with an expiry date. If the points are not redeemed (in part or fully) before the expiry date, then the loyalty platform will expire the currency.

The expiry date is calculated from the transaction date of when the points are added. There is a transaction log of all expired points and the overall program liability is reduced accordingly.


Example
Setting: 12 months Expiry

A customer spends £30 on 1st of Oct 2018, the customer will earn 3 points for this transaction. The 3 points will be stamped with an expiry date of 2nd Oct 2019.

If the customer does not redeem the 3 points, then they will automatically expire in the early hours of 2nd Oct 2019.

Stamp card program

Stamp card programs are most common for low value, commonly purchased items as they can incentivise regular visits or build a habit to visit. They are not that effective to increase transaction spend as, by their nature, stamp car programs are transactional, making it hard to create ongoing marking or enthusiasm; they are better suited towards a fast service business.

When a customer purchases one of a predefined set of products they are then rewarded with one stamp. After meeting a threshold of stamps then they are exchanged for a reward.


Example:
Buy 5 coffees get the 6th free.


Extras that can be added to this type of program:

  • Min spend of an item (need to spend over £2.00 on a coffee for it to qualify)

  • Tiered card reward (Normal members 5 coffee’s 6th free, VIP members 3 coffee’s 6th free)


Expiry

When points are added to a loyalty card, they can be stamped with an expiry date. If the points are not redeemed (in part or fully) before the expiry date, then the loyalty platform will expire the currency.

The expiry date is calculated from the transaction date of when the points are added. There is a transaction log of all expired points and the overall program liability is reduced accordingly.


Example
Setting: 12 months Expiry

A customer spends £30 on 1st of Oct 2018, the customer will earn 3 points for this transaction. The 3 points will be stamped with an expiry date of 2nd Oct 2019.

If the customer does not redeem the 3 points, then they will automatically expire in the early hours of 2nd Oct 2019.

Rewards for Visits

When a customer swipes their card a fixed number of times they can be rewarded with an item or discount. The number of visits is deducted if a reward is redeemed.


Example:
Visit 3 times for a free starter.

Rewards for Reservations

When a guest is in a loyalty program and makes a reservation, their Loyalty Number will automatically be added to the LiveRes reservation (if the same email address is used). When the Aztec bill is been paid, Tables will inform Loyalty to add a reservation stamp for this guest. The guest can then be rewarded after a fixed number of reservations.


Examples:
1. A free bottle of wine for every 5 completed reservations
2. 50 bonus points for every 2 completed reservations Additional Rewards

The following rewards can be included to any of the above programs, and can be either single or multi use. Rewards can also be made available at all or only restricted sites.

  • Discount in Aztec (e.g. 10% off food)

  • Promotion in Aztec (e.g. BOGOF or multi-buy promotion)

  • Item for Free or fixed price (e.g. Bottle of Becks for £2.00)

  • Reoccurring Discount, promotion or Item every Day, Week or Month (e.g. Free coffee every month)

  • Discount, promotion, or item x day before and y days after the customer’s birthday. (e.g. Free beer or glass of wine, 7 days before or 10 days after birthday)

  • Reward for registration (e.g. Glass of Prosecco on registration).


Communicating to loyalty members

Loyalty does have the option to email a member on successfully registering a loyalty account, though note that the primary role of loyalty is to manage and track transactions, actions, and rewards, and not to be a marketing platform to communicate to customers about the loyalty program.

When a customer gains a new reward, both Campaigns Plus or the white label app do not currently support informing a customer of the new reward by email, SMS, or push notification.

The white label app can be used to display a customer current balance (points and currency) and the current rewards they have access to. The rewards displayed within the white label app are for all sites and not just the site selected within the app.

There are a full set of transaction, customer & balance exports are available via SFTP, and if you wish to import this data into your marketing platform, please contact your account manager.