A loyalty program’s structure depends on how often customers shop, which products they choose and what motivates them. Points and tiers are possible mechanics through which more purchases earn greater rewards.
Stores can track repeat purchases. When reviewing financial metrics, account for discounts and returns: they affect net sales and profit margin.
Points and tiers: factors to consider
Consider three factors when choosing a program structure:
- how often customers make purchases;
- which products they buy;
- what motivates them to buy.
A points or tiers program can be designed so that customers receive greater rewards as the number of their purchases increases. The name of the mechanic alone is not enough to make a choice: consider it alongside purchase frequency, products and customer motivation.
Which purchase data to review
Stores without a subscription model track how often customers return to make another purchase.
In a standard customer cohort analysis report, customers are grouped by the date of their first order. This is a way to group customers according to when their order history began.
Account separately for discounts and returns when reviewing net sales and profit margin. Both factors affect these metrics.
Reviewing purchases and bonus activity in Torgsoft
In Torgsoft, you can review purchasing activity in the “Customer Purchase Analysis” menu. This feature is described on the customer accounting software page.
For bonuses, you can review activity by date of use and the product paid for with bonuses. This feature is described on the store sales analysis page.
Confirming discount club membership
Torgsoft’s club discount system specifies an amount and a period for confirming membership. The owner sets these parameters. During the specified period, the customer must make purchases totaling the set amount.
These settings apply to the discount club for customers.
Go back to the previous step