Club discount system

How to create your own closed club and retain customers

The VIP club or closed club is aimed specifically at retaining customers and encouraging them to make purchases. In this type of loyalty program, club members are given significant privileges, but you can join the club only by fulfilling certain conditions.

If we are talking about a store, then the business owner is interested in the number of purchases a customer makes and the frequency — the period within which they are made.

Club discount system — motivation to buy more and more often

To implement such a scheme in Torgsoft, the additional option Club Discount System is intended. It automatically tracks customers’ club membership by the following characteristics:

• Discount percentage. The percentage of the fixed discount that customers receive when joining your closed club.
• Initial accumulation amount for joining the club. When a customer buys goods in your store for the specified amount, the program will offer to include this customer in the club.
• Initial accumulation period. The initial accumulation amount must be reached within the time you set. This encourages customers to buy more.
• Confirmation amount of club membership. The purchase amount a customer must make in order to use the discount and continue being a club member.
• Confirmation period of club membership. The period during which the customer must make purchases for the amount required to confirm club membership.

How the club discount system works in a store

The store issues customers a discount card with a fixed discount. The customer buys goods in your store, and the amount is automatically accumulated on the card. To become a member of the discount club, the customer must accumulate the amount specified in the conditions within the given period.
 
If the customer accumulates the required amount, they become a member of the closed discount club and receive a larger discount than regular customers. If the customer does not come to the store for a long time and buys nothing, then they do not reach the required amount and their membership in the VIP club is canceled. After that, accumulation starts again.
 
Every day, the Torgsoft accounting program checks whether customers meet the specified characteristics and offers a list of those who have fulfilled the conditions for joining the club and those who have not and should be excluded from the club. The decision on joining or exclusion is made by the store owner, administrator, or salesperson.
 
From a marketing point of view, only 4 settings of the «Club Discount System» option open up a wide field for influencing customers. For example, you can grant club membership for a small accumulation amount but retain customers in the club under stricter rules. Or set loyal accumulation amounts but impose strict time limits. The decision on which amounts and terms to set is made by the business owner based on sales analysis, customer activity, and set goals.
 
Requirements for the additional option to work

• Torgsoft Ultra or Terminal license, starting from version 7.6.4 (DB 354)
• Additional option «Club Discount System» and configuration of closed club conditions.