{"id":2548,"date":"2020-01-16T09:24:08","date_gmt":"2020-01-15T21:24:08","guid":{"rendered":"http:\/\/demo.bdsaccountants.co.nz\/?p=2548"},"modified":"2020-01-16T14:22:09","modified_gmt":"2020-01-16T02:22:09","slug":"loyalty-reward-systems","status":"publish","type":"post","link":"https:\/\/www.bdsaccountants.co.nz\/resources\/loyalty-reward-systems","title":{"rendered":"Loyalty &#038; Reward Systems"},"content":{"rendered":"<h1 style=\"text-align: left;\">Overview<\/h1>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Introduction<\/h2>\n<p style=\"text-align: left;\">Loyalty and rewards systems are a very real part of customer service in a modern business.<\/p>\n<p style=\"text-align: left;\">Depending on the type of business you conduct, you may use one, or a combination of systems.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Contents<\/h2>\n<p style=\"text-align: left;\">This guide contains the following topics:<\/p>\n<p style=\"text-align: left;\"><a href=\"#Wia\">What is a loyalty system?<\/a><\/p>\n<p style=\"text-align: left;\"><a href=\"#Types\">Types of systems and rewards<\/a><\/p>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: left;\"><a id=\"Wia\"><\/a>What is a loyalty system?<\/h1>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Definition<\/h2>\n<p style=\"text-align: left;\">A loyalty system is a system whereby you encourage your clients to stay loyal to your brand and business.<\/p>\n<p style=\"text-align: left;\">Many businesses refer to their system as a \u2018club\u2019.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Encouraging Loyalty<\/h2>\n<p style=\"text-align: left;\">You naturally encourage loyalty from your customers by providing:<\/p>\n<ul style=\"text-align: left;\">\n<li>Excellent service<\/li>\n<li>Quality products and workmanship<\/li>\n<li>Fast turnaround times<\/li>\n<li>Accurate work and information<\/li>\n<li>Reasonable prices<\/li>\n<li>Sound advice<\/li>\n<li>A real relationship<\/li>\n<li>Trustworthiness<\/li>\n<\/ul>\n<p style=\"text-align: left;\">However, in a competitive day and age you may need to reward your clients as well as simply offering these qualities.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Referral Systems<\/h2>\n<p style=\"text-align: left;\">You may also want to reward clients who refer others to your business.<\/p>\n<p style=\"text-align: left;\">A formal referral system will ensure that clients who recommend your services are rewarded for their trouble.<\/p>\n<p style=\"text-align: left;\">Common types of referral rewards include:<\/p>\n<ul style=\"text-align: left;\">\n<li>Free services<\/li>\n<li>Subscription costs refunded<\/li>\n<li>Gifts<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: left;\"><a id=\"Types\"><\/a>Types of systems and rewards<\/h1>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Loyalty stamp cards<\/h2>\n<p style=\"text-align: left;\">This is a very low-cost loyalty card system which is common and works well in food service and retail.<\/p>\n<p style=\"text-align: left;\">A business card sized card is made up from heavy grade paper with squares on the back to be clipped or stamped.<\/p>\n<p style=\"text-align: left;\">For every predetermined amount a client spends, a stamp is given or a square clipped and once the card is full the client earns a reward.<\/p>\n<p style=\"text-align: left;\">Typical rewards:<\/p>\n<ul style=\"text-align: left;\">\n<li>A free item e.g. cup of coffee<\/li>\n<li>A store credit e.g. $50 off the next purchase<\/li>\n<\/ul>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Requires little setup<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Customer details not often recorded<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Baker\u2019s Delight<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Loyalty software with swipecard<\/h2>\n<p style=\"text-align: left;\">With an integrated loyalty software system, customers are given plastic loyalty cards which are linked to a customer database. This approach suits larger retail and wholesale businesses.<\/p>\n<p style=\"text-align: left;\">The cards are scanned or swiped with each purchase, purchases and amounts are recorded, and details can be entered or changed at point of sale.<\/p>\n<p style=\"text-align: left;\">Customers earn points or are given rewards at certain milestones e.g. $250 worth of purchases.<\/p>\n<p style=\"text-align: left;\">Typical rewards:<\/p>\n<ul style=\"text-align: left;\">\n<li>Gift vouchers<\/li>\n<li>Store items<\/li>\n<\/ul>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Integrated with client database<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Potentially expensive and requires staff training<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> PostiePlus<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Instant voucher<\/h2>\n<p style=\"text-align: left;\">Some businesses prefer to reward their customers instantly by giving a voucher as soon as the transaction is complete. This works well in retail.<\/p>\n<p style=\"text-align: left;\">This is an excellent way to encourage repeat business.<\/p>\n<p style=\"text-align: left;\">For example every customer who spends over $200 receives a $20 voucher to use with their next purchase.<\/p>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> This approach requires little setup.<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Customer details are not often recorded.<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Don Bayliss<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Birthday reward<\/h2>\n<p style=\"text-align: left;\">Many businesses record customer birth dates and send the customer a voucher or offer as a birthday present the month of their birthday.<\/p>\n<p style=\"text-align: left;\">This system not only works well in a retail environment, but also in food service or entertainment.<\/p>\n<p style=\"text-align: left;\">A report is run once a month and every customer with a birthday in the coming month is sent a voucher or offer, irrespective of purchase history.<\/p>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Relatively easy to set up<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Customers not rewarded for increasing purchases<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Breakers Cafe &amp; Bar<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Trade\/bulk discount<\/h2>\n<p style=\"text-align: left;\">Many wholesale businesses use a trade\/bulk discount system in which the customer signs up as a trade customer and in return receives a permanent discount and special offers.<\/p>\n<p style=\"text-align: left;\">This system often uses a loyalty card system similar to a typical retail business.<\/p>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Appeals to repeat business for large quantities<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Applicable to a select type of business<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Placemakers<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Affinity programme<\/h2>\n<p style=\"text-align: left;\">This is an advanced loyalty card system where the customer climbs through ranks depending on amount and frequency of purchases, e.g. Bronze, Silver, Gold, Platinum etc.<\/p>\n<p style=\"text-align: left;\">The customer not only receives regular reward benefits, but special offers, further discounts, insider information, event invitations and also the prestige which goes with having a \u2018gold card\u2019.<\/p>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Encourages an elite view toward loyalty<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Requires much more organisation and planning in relation to rewards and events<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Overland Footwear<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">Referral reward<\/h2>\n<p style=\"text-align: left;\">A referral reward is where a business rewards both the referring customer as well as the new customer. This is a very easy and effective way to bring in fresh customers.<\/p>\n<p style=\"text-align: left;\">This is a great reward programme for a service provider, however works well with retail also.<\/p>\n<p style=\"text-align: left;\"><strong>Pro:<\/strong> Brings in new customers<\/p>\n<p style=\"text-align: left;\"><strong>Con:<\/strong> Requires a double-reward<\/p>\n<p style=\"text-align: left;\"><strong>Real life example:<\/strong> Sky TV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview &nbsp; Introduction Loyalty and rewards systems are a very real part of customer service in a modern business. Depending on the type of business you conduct, you may use one, or a combination of systems. &nbsp; Contents This guide contains the following topics: What is a loyalty system? Types of systems and rewards &nbsp; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[78,135,74],"tags":[],"yst_prominent_words":[145,265],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Loyalty &amp; Reward Systems - BDS Chartered Accountants<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/demo.bdsaccountants.co.nz\/resources\/loyalty-reward-systems\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loyalty &amp; Reward Systems - BDS Chartered Accountants\" \/>\n<meta property=\"og:description\" content=\"Overview &nbsp; Introduction Loyalty and rewards systems are a very real part of customer service in a modern business. 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