Tip #074 – Customer Loyalty Programs

Tip #074
Customer Loyalty Programs

Everyone knows that customer loyalty programs work.  Some work better than others but they all do work to some extent.  Customers will come back and purchase from your shop if you promise them a pot of gold at the end of the road.

flowerSoft allows you to implement 2 different kind of loyalty programs.  One is based on the number of purchases a customer makes and the other is based on the Dollar amount a customer spends throughout the course of 12 months.

The program based on the # of purchases a customer makes, the most popular, works like this:

Once you tell flowerSoft that you are implementing  the loyalty program, which you do through the Operating Defaults menu, flowerSoft will start keeping track of all the purchases customers make.

Please note that you have to tell flowerSoft that you want to implement a discount program by entering a Y in that field.

You must also select the type of program you want to implement, in this case the “Frequent Buyer Discount” program.
You must also indicate how many purchases are required before the credit is issued.  In this example, the # of purchases required is 10.
You have the option to include or exclude outgoing order from the program.  Incoming orders are automatically excluded.

flowerSoft also allows you to credit the customer with a referral.  If you want to credit the customer’s frequent buyer program with any referrals he makes, you must indicate so by entering a Y in the field and also indicating how much each referral is worth towards the customer’s # of purchases before credit.  In other words, if a customer refers another person to your shop and they become a customer of yours, you may choose to credit the customer that referred the new customer with 1/2 of an order or 1/4 of an order or a full order towards his goal of 10 orders.

You also have to tell flowerSoft whether the dis count you are offering is an average of the product amount of previous 10 orders or a set amount.  In the example above, the discount is  defined as a set amount of $10.  This means that on the customer’s 11th purchase, he or she will receive a discount of $10 on the order.

If you had opted to offer a discount equaling the average product amount of the previous 10 orders, flowerSoft would have also calculated that discount for you automatically.  For example. let’s say that the customer’s previous 10 orders had a product amount of $: 30, 35, 40, 25, 50, 30, 45, 25, 30 and 50.  The discount amount on the 11th order would have been $36.

As soon as you start taking an order from a customer that qualifies to receive a discount based on the # of purchases he or she has placed, flowerSoft will display the following screen:

At this point you have the option not to apply the discount to the current order.  As you can see on the screen shot above, this customer has 11 credits available, so at some point the discount was deferred.  Now that we are applying the discount, the customer will still have 1 credit available towards his or her next loyalty discount.

Once you continue with the order, flowerSoft will inform you that it has indeed applied the discount to the order.

So that is basically how the frequent buyer program based on the # of customer purchases works.

Remember that you have the option to apply dis program to all your customers or just a select few.

On the next post, we will explain how the frequent buyer program based on purchasing levels works.levels works.

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