Tip #075 – Customer Loyalty Programs (Cont.)

Tip #075
Customer Loyalty Programs (Cont.)

The other loyalty program flowerSoft offers is based on the total amount of a customer purchases within the past 12 months.

Obviously, this loyalty program works best if you have been using flowerSoft for at least a year but it can be used at any time.

The first thing to do if you are going to use this loyalty program is to set your discount levels.  To do this, go into the Manager’s menu > Marketing > Frequent Buyer Programs

The first thing you should do is use option R – Re-Calculate YTD Purchases.  If using this program, it is important to use this option at least once a month.  Maybe you should make it part of your statement generating process.

Once you select the option, flowerSoft will re-calculate the YTD purchases for all customers  (really the purchases made during the past 12 months) whether or not they are included in the loyalty program.

Once you select to continue, flowerSoft will start the re-calculation…

and then informs you when it has finished.  The time it takes to re-calculate the figures depends on the # of customers you have and also on the # of invoices flowerSoft has to read through as well as the speed of your system.  However, re-calculation should not take more than a minute or two.

After the YTD re-calculation is done, you should go to option L – Edit/View Level Discounts to set the discount percents you want to offer your customers.
Obviously, the bigger the discount percent, the more inclined your customer will be to participate in the program.
It is a good idea to set it at reasonable points so that it would not seem like an unreachable goal.

Once you select this option, flowerSoft will display the discount levels screen.  Press U to update the figures to your liking.

What the screen above is showing is that if during the last 12-month period (remember to re-calculate every month) a customer has made purchases of $150 or less, they will not receive any discount.  Once the purchase surpass the $150 mark, the customer will start receiving a 5% discount on the product amount of every purchase they make, unless you have indicated that outgoing orders are not to be included in the loyalty program.

Please note that on the level discount loyalty program, the amount of ALL order placed by the customer is included in the purchases figure even if outgoing orders are excluded.  This is an important difference to understand between the two loyalty programs.

In the Frequent Buyer loyalty program, where the customer must reach a certain number of orders before receiving the discount, if outgoing orders are excluded, the order will NOT count towards the # of purchases.

In the Discount Levels loyalty program, even if outgoing orders are excluded, the count towards the YTD figure but the discount will not be offered on outgoing orders.  In other words, even if a customer is entitled to a discount based on the amount of his purchases during the previous 12 months, a discount will not be calculated on outgoing orders if you have indicated that outgoing orders are to be excluded from the discount program.

The above example shows the discount this customer would get based on his or her previous 12-month purchasing history.

Since the customer had purchases of $1,393.20 during the past 12 months, he/she is entitled to a 20% discount based on the figures found on the discount levels  screen (see above).  But note that on an outgoing order, the discount is not offered because we had that setting to “N” in the defults menu.

One last thing, the amounts shown as the total purchases for a customer include delivery and relay charges but do not include any sales tax paid.

That is basically how the Discount Levels loyalty program works.

If you have any questions, please feel free to ask.

3 thoughts on “Tip #075 – Customer Loyalty Programs (Cont.)

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