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Business Case: Loyalty Program

The Product:

A rewards-based loyalty program offered by a company to customers who frequently make purchases.

Example: Starbucks Rewards

Starbucks rewards

The Problem:

You want to attract more clients, to get more information about your buyers, and to stimulate sales.

The Solution:

A rewards-based loyalty program when:

  • Each customer is a registered user in the system providing his personal details to activate the account
  • Each purchase of the client is recorded
  • You can set the number of rewards points for each level of purchase (for example $10 = 1 star)
  • When User gathers the determined number of stars, he can exchange them for some goods or services from your company or from the network of partners.

  • Client makes their first purchase at the Merchant’s store and receives a loyalty card.
  • Client activates their card on the website or in a mobile app of the Merchant (or a Loyalty Network). Inside the back-office or in the app, a client can check their balance (how many points were collected), check transaction history, check notifications about new promotions, spend collected bonuses, etc.
  • Merchant manages his loyalty program from his back-office:
  1. Merchants can upload lists of goods and clients databases and create different types of promotions
  2. Activates new clients profiles (using cards or other identifiers)
  3. Manages POS (websites or offline POS)
  4. Gets the transaction history.

Market:

It can be a product for one big retailer or a network of merchants, where each Merchant can create its own promotions and manage client cards.