Chapter 9 - Bonus points: advantages and disadvantages

When starting up a customer club, it is important to have thought through what type of benefits you will have. The welcome and birthday voucher deals with what we call the onboarding programme. This is where you bring in members. The benefits program, on the other hand, should help make your customers/members even more loyal to your store/chain. There are many paths to the goal here. In this article, we give some examples of how this is most often done among our customer clubs, as well as the advantages and disadvantages of the various options.

• Standard bonus ladder - Bronze - Silver - Gold

• Bonus ladder with various benefits

• Bonus program with "Recurring coupon"

• Vouchers when appropriate (without using points)

• Stamp Cards

The standard bonus ladder is inspired by the airline and hotel industries; here you get different discount levels/benefits as you climb the scale. For example: Bronze – 5% discount, Silver – 10% discount, Gold – 15% discount. The qualification period and point lifetime can be asynchronous, but most people choose that these should be equal in duration to 1, 2 or 3 years. A member must then within each qualification period accumulate the necessary points to achieve the same status. You are automatically reduced to the first level and 0 points when the qualification period expires. You must decide whether the member should receive the discount on each purchase, once, or whether they will receive X number of coupons within each level.

• A familiar system for most customers.

• Easy for members to understand.

• You can still give other extra coupons for all members in given campaign periods.

• Fully integrated with all POS systems.

• Fully integrated with our ecomerce integrations.

• If you set a limit on the number of times used, the ladder will stop, then you are not taking care of your big spenders.

• Coupon duration is the entire duration of the coupon (if you reach a level the day before the qualifying period is over, you go down again the next day).

• Customers are not notified when they have reached a new level (SMS).

This variant is quite similar to the Bronze, Silver and Gold levels, but with different names. This model is most often used by online stores so that you can provide a good customer journey experience.

• Easy for members to understand.

• You can still give other extra coupons for all members in given campaign periods.

• Gives customers a sense of an exciting journey with various benefits if they are loyal - THAT generates loyalty.

• Fully integrated with all POS systems.

• Fully integrated with our ecomerce integrations

• If you set a limit on the number of times used, the ladder will stop, then you are not taking care of your big spenders.

• Coupon duration is the entire duration of the coupon (if you reach a level the day before the qualifying period is over, you go down again the next day).

• Customers are not notified when they have reached a new level (SMS).

This means that for every X EUR spent, you get a voucher or percentage discount on your next purchase. For example, for every EUR 200 spent, you get EUR 10 off. If you accumulate many points, e.g. 100, you will be given the choice of using EUR10 off (200 points), EUR20 off (400 points), Eur30 off (600 points) or EUR 40 off (800 points). Then you can easily choose which coupon to use at the checkout. This will of course depend on how much the customer buys for in the next purchase.

• Very easy for customers to understand.

• Generates loyal customers quickly - purchases are exchanged directly for future discounts.

• Easy for employees to explain/sell to their customers.

• Continues ad infinitum.

• Can also create your own coupons/campaigns for periods here.

• Fully integrated with all POS systems.

• Fully integrated with our ecommerce integrations.

• Can only have one recurring coupon.

• Can only have the same benefit in the loyalty program (apart from own coupons/campaigns).

• Customers are not notified when they have obtained a new coupon (SMS).

For example, when holding a sale, you can create a separate campaign that is sent by SMS to all or a segmented group of members. Then you will get valuable statistics on who uses the coupon(s). Even if you have a sale that applies to all members, it can be advantageous to insert a coupon that is registered to the member when purchasing. You will then build up a history of your members, what they shop for, how often, whether they shop only on sale, etc.

• Valuable statistics in relation to the shopping patterns of your members. This allows you to run an even more relevant campaign next time, and it increases loyalty.

• You can set up coupons/campaigns ahead of time, which are then automatically activated when the time comes.

• SMS's go out as when you desire, as you configure in Diller.

• Fully integrated with all POS systems.

• Fully integrated with our ecommerce intetgrations.

• Have to create a coupon in Diller that can appear in the online store or at the POS. However, this is done very quickly, so we would probably say that the advantages clearly outweigh this disadvantage.

Most people are used to stamp cards. For example, in pet shops when buying animal feed, at the baker when buying bread/coffee, filling gas bottles, or when servicing bicycles. You can pick up a stamp card directly at the POS, and the member can keep track of his status via his member's page. Example; "get every 8th pet food for free" or "get a discount of EURX/percent on every Y bag" (for example, get a EUR15 discount for every tenth bag of pet food.)

• Digital stamp cards mean that members do not have to remember paper cards (if the membership is for someone else in the household, they can just enter their mobile number to give a stamp at the same place).

• If you do not have a bonus point model, some have chosen to use stamp cards instead. For example, for every ten stamp (one stamp for every EUR25) you get a EUR15 discount. This corresponds to a EUR15 discount for every EUR250 spent on a recurring coupon.

• Supported with our Magento integration

• Not fully integrated with all POS systems.

• Not fully integrated with all ecommerce (can show status but not used in the online store).