Customer Loyalty Club
Reference Number: AA-00233 Views: 6873 Created: 2012-07-23 15:39 Last Updated: 2014-10-22 16:36 0 Rating/ Voters

Customer Loyalty Clubs

Loyalty clubs allow you to reward customers with coupons and special pricing based on purchases. You establish the criteria and set the reward for the various clubs. You can have 3 different Loyalty Clubs. This article will demonstrate 2 types of clubs and then explain how to see the results. 

  • The first Loyalty Club we are creating will award points for the amount spent by a customer.
  • The second Loyalty Club will be set up so that members are required to purchase membership.

The customer loyalty templates can be found under Customer Information=>Loyalty Clubs

Note – The purchase of a Gift Certificate will award points to the purchaser. If you want the recipient to be awarded the points, then you must specify otherwise by using either “in these categories” or “with this keyword”.

Note – If you use Customer Type please be sure to mark the column "Show As = Adjusted Price" if you want the customer to continue earning points toward a club. This applies if you have chosen to only reward Non-Discounted Items.




Here is the screen we are going to be working with. As you can see there is a lot of flexibility on how a Loyalty Club can be set up. The wording we have used may not be exactly what you currently use but you will find that this screen can give you any number of options to adapt to the way you currently work.

We will now go through each field showing all the options available.

  • You will need to Name your club, we will call ours Customer Reward for this example.
  • Disable – This field is generally N. If you decide to discontinue this club then you would mark it Y.





Loyalty Club #2: Not Required to purchase a Membership.

  • This Club Applies To – You can select which type of customers this club applies to, a specific Customer Level for members of this club. If you choose to do it this way you will need to make sure that any club member has the correct Customer Type selected in their Customer Record. We will use All Customers for our example.

  • Customers with Keyword – You can add a keyword to a customer record to make them a member of the club. We will leave this field blank.
  • OR this can be a combination of both the above.
  • Members earn 1 point for every – The criteria for these rewards are based on points earned. Select the option that best suits your club. You may choose that each point represents one dollar ($1.00).

    

 


  • Certain Amount Spent – Based on total dollars spent. We will use $50.
  • Item Purchased – Based on the purchase of a specific item.
  • Sale – Based on the number of transactions. This choice can be used to calculate a percentage of the total amount spent for a specific number of purchases. 
  • Select Type of Sales Items to Include – Here you have the option to include all items or only Non-Discounted items. We will be using Non-Discounted Items.

Note – If you choose non-discounted items only and you will be changing the Customer Type (Artisan Users Manual Chapter 6.3.4) be sure that when you set up the Customer Type that you select for “Show As” = “Adjusted Price”. The new pricing for this customer will then not be considered discounted by Artisan and the customer can continue to earn points.


You can choose to only include specific Categories or you can only include Items with specific keywords. E.G. You can offer a free Class for every 4 purchased. This would be setup as a separate club and you can do this by Category if all classes are in the same Category.

This will allow you to only issue rewards on sales over a specific amount. This example we have selected $10 as the minimum amount of the pre-tax total.

Customer ID – If you select Not Required then all customers will belong and earn points in this club.

If you set customer ID to be Required this will give you the option to make customers bring their customer ID cards to be able to earn points. The customer needs to be selected by customer ID at the POS. We will select Not Required.


Now we will deal with what happens to points and what reward a customer receives and at what level they receive this reward.
You can use Option 1 or Option 2 or you can use a combination of both. In our example we chose both options.



Option 1

  • Change Customer Type To – You can set up different pricing levels through Artisan using customer levels (Artisan Users Manual Chapter 6.3.4). For Example you could have a level called Reward and set up the pricing level for Reward to be 5% discount off of the regular retail price. All items will then have a 5% discount when entered in the Cash Register under this customers name.

Note – If you use Customer Type please be sure to mark the column “Show As” = “Adjusted Price” (Artisan Users Manual Chapter 6.3.4) if you want the customer to continue earning points toward a club. This applies if you have chosen to only reward Non-Discounted Items.

Select the number of points that need to be earned to change the Customer Type so that they will receive the discount you have chosen to give these customers.

Earlier we made the option to issue 1 point for every $50 spent and now we are saying that you need to earn 5 points (you will earn 5 points after spending $250). After you reach the $250 mark then the customer type will be changed to Reward and any future purchase will have the discount associated to this customer type, in this instance it is 5%.


   




Option 2

  • Issue a Coupon – You can issue a coupon for a specified discount every time a customer reaches a certain number of points. In this instance a 10% coupon will be issued for every 4 points earned over the initial 5 points.

OR

  • Issue a Coupon - You can issue a coupon for a percentage of the total amount spent for the number of purchases specified. In this instance you earn 1 point for every sale and receive a coupon for 10% of the total amount spent in the previous 6 sales.


  • Message 2 – This message will appear at the bottom of your coupon that will print on your receipt printer.
  • Form File – The form file is COUPON40.AFD, this is the file that has the layout of your coupon. This is the default form. This can be found in your Artisan Data folder and information on editing this form can be found in Appendix of the Artisan Users Manual.
  • Coupons Expire – Select the number of days you want the coupon to be valid for. A value of 0 in this field means that coupons don’t expire. We chose 90 Days.


This is the Loyalty Club we have created.

What we have set up is that all customers who have a customer record will receive 1 point for every $50 of non-discounted items purchased. Once they have 5 points their customer type will be changed to Reward. For every 4 points earned over the original 5 points they will be issued a 10% coupon which will expire after 90 days.

Customer Types (Price Levels)



Please see the Artisan Users Manual Chapter 6.3.4. Here you will find detailed instructions.

From the Main Menu of Artisan - Customer Information=>Customer Types (Price Levels).
Note 
– In the Show As column, if you are excluding discounted items in your Loyalty Club then you should make the selection of Price. This will show the price after discount in the sale.


  





Loyalty Club #2: Required to purchase Membership.

First we will create the Category and Item for membership. Create a Category is going to be called Membership.
Check with your accountant to find out if the sale of a membership is taxable. We are going to set ours to be taxable and will be considered part of our sales.

 

Press F4 for More Info.


When an item in the Membership category is purchased, the customer will receive a specified discount. In this example it will be 5%. To set this up we are going to use Special Handling - Set Customer Type When Sold.

We will then set up this Customer Type or Customer Level to reflect the discount once they become a member.

 

    

We will select Level 3) Member. We have already set this up to have a 5% discount. (see page 5 for details)





Setting up the Item Record

Add a new record, be sure to use the Membership category we have just setup, set your retail price if any. We recommend that you always turn Inventory Tracking off for this type of item.


Now we should be ready to set up our new Loyalty Club where membership is purchased. The only difference with this club is that the rewards will only be applied to customers who have purchased our Membership item, once they purchase this item they will automatically become the Customer Type of Member. So “This club applies to” member. These customers will automatically get a 5% discount as already specified. The rest of the fields in this Loyalty Club can be filled in as described in the previous club.






Making a Sale and Tracking the Loyalty Club in the Customer Record

Now we are going to see how this works in the Cash Register.
Enter the customer name in the Cash Register screen as normal. Then enter the items for the sale, we are using the Test Item of $200.


You can see the Loyalty Club status of any customer by using Shift + F4 from the Cash Register screen or you can go to the More Info screen of the Customer Record you will see the status of this customer in regard to the Loyalty Clubs that they belong to. 


Shift + F4



Customer Record - More Info screen  

 

Once a customer reaches the the criteria to receive the customer reward you will see a pop up screen at the end of the sale informing you of this. In this case Harry Happy has 5 Reward Points earned by spending $550 and his Customer Type has been upgraded to Reward. He will now receive a 5% discount on any future purchases because the Customer Type Reward is to to issue 5% off Retail.

 



In the Customer Record you will see that the Customer Type has been changed from Retail to Reward




Tracking Coupons

Customer coupons can be tracked through Accounting=>Outstanding Transactions=>Store Coupons. Here you will have an option to Include Redeemed Coupons in List – Yes or No.




How to Redeem a Coupon

Coupons are redeemed through the Cash Register screen as a line item. The Item Code is Coupon and already exists in your Artisan Data and is used to track your coupons.
When redeeming a coupon enter the item code Coupon into the Cash Register screen, you will then be prompted for the Coupon number.

Note – Instead of typing the word Coupon in the item code field you can just use the letter C and press enter. See screen shot below.

- You can also enter the Cnnnnnnn (where nnnnnnn is the coupon number as exactly 7 digits, in which case it doesn't prompt you for coupon # separately; however, this case isn't really intended for manual typing).

Enter the Coupon Number and press enter. In this instance the coupon number is 2 and the discount for this coupon is $10. Now finalize the sale as normal. This coupon has now been redeemed.








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