In this scheme, bonuses come to the stage instead of discounts, although the principle of operation remains the same. The buyer purchases goods for a certain amount, and a specified percentage of bonuses from the transaction amount is credited to his account/card. They can be spent on the next purchase or even exchanged for a free product. The material expression of bonuses can be very different - rubles, points, stickers. Another option is the store's own currency, which also has its advantages.
Bonus loyalty program
The advantages of such a system:
If a person regularly goes to the interior designers service email list same store for shopping, then bonuses will be accrued to him constantly, there will be no problems with the program.
The desire to accumulate a lot of rewards will make the customer visit the store more often or spend more money each time, and this is a real business owner's dream come true.
A bonus loyalty program for customers may include a condition such as a limited period of validity, after which the accruals will burn out. In this case, there is an additional incentive to come and use them as soon as possible.
It is unlikely that anyone will guarantee that all issued bonuses will be spent 100%, so some of them will not be spent, the money will not leave the company, and the goods will be sold at the actual price without any discounts.
Disadvantages of such a system:
If the customer has purchased a product that he will need exactly once, or has spent a large amount of money on it, then the bonus program will not work here. Why would the customer need accruals if he is not going to come to you again?
If you complicate the rules of participation in such a loyalty system, it will alienate most consumers. It will turn out that instead of simply accumulating points for a purchase, the client must first perform some actions in a certain order and not make a mistake. The very idea of a reward will disappear.
To control the accrual and write-off of bonuses, you will have to purchase and install additional software.
What do you think, to increase the profit of any company, what is the fastest way to come in second place? Obviously, the first role belongs to the increase in prices. But in second place will be the transition from discounts to bonuses.
A little above we gave an example of buying a product for 9,000 rubles with a 5% discount. Let's try to make the same calculation using the bonus program. The steps are similar: 5% is credited to the customer's bonus card after the first purchase. He will be able to spend it on his next visit to the store. So, let's calculate:
First purchase – 9,000 rubles.
Second purchase – another 9,000 rubles.
Bonus from the first transaction (sent to the card) – 5%, or 450 rubles.
Your company's net profit minus the accrued reward will be: 2,700 rubles (from the first purchase) + 2,700 rubles (from the second purchase) - 450 rubles (points from the first purchase) = 4,950 rubles.
And this is already 8.5, and not 17.5%, as in the first calculation.
True, meticulous readers will ask where the bonuses from the second purchase went. After all, the buyer should receive another 450 rubles on his account, and as a result we have the same discount of 17.5%. This is true. But one of the advantages of the bonus system, if you remember, is the fact that some people will not come, their points will burn out, which will become an incentive to visit the store again.
The question immediately arises: won't consumers run away if all discounts are replaced with bonuses? We answer: nothing terrible will happen to you. Of course, some customers will be lost, but profits will increase.
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By the way, the customers who left you are among the most unreliable, besides, there are not many who want to go to the ends of the earth if the necessary product/service is 100 rubles cheaper there. You shouldn't even think about them.
In order not to feel guilty that your company has lost income, we will, of course, make an amendment. But later. And not for all organizations and markets. For some of them, this cannot be applied at all. In general, each individual case requires an individual approach.