Loyalty programme
A loyalty programme is a scheme in which a returning buyer earns points, discounts or other benefits from their purchases, so that they buy from the same place next time.
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What does Loyalty programme mean?
The most common form is collecting points: every amount spent earns points, and the points can be redeemed on a later purchase. Other companies use tiers (silver, gold), or make every tenth visit free.
A loyalty programme works when the buyer understands how many points they have and what they can be used for. Just as important on the company's side is that the points of a cancelled order or a returned product are taken back, or the programme pays for a purchase that in the end never happened.
Why does it matter to a small business?
For a small shop or service a returning buyer costs less than a new one: you do not have to find them with ads. A loyalty programme gives a reason to come back, and because the points are tied to the customer, the company also sees who buys regularly and who has stopped.
What does it look like in practice?
Details
Suppose a coffee roaster's online shop credits points after every paid order. A buyer returns a parcel; with the refund, the points earned on that parcel come off their balance too, so the programme rewards only what they actually kept.
How does HelloCRM handle it?
Details
In HelloCRM's Webshops module loyalty points are earned on a paid order and taken back on a cancellation or a return. Buying a gift card earns no points, and neither does the part a gift card paid: a forint counts once, when the card is spent.
Module: Webshops (paid module, price coming soon).
A CRM for small businesses in Hungary
HelloCRM is an online CRM made in Hungary for small and mid-sized businesses there, in Hungarian and English: the core CRM is free for good, with no time limit and no card, and it can be tried without signing up in a demo company full of example data.
Questions
What is Loyalty programme, in one sentence?
A loyalty programme is a scheme in which a returning buyer earns points, discounts or other benefits from their purchases, so that they buy from the same place next time.