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Introduction to the Rewards Program
Shoppers can be encouraged to frequent your store more often, spend more, and refer others to your business with the added incentive of a well-structured 'Rewards Program'—essentially a 'rebate' on their purchases. This creates a win-win situation for both the business and its customers, ensuring repeat visits and fostering loyalty.
Cost Structure of the Rewards Program
The cost of a Rewards Program is generally borne by the shop itself. Importantly, each consignor receives his or her full share of sales proceeds, ensuring that the rewards structure does not detract from their earnings. The system is designed to encourage more significant purchases and increased customer satisfaction.
Understanding the Financial Impact
The actual cost to the shop would not be the full amount of reward points earned but only the dollar value of the points redeemed. This means that the financial burden is manageable and allows businesses to plan their budgets accordingly.
Measuring ROI of the Rewards Program
Unlike some advertising campaigns where the tangible benefits may be dubious if not completely unknown, the ROI (Return on Investment) of a Rewards Program can be estimated reliably through the number of points earned and redeemed. This clear tracking enables businesses to make informed decisions about their promotional strategies.
Benefits of Incentivizing Purchases
In other words, it makes good business sense to give up 2% of sales in rewards to potentially increase overall sales by 10%. The long-term benefits of cultivating a loyal customer base can far outweigh initial costs.
Addressing Customer Inquiries
"Won't offering such an incentive increase the number of calls to the shop?" Answers: 1. With BCSS, virtual patrons can easily view that information from any Internet-connected computer or device. 2. Make it a store policy to require patrons to visit the store to acquire that information. This not only utilizes the feature to increase store traffic but also enhances customer engagement.
Software Configuration for Rewards Programs
Setting up the Rewards Program in BCSS Diamond or BCSS Virtual is straightforward. Navigate to the sales tab in the program setup and check the 'Enable Rewards' option. You will also need to enter a 'Rate per $ Purchased' to define the rebate percentage (for example, entering .01 would set it at 1%). This simple setup enables seamless integration into your existing sales process.
Automatic Tracking of Rewards Points
As purchases are made, BCSS automatically computes credits (Rewards Points) for buyers and consignors and records the amount of points in customer records. Importantly, recording points for consignors avoids the need to create a separate buyer record for each consignor who also makes purchases, streamlining your data management.
Flexible Checkout Experience
At the point of sale, available points can be easily applied to a purchase. Customers can then pay any remaining balance using one or more methods (cash, credit/debit card, PayPal, etc.), ensuring a flexible and customer-friendly checkout experience.
Accounting and Tracking Points
Our software includes quick reporting features that make it easy to look up any patron's points or to see the total points earned and redeemed. This data is invaluable for assessing the success of your Rewards Program and making any necessary adjustments to optimize performance.
Advantages of Settling for Store Credit
There are several advantages to settling for store credit instead of cash payouts:
- Cash payments decrease the amount of money available for new inventory and operations.
- Cash transactions increase the costs associated with credit card fees.
- Offering store credit incentivizes customers to return, as they will often prefer to spend that credit on new items, effectively increasing your net income.
- The additional cost to the store is offset, in whole or part, by the savings enjoyed in labor and additional sales generated from repeat visits.