Getting started with loyalty programs
Brands use various methods to strengthen the bond between them and their clients by offering more and more incentives in the form of coupons, reductions, small gifts, and others. This relationship is known as loyalty, and brands are always looking for ways to improve it.
To address this need, Splio offers you the Loyalty module. This powerful tool in brand-customer relationships allows you to recreate the marketing strategies of your brand within your Splio universe in the form of loyalty programs. For instance, as your clients make purchases, you can reward them with points within the program or allow them to join more exclusive groups with progressively more valuable rewards, which encourages them to spend more. These groups are modeled as tiers within programs.
You are never limited to a single loyalty program within your universe: you can create multiple programs, with or without tiers. You can define rewards and use them in your programs where you need them. (This means there can be programs with and without rewards.)
More importantly, the Loyalty module is an integral part of the Splio universe, tying in to stores, products, and contacts' behavioral data. Accessing program memberships, points balances, or tiers of your contacts is no different from accessing the behavioral data for sales. You can freely create filters making use of loyalty data for use in your campaigns.
Table of Contents
- How to create a new loyalty program
- How to switch between loyalty programs
- Qualifying and Non-qualifying points
How to create a new loyalty program
If there are no loyalty programs yet in your universe, you will see a welcome screen. You may begin creating a program immediately. Otherwise, you will see the program you have recently visited.
Go to the Loyalty programs basics document to learn more about creating programs.
How to switch between loyalty programs
This button is only available when you nave more than one program in your universe.
Qualifying and Non-qualifying points
The Qualifying and Non-qualifying points, called Q and NQ points for short, are used to monitor the level of involvement of each individual within a loyalty program. For this reason, they are collected separately for each contact and program.
A contact is usually credited points based on the amount of money spent on products related to the loyalty program. Points can also be awarded automatically by actions within scenarios or manually by customer service.
Q points are used to rank members of loyalty programs, allowing you to grant perks, rewards, and tiers to users who collect a certain number of them. Q points allow both upwards and downwards mobility: members may be promoted for amassing more points and demoted when their points expire, or when the rules change.
NQ points are meant to be the internal currency of each loyalty program. Program members will be able to spend (or burn) their points, for instance, by selecting rewards from the catalog or participating in offers received by SMS or email. On the other hand, by using filters, you can potentially identify members with enough NQ points to collect a reward, as well as those who spend all their points or do not spend them at all.
Validity and Expiration
All points are assigned a validity period when they are credited. This period is defined in the loyalty program settings.
This mechanism automatically promotes member activity, since more active members will make a better use of their points, and inactivity will cost users their points.
Cascading means that the validity period of all points a contact already has accumulated is reset each time they gain new points. It means that when cascading is enabled, the validity period is always counted from the last time the contact gained points.
Cascading is an option which can be enabled or disabled for each loyalty program separately.
When a contact earns points, they will be initially put on hold for a period specified in the loyalty program settings.
Holding points prevents individuals from spending them until the hold is released. This way, as the party operating the loyalty program, you can have a better control over how the loyalty points are used and spent. You can avoid moving contacts up a tier and back again if for any reason the points are removed or canceled before the holding period ends (e.g., a product was returned and money reimbursed). Also, your contacts will not be able to spend NQ points they should not have.