How a Customer Points System Works: The Shoe Store Example
Scoring customers is meant to attract their participation and to win them over. You score the customers to make them come back to you. You score them based on their purchases, the service they receive from you and the money they pay you. They sum these scores at the end of one month or more, and with those scores they can buy or receive services from you.
The benefits you define for customers in return for their scores are called rewards, and they are highly effective in marketing. To do this, you need to design a system and give the customer points for each purchase.
Suppose we have a shoe store. Someone buys a pair of shoes for 100 dollars, and we give her or him 100 scores. Another time, he or she buys a belt for 20 dollars, and we give 20 scores. Suppose this person gets 500 scores by the end of the month. He or she may check our website and find that a bag can be had with these 500 scores. In fact, that person receives a free product from you, but your benefit is that he or she does not leave you. Such customers accompanied you and purchased in order to get that free product. It is better to give them the opportunity to choose more expensive bags as well. Imagine the customer chooses a bag that requires 1000 scores. He or she already has 500 points, and for the remaining 500 points the customer would pay another 100 dollars.
This system has its own complexities, and it was first started by the Air Miles airline. Their method was such that you got scores for the tickets you bought, and the sum of those scores turned into a free ticket.
The design of such a system is highly sensitive, and you need to consider everything carefully. One of the most important revenue streams for marketing companies is designing such systems for other companies. The design is based on the products and services the company provides, how they should be supplied and how customers should be informed about them.
It does not matter what product you sell. You must first consider a score for each specific currency, for example one score for every dollar. This is the first step. This can be done in two ways: one is to use ready-made software, and the other is to design software for your company. Then you need to manage this software well.