Loyalty Programs

Threshold Loyalty Example

Let's look at a fictitious Merchant, Magic Car Wash, to see how it all works:

  1. Choosing an initial points threshold of 100 points (see Loyalty Threshold Table below), Magic Car Wash uses a ratio of 1 point per dollar spent, and so a customer will have to spend $100 before he earns his first Reward.
  2. Next Magic Car Wash decides what the customer receives for his $100 of business already received.
  3. Magic Car Wash creates a Loyalty Threshold Table to manage its program:
    $ Spent Rewards Threshold Reward
    $100 100 points Car Wash
    $250 250 points Car Wash & Interior Clean
    $500 500 points $50*
    $750 750 points Mini Detail
    $1,000 1000 points Complete Detail
    * When Merchant elects to use cash value as a Reward, the value is automatically added to the Card Balance.
  4. When a customer makes a Purchase using his Magic Card, a transaction receipt is printed (see below): For example, a customer makes a purchase of $15.00 (which is deducted from his Card Balance) earning him 15 points

    Customer Points continue to grow and each time a customer makes a Purchase his Points Earned are placed automatically on the card.

    Since the 15 points puts the customer over the second threshold of 500 points, it is time for the customer to receive his second Reward, which is where the fun really starts...

    5. Reward Coupons

  5. By surpassing the second threshold he is rewarded with a "Car Wash & Interior Clean", and a Reward Coupon is automatically printed: