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How To Build Points Program For Customer Club
Posted By: assaforit* on 8/26/2004 2:01 AM (CST) 250 Points
I need to plan a points program for customer club.
pls advise

Posted by: Peter (henna gaijin) Accepted Answer
8/26/2004 2:24 AM (CST)
You didn't provide much information about your situation, so it is hard to provide any specifcs tailored for you. So here are soime gernal ideas and examples.

But you should consider something that incents them to do something you want (presumably buy more of your product). And of course, make it managable for you to run.

Some examples you can look at of points programs:
- mileage programs for airlines (incents people to fly, but doesn't really incent people to spend more money - if I buy a $200 ticket that goes the same distance as a $1000 ticket, I get the same points. This is potential downside to their system)
- credit cards offering cash back or points per dollar spent. This should be pretty effective, as it incents usage of the card.
- many local business often do a system where you buy x number of services and you get the next one free. They leave it to the customer to track (save reciepts, get stamps for a card, or similar), so this removes the burden from the company.
 
Posted by: vikrant* Accepted Answer
8/26/2004 2:37 AM (CST)
you should have stated your question elaboratively. anyways as per my understanding of your query you need to reward the loyalty of your club members.

have a reward based loyalty program. the more they visit your club more the points they gather for patronizing the club.

design a scheme wherein they can redeem points at certain milestones. For eg - 500 points will entitle the member to be liable for a wrist watch etc

divide the membership in to classes :

premium member
general member

Premuim members could be given the benefit of discounts on Apparels, food & Beverages at other happening places in town. for this ur club needs to tie up with such places for a symbiotic relation ship.

this enable you to have differenciation in the manner in which u treat your most esteemed customers.

communicate the scheme loudly & attract the footfalls
this should get you started. cheers
 
Posted by: ASVP/ChrisB Accepted Answer
8/26/2004 3:55 AM (CST)
I hope you have put more thought into your strategy than is apparent from a first glance at your question.

What industry?

Which country or region?

Why are you planning this - why do you think you need to do this?

What do you think a Customer Club is going to do for you?

How much do you expect to invest...
(a) setting it up?
(b) running and maintaining it annually?

I will watch this thread for your answer so I can better help you...

ChrisB
 
Posted by: Jett* Accepted Answer
8/26/2004 9:52 AM (CST)
I think you should check out www.mypoints.com. They are rated as one of the best loyalty programs available.

They combine special offers...good ones. like gift cards to popular stores, etc in exchange for you to participate in surveys for these companies. The more you participate, the more "points" you earn, and therefore the more rewards you qualify for.

Here are some other resources:


http://www.ecommercetimes.com/story/32997.html

www.crmguru.com

http://www.loyaltymatrix.com/?ref=GoogleAdwords

Good Luck!
 
Posted by: KJMurray* Accepted Answer
8/26/2004 11:16 AM (CST)
There are also many previous posts if you use the "Search Questions" function. You can start by searching on the word "loyalty" and get many good hits.

Good luck!
 
Posted by: jose04 Accepted Answer
8/26/2004 2:44 PM (CST)
Hello assaforit

I understand that the points program should be one which helps customers relate more and more with the organisation, get to use its products much more, and ultimately be loyal to the organisation. The point system is a methodology to attract future purchases/usage from potential buyers. As a long term strategy, building a system and a program for the customer club will serve the cusotmers in the many focus groups within it. THe more the usage, the more the points acquired, can be a key philosophy for its workability.

Points acquisition is a kind of recognition for the effort taken, may be like in the marketingProfs KHE, where the experts who answer questions are given points. Currently, the higher quality answers are not differentiated from the ordinary. THe customer club point system could help to rank customers based on their level of cotribution in time, expertise etc. THis has to be adopted, based on its optimal usage or else it could lead to discriminatory practices. A working point system is bound to operate under limitations and these should be kept in mind by club members to maintain the charm of working together as a team.

The principles which form the customer club itself should be the guiding light for its smooth functioning. The club itself can form into several interest or sub groups based on common interest or homogeneous characteristics. As points are collected by each sub group for the purchases made, it will also encourage healthy competition (at least point wise) beteeen subgroups.

The point system can include a seeable clause, that 'Reaching milestones' get further recognition, awards, company sponsored trips etc., for the customers. This is always a motivator and keeps the loyalty going too.


Hope these thoughts help!
 
Posted by: jaccog* Accepted Answer
8/27/2004 9:08 AM (CST)
assaforit,

I have to go along with Chris. I would like to help you out, but you got to give us more info to work on.

My experience for one is that points program in general are seldom needed and that efforts can usually best be made in other areas such as customer service etc.. But ofcourse this all depends on the kind of business you're in and what you're looking at.
Please help me help you better and give some more info so we can get started.

Regards,

Jacco
 
Posted by: joelkantor* Accepted Answer
9/5/2004 5:05 PM (CST)
I own a company that designs custom loyalty programs for merchants. If you want to design a specific points program, call me at (858) 569-8842.
Joel Kantor
President
www.synergyworld.com
 
Posted by: eugene Accepted Answer
9/5/2004 11:29 PM (CST)
Hi assoforit,

I have to agree with both ChrisB and jaccog here. More info will definitely allow us to share more.

Anyway, some general thoughts to your general question.

What does your customer club do / stand for?

What do you expect to achieve with this points program?

Is this what your customers want?

It depends really, whether a points program will work for your customer club based on what you're selling. It probably will if you are in the FMCG line.

You will also need to think of the redemption process; will it be via catalogue, web based, instant or all?

What about qualification? Will it be automatically when they make a purchase or will it be offered to them on pre-determined criterias? Can they apply without buying anything or do they have to buy a certain amount?

How easy will the accumulation of points be? Will it be based on amount purchased, number of items purchased, frequency of purchase etc? What about the locations that they can accumulate points?

Do you intend to work alone or with partners to enable your customers to accelerate their points accumulation?

Do share your thought with us.


Cheers.
 
Posted by: Sharon Moderator Response
9/12/2004 2:11 PM (CST)
Hello all. I am closing this question. This is standard procedure when the question author gets busy and falls out of the conversation for a while – or doesn’t understand the procedure for closing.

Thanks for participating!
 


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