The Loyalty programs are defined by using the Loyalty Configuration Program and then assigning the program ID to your customer profiles.  The setup is very simple, and yet it can define some very flexible plans.  Each plan can be configured to award your customers in two different ways or modes, both have their advantages and disadvantages.  The different redemption awarding modes are defined below:

 

Item Number Redemption Awarding Mode - When an Issue Credit Plateau has been reached by a customer, on the next eligible* sale this customer will have an item number automatically attached to their sale with a negative quantity to be used as a pre-tax credit amount.  This credit amount is equal to the Issue Increments defined by the Program ID as set up in the above dialog.  This credit essentially acts as a discount to the next sale made to this customer.  The advantages of this type of award are that the customer (and store) are not paying the sales tax on the full sale amount but rather on the sale amount less the award amount.  The disadvantage is that the award has to be used at the time of the next sale.  This type of award can not accumulate and must be awarded before the expiration days expire.

 

Note: The general ledger can track this type of award; when the Sales G/L Account number field is assigned on the Item Number screen for the Redemption Item Number.  Possible values for the Sales G/L Number would be Sales Allowances or Loyalty Program.  By using the sales allowances account number would cause these types of transactions to report against the Sales Allowances and would be a reduction of Net Income on the Profit and Loss.

 

Accounts Receivable Credit Awarding Mode - Whenever a Redemption Item Number is not Entered into the Loyalty Configuration dialog the Redemption mode will default to issuing Credits to the Accounts Receivable System. This credit amount will be equal to the Issue Increments defined by the Program ID as set up in the above dialog.  This credit acts as a payment type towards any future transaction that can be used by the clerk against the A/R Credit awarded.  The credit issued doesn't have to be used in its entirety at the next sale, and in fact, it doesn't even have to be used at all until the awardee is ready to use it.  A/R credit awards have other advantages in that these credits can build up until the customer is ready to use it and will never expire once awarded.  If the store allows, the awards can even be allowed for gift card and gift certificate purchases.  The disadvantage of this type of award is that the award amount is after the sales tax amount so that the customer will be paying sales tax on the full amount of the purchase.

 

Both of these awarding modes are both dynamic and can be changed at any time without any downfall.  However, if they are changed it will not have any effect on previously issued awards.

 

* Eligible means that it passes the maturity days test and that the total sales for this customer exceed the Issue Credit Plateau and that the awards haven't yet expired.

 

Loyalty Program Fields:

 

Program ID and Program Name describe this unique loyalty program.  The Program ID is an integer number from 1 to 99,999 and is also used in the customer profile section to link a customer up to a particular loyalty program.  The program name is used to uniquely describe this particular loyalty program.

 

The Sales Factor is used to define the ratio of sales to an award and is notated as a decimal factor.  You can think of the sales factor as sort of a reverse sales tax factor but one that will be potentially awarded back to your customer if they achieve a certain sales total goal.  This Sales Factor is multiplied against the yet un-awarded cumulative sales for the customer until the total sales grow to be equal or exceed the Total Sales Plateau.  Once a Sales Plateau is reached an award equaling the Issue Increment will be issued if all of the sales making up the Total Sales Plateau are older than the Maturity days defined to the loyalty program. In addition to the Maturity days requirement, they also must be younger than the expiration days requirement when defined.

 

Other Things to keep in mind:

 

• Only Sales transactions earn awards.

• Sales Refunds diminish earned or unearned rewards

• Voiding Sales that have earned rewards removes these rewards

• The Layaway transaction doesn't earn rewards until converted to sales.

• Gift Card Sales do not count towards rewards