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Loyalty Programs Setup

A loyalty program helps you ensure customer loyalty by rewarding customers for buying products in your retail stores. In retail stores, a plastic or paper card typically identifies the cardholder as a member of a loyalty program. This card may be referred to as a loyalty card, rewards card, points card, advantage card, or club card.

The following illustration shows how setting up loyalty programs relates to the overall setup process for the loyalty feature in Retail.

There are three parts in this Loyalty Components to setup:

  1. Create Loyalty Program
  2. Create Loyalty Scheme
  3. Create Loyalty Cards

The illustration below explains the whole setup:

  1. Set up Loyalty programs that represent the different reward incentives that you offer. You can include loyalty program tiers to offer greater incentives and rewards to customers who shop more frequently or spend more money in your stores. Each loyalty program can also have loyalty tiers assigned to it. There are 4 components in setting up a loyalty program:
    1. Set up Date Interval
    2. Set up Tiers
    3. Set up Reward Points
    4. Set up Tier Rules (In our case this is 3rd Party Integration)

 

Set up Date Intervals for loyalty tiers

If your loyalty program includes tiers, you must set up date intervals. Date intervals provide a flexible way to set the time span that applies to loyalty tiers. Date intervals enable you to track data over a period of time without having to set up a specific date range again and again. You can use date intervals to specify the length of time a customer can stay in a tier or to determine the time period in which the customer must complete an activity to qualify for a tier.

For example, if you have a loyalty program that allows a customer to qualify for a gold level tier if they purchase 30 products in a year, you can set up a date interval to capture the one year time span. You can then assign the date interval to the tier rule to track the customer’s purchase activity and evaluate their activities to qualify them for the next loyalty tier.

To set up date intervals, follow these steps

Navigation: Click Retail > Setup > Loyalty > Date intervals.

In this case two Date Intervals are created:

  1. Nextyear
  2. PrevYear

Then there are two Tiers created:

  • Member
  • Titanium

 

Based on the existing configuration, a customer enrolled in the loyalty program will be placed in the ‘Member’ tier automatically, as there is no requirement established for previous points earned to qualify for this tier. However, there are no specified criteria or points outlined for a customer to upgrade from the ‘Member’ to the ‘Titanium’ tier and they are linked to COL_US Loyalty Reward Points, created in the system (Below Screenshot attached)

 

Create Loyalty Reward Points that you tend to offer in your loyalty program and track participation in your loyalty program. Reward points are the types of reward that you offer to your customers. Rewards points can be redeemable or nonredeemable. Redeemable reward points can be exchanged for products. Nonredeemable reward points are used for tracking purposes or to advance a customer to the next tier in a loyalty program.

In this case, the Loyalty Reward Point created is COL_US

Important Fields are

  • Reward Point ID (COL_US)
  • Reward Point Type – Reward Point type is set as ‘Amount’
  • Redeemable Check Box – Points can be Redeemed
  • Expiration date – 1 Year

 

 

  1. Loyalty Scheme defines earning and redemption rules to identify the activities that a customer must complete to earn rewards.

 

You assign channels to a loyalty scheme to identify which loyalty program, earning rules, and redemption rules apply to a store. In case of COL_US, below are the earning and redemption rules defined:

  • Earning Rules: To earn 1 point, a customer shall spend 1 USD
  • Redemption Rules: Every 1 point earned can be redeemed against 0.0050 USD
  • This is applicable to both Member and Titanium under current setup.
  • RETAIL CHANNELS shows the list of all stores which are eligible for the loyalty program.
  • EXCLUDED Affiliations include affiliations created in D365. It means that where affiliations are linked, loyalty points will not be earned against purchased.

  1. Loyalty cards: This topic describes how to set up loyalty cards that entitle card holders to participate in your organization’s loyalty programs. Loyalty cards can be issued anonymously, or they can be assigned to a specific customer. If a loyalty card is assigned to a customer, the customer can redeem loyalty points from multiple associated loyalty cards, if the loyalty program allows this. Loyalty cards can be issued from any retail channel, and loyalty points can be redeemed in any retail channel that participates in the loyalty programs that are assigned to the loyalty card.

 

Loyalty customers can apply loyalty cards to their online transactions if they sign into the online store. If the customer does not sign in to the online store, but shops as a guest instead, they can only apply loyalty cards that were issued anonymously to their transactions.

Navigation: Retail > Common > Loyalty > Loyalty cards

  1. Loyalty card need to be setup for each customer in D365. Below is a screenshot for one of the customers who is part of the loyalty program.
  • The below customer 15145643 is part of the COL_US loyalty program.
  • The REWARD SUMMARY shows that the customer currently has 1600 points available
  • As per current setup, each loyalty point earned can be redeemed against 0.0050 USD.
  • For 1600 points earned, the customer can redeem these points for 8 USD which is also being reflected in reward points summary below.
  • Currently, the following customer active tier is Member. For customer tier to upgrade to Titanium, it would come from integration.

on these setups, we will be able to run the Points adjustment feature smoothly. If we update a customer card through points adjustment, it would require integration

  1. The points on the customer card will be update accordingly. And customer will automatically fall in the respective tier against the points adjusted.
  2. In next stage, whenever customer points will increase through integration, the customer tier will automatically update.
  3. If these setups are not defined in the system, we will have to forcefully change tiers through customizations every time for every customer.
  4. For smooth configurations, it is suggested to use the out of box feature available in d365 a basic setup for above mentioned points.