Introduction
Setting up your loyalty and rewards program is easy and in this article we will walk you through a configuration that engages your customers and drives purchase behaviour.
Set up a successful points program - video tutorial
Different types of customers in Smile
Program Member
They are defined as anyone who has a registered account on your store. These customers can hold a points balance, refer friends, redeem rewards and be part of your VIP program (paid plan)
Candidate
These are customers who are not yet part of your program but have the potential to be. These are usually guest customers at your store who have not yet registered for an account. They may or may not have points balances waiting for them once they register, for example, if you have imported points from another platform or loyalty program.
On Smile paid plans you can use the program participation setting to choose which types of customers can participate in your program, including guests.
These distinctions are important to understand because they can determine how you market the rewards program. For example, using an Email Service Provider (ESP) you can email Candidates in your newsletter with a Call to Action to sign up for the rewards program.
Points Program Configuration
Your points configuration is the foundation of your rewards program. Balancing incentives that matter to your customers and the financial needs of your business (things like average order value, margins, and purchase frequency) to drive the growth you want is critical to your overall success. There are two things you need to configure to make your points program shine: Actions & Rewards.
Actions are how your customers earn points (e.g. making a purchase on-line or in store, sharing their experiences through social platforms like Facebook or Instagram, or celebrating their birthday). Rewards are what your customers redeem points for and traditionally take the form of dollar or percent off discounts, free product (on our paid plans, free shipping, etc.).
Suggested Configuration
Follow along in-app: 'Place an order' earning action in Ways to Earn
Suggested configuration: provide a points value between 3 and 10 points per dollar spent which equals to 3% - 10% back to the member, in points value.
Example: if you have an Average Order Value (AOV) of $50, and your member earns 5 points per $1 spent. They will earn $50 * 5 = 250 points for every AOV purchase, allowing them to earn enough points for the minimum reward of 500 points = $5 after every 2nd purchase.
Another way of looking at this is, if I spend $100, I earn 500 points which is equal to $5 in points value. Therefore I am giving 5% back.
Follow along in-app: Ways to Redeem
Suggested configuration: use the Reward type Amount Discount as multiples of 100 points = $1. Another way of looking at this is 1 point = $0.01, therefore 100 points = $1.00
Having a rigid value for points makes it easier to market and communicate your program to members and it also allows them to quickly understand the value of their points balance.
Referral Program Configuration
A referral configuration supercharges your points foundation and allows your loyal customers to bring their friends to your business. Making sure you have a configuration that equally rewards your customer (the advocate) and their friend is key to maximizing the success of your program.
Suggested Configuration
Follow along in-app: Referral Program - Rewards
📝 Pro-tip: The optimal Advocate and Friend reward is a $ Fixed amount discount equal to 10% - 20% of your average order value (AOV).
It’s okay to add a minimum spend to these coupons. Another good rule of thumb is to have the minimum order around your Average Order Value if you want to protect margins.
Checkout our Recommendations for optimized points and rewards for a more 🚀
What's next?
Program launch checklist