Different types of reward programs

Several types of programs are available and can very easily be implemented into most any type of business. Some rewards based systems can also be combined together with a gift card program. The combo card can offer a pre-paid balance and accumulate ongoing points or dollar based rewards on the card. This allows merchants to provide rewards based on the number of times a consumer visits or how much a consumer spends.

Electronic Points Bank (EPB)

These programs offer a flexible method for merchants to reward their customer while simultaneously providing the retail merchant with information related to their customer’s buying habits. In addition to the Multi-card function, EPB is a unique offering designed to integrate multiple program types onto a single card seamlessly. One card maintains balances for multiple programs concurrently. The Electronic Points Bank program allows the merchant the ability to track and reward customer loyalty.

The program can be used in a multitude of ways. Merchants can use the Electronic Points Bank to track customer spending and provide the customer Retail Merchandise Credits (dollars to spend). The customer can redeem these at the merchant location. Redemtion based on the award levels pre- determined by the merchant.

Merchants can have the ability to capture customer demographic information and link that information to a loyalty card. This demographic information can be used to provide awards in the form of direct-mail rebates and other promotional incentives that are not directly placed on the loyalty card.

Frequency Reward Program

The Frequency Reward Program offers a flexible way for customers to purchase a set number of items and then receive a free or discounted item or service. This program is based on frequency of use or number of items purchased. Once the consumer reaches a pre-set threshold, they will receive a reward offered by the merchant.

Club Program (frequency)

The Club program offers a versatile method for merchants to allow customers to purchase a set number of items at a discounted price and receive an item or service for free as an incentive. The merchant can choose the number of purchases required and the item or service that the Club balance can be redeemed for.

An example for this would be a merchant offering a free oil change with the purchase of 10 oil changes, or offering a discounted price for an oil change once a consumer purchases 10 oil changes.

Dollar Reward Program

The Dollar Reward Program offers customers a way to earn rewards based on their spending across all sales channels. The points can be converted to dollar value and added back on the card for customer redemption. When a consumer reaches a pre-set spending threshold, a point reward is automatically added on the card. Points show up as Retail Merchandise Credit (RMC). The program can have a maximum of 5 reward levels/thresholds that are pre-set by the merchant during program setup.

Rebate Program

Rebate allows merchants to reward consumers a percentage of the sale amount. Most systems will handle the conversion and calculations and add % to the card after the purchase. The merchant can select from several types of rebates.

  • A rebate of x% can be applied to every purchase made by the cardholder regardless of purchase size
    Example: 10% rebate on every purchase.
  • A rebate of x% can be applied to purchases over a threshold amount set by the merchant for individual purchases
    Example: 10% rebate on every purchase over $10. Purchases under $10 receive no rebate.
  • Ability to combine tiered rebate % with tiered threshold amounts
    Example: 10% rebate on every purchase over $10, 20% rebate on every purchase over $50, and 30% rebate on every purchase over $100. A maximum of 10 rebate/threshold levels per unique program.
  • A rebate of $x can be applied to purchases over a threshold amount set by the merchant for individual purchases
    Example: $5 rebate on every purchase over $25. Purchases under $25 receive no rebate.
  • Ability to combine tiered $ amount with tiered threshold amounts
    Example: $1 rebate on every purchase over $10, $5 rebate on every purchase over $50, and $20 rebate on every purchase over $100. A maximum of 10 amount/threshold levels per unique program.