Loyalty / rewards program implementation

Loyalty / rewards program implementation is a loyalty system: clients accumulate points for purchases and actions (an order, a review, registration), spend them on discounts or gifts, and regulars reach higher tiers (statuses) with bonuses. We set up earning and spending rules, tiers, rewards, the points lifetime, the member’s personal account and analytics. The goal is retention: the program gives a reason to come back and buy more often, and helps grow customer lifetime value, LTV (how much a client brings over their entire lifetime — not automatically; results depend on the audience, the offer and how saturated the market is). Unlike promo codes (see the “Promo codes system implementation” service), which give a one-off discount, and gift cards (see the “Gift cards implementation” service), which a client buys, loyalty is a long-term mechanic: points accumulate from repeat purchases. Importantly and honestly: loyalty works only where there are repeat purchases. For a one-off-purchase business (for example, expensive furniture once in 10 years) a program is not needed — there is nothing to accumulate and come back for, and we will say so. And also honestly: points are a future discount, that is a liability and a minus from the margin; giving them out generously without a calculation — the program eats the profit, stingily — clients ignore it. A balance is needed: the reward is tangible for the client but affordable for you. Accumulated points are a liability — agree the accounting with an accountant. Picture this: points drip for every purchase, a regular client is in “gold” status with higher cashback, and they come back to spend what they have accumulated. The base price starts from 40,000 ₽; it depends on the mechanics, the tiers and the integrations.

• Clients buy once and do not return — there is no retention mechanic.
• There is nothing to reward regulars with — they do not feel the benefit of loyalty.
• You do not distinguish the best clients from random ones — everyone gets the same.
• Discounts are one-off, without a cumulative effect — the client is not attached to you.

• Earning points for purchases and actions (an order, a review, registration, a birthday)
• Spending points on discounts, products or gifts
• Tiers and statuses (bronze/silver/gold) with growing bonuses
• Points lifetime and expiry rules (where appropriate)
• A member’s personal account: balance, history, how far to the next tier
• Analytics: engagement, repeat purchases, the program cost
• Protection from points farming and integration with a CRM and newsletters
• Help with the program economics (so as not to go into the red)

• Clients come back more often — there is a reason and accumulated value
• When the mechanics fit, LTV and repeat revenue grow — loyalty retains
• The best clients are highlighted — statuses and bonuses for loyalty
• The effect and cost are visible — the program is under control, not in the red

• You leave a request, describe the business and the desired mechanics
• We calculate the economics, design the points, tiers, rewards
• We implement it, the account, the analytics; test and launch

• How is a loyalty program different from promo codes and a referral one?

  Promo codes (see the “Promo codes system implementation” service) are one-off discounts. A referral one (see the “Referral program implementation” service) is about friends brought in. Loyalty is about the client’s own repeat purchases: they accumulate points and statuses and come back for what they have accumulated. They are often used together.

• Do I need loyalty if I have rare or one-off purchases?

  Probably not. Loyalty pays off where a client buys regularly (cosmetics, coffee, clothes, services). If the purchase is one-off or once in years — there is nothing to accumulate and come back for, the program will not work, and we will honestly talk you out of it, suggesting what fits (for example, a referral one).

• Won’t the program eat the profit?

  It can, if you give out points without a calculation. So first we calculate the economics: how much a point costs, what reward motivates but is affordable for you. Accumulated points are a liability (like gift cards) — agree the accounting with an accountant. The goal is for loyalty to raise revenue by more than it costs. Note the flip side too: some points are never spent — they sit on the balance as a liability (breakage) for a long time; agree how to account for them with an accountant as well.