Article#: KB2279
Article Date: 28/07/04
Version: N/A
Client Loyalty/Clubs Overview
Shortcuts allows you to capitalise on your most valuable asset by supporting Client incentive programs above and beyond standard discounts. Shortcuts allows you to create points based Incentive Clubs whereby Clients are rewarded on the dollar amounts that they spend… the more they spend, the more they earn. This means that your valued clients are rewarded and encouraged to return.
Setup Menu (Navigation Bar) Club Icon
The Club feature is designed to allow you to group clients together into Clubs for:
• Marketing purposes
• Automatic Discounts
• Incentive Programs (Points)
• Specials
• Simply grouping different types of Clients together
Standard Discount Club
Members of a Standard Discount Club receive a flat discount rate (percentage e.g. 10%) or flat rate (e.g. $5) for Services, Products and/or Sundry Income Items purchased. Some examples are:
• Student Club - 10% discount on services, no discount on products
• Staff Club - 100% discount on services, products at cost
• Seniors Club - 15% discount on services, no discount on products
Points Incentive Club
Shortcuts allows you to create Clubs in which Clients accumulate points for dollars spent on Services, Products and Sundry Income Items. These accumulated points can then be redeemed to pay for future Services, Products and Sundry Income Items. The purpose of a Points Incentive Club is to provide Clients with membership to an exclusive Club that rewards them for active patronage of your business.
Consider this…
If a service costs $50 and a Client receives 10% discount each time they visit, they will be paying $45 for the service each visit. 2 things will happen … firstly the Client perceives that the value of the service is only $45 (the out of pocket cost) and secondly there is no real incentive for the Client to return.
However, if the Client was receiving 10 points for every $100 spent (essentially the same thing - 10%) they would be paying $50 for each visit, and therefore the perceived value of the service is $50. In addition they will be earning 5 points each time they visit. This becomes the added incentive for the Client to return. After 6 visits the Client would have accumulated 30 points. They are less likely to go to a competitor at this stage, as they would not be adding to their account of 30 points.
By the time the Client has visited 10 times they will have received their average spend in points (in this example 50 points). They then have $50 (which is the perceived value of the service) to spend in the business.
When redeeming points accumulated at the Point of Sale 1 point is equal to 1 dollar.
With a Points Incentive Club, Clients are rewarded on the dollars that they spend in your business. It's simple … the more they visit and the more they spend, the more points they earn.
Note: Many successful Points Incentive Clubs consist of multiple levels (E.g. Bronze Club accumulates 5 points per $100 spent, Silver Club accumulates 10 points per $100 spent and Gold Club accumulates 20 points per $100 spent etc).
Advance Payment Incentive Club
This is also a points based Club with a pay in advance incentive. Here’s an example of how one works:
A Client pays a membership fee of $1000 to join the Club. They are accredited with 2000 points to spend in the business within a 12-month period (whichever comes first). Essentially this Client has been given double their money. But to get this they must pay the $1000 up front. This idea will work with any incentive; it does not have to be double.
This type of Club works well with a limited number of Clients and a limited joining period (e.g. 2 months). It will increase cash flow and create an elite group of VIP Clients.
Note: You may have many clubs of all 3 types setup in Shortcuts, however; a client can only belong to 1 club at a time.
Setting Up a New Club
Choose a start date for the Club to begin. Allow plenty of time to prepare and train Employees.
Setup Menu (Navigation Bar) Club Icon
1. Click the New button. The New Club window will appear.
2. Using the keyboard, type in the name of the New Club.
3. Click the Done button. A message will appear asking if the members of this Club will accumulate points to pay for services or products.
4. Clicking the Yes button will automatically setup a ‘points’ payment type for this Club. If you click the No button, Shortcuts will assume you are not using points and therefore do not require a ‘points’ payment type for redemption. The New Club name will appear in the Club Name drop down list.
5. If the members of this Club are to receive a fixed discount on Services, Products and/or Sundry Income Items, double click to select the relevant field and type in the discount amount. If the discount amount is not followed by the % symbol the amount will be considered a fixed amount (e.g. 10 is considered a flat $10 discount; and 10% is considered 10 percent discount, etc).
6. If the members of this Club can purchase products at cost (e.g. Staff Club), click to place a tick in the Products at Cost tick box.
7. Click in the Description field and, using the keyboard, type in a description for the Club and it’s members.
8. If members of this Club accumulate points for Services, double click to select the Service Points field. Using the keyboard, type in the number of points to be credited to each member’s account for every $100 they spend on Services (e.g. 10).
9. If members of this Club accumulate points for Products, double click to select the Products Points field. Type in the number of points to be credited to each member’s account for every $100 they spend on Products (e.g. 5).
10. If members of this Club accumulate points for Sundry Income Items, double click to select the Sundry Income Points field. Type in the number of points to be credited to each member’s account for every $100 they spend on sundry income (e.g. 20).
11. If you want to put a time limit (expiry) on accumulated points, double click to select the Time Limit on Points field. Using the keyboard, type in the number of months that accumulated points will be valid for (e.g. 12). 0 means no Time Limit.
12. Specify what the members of this Club can pay for with their accumulated points, e.g. Products and/or Services and/or Sundry Income Items. Click to place a tick next to the relevant option(s).
13. When accumulating points, if the Include Discounts tick box is ticked, members will receive Points based on the full price before any discount (e.g. if the service was $100 and there was a discount of $50, the member would receive points based on $100). If this option were not ticked, the member would receive points based on the price after discount (e.g. $50).
14. Set Club Expiration. You have the choice of the following options:
Duration – Click in the Duration field, and using the keyboard, type in the number of months from the joining date that the membership will expire.
Or
Expiration Date – Click on the Expiration Date area and select the relevant date that the membership will expire from the calendar.
15. Click the Save button to save changes.
Accumulating & Redeeming Points at Point of Sale
When attached to a Points Incentive Club, a Client automatically accumulates the relevant points exclusive of any tax component.
When a Client redeems Points at Point of Sale, any tax component will be removed from each individual item (Product, Service, Sundry Income Item) specified as being paid for using Points.
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KB2279 - How To Setup Clubs
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