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WHAT ARE BONUS POINTS?
Competitive forces in the market place make it necessary
for your business to stand out to consumers. Having a loyalty programme is a way
to create a point of difference, making it a preferred option for new and existing
clients. Research has consistently shown that a comprehensive loyalty programme
operating within a business can help encourage repeat consumer patronage. However,
a loyalty programme needs to be carefully constructed with specific and achievable
rewards combined with a transparent point accumulation system to help drive consumer
sales. Without these attributes, the consumer will be wary and not participate thus
defeating the purpose of the scheme.
Recognising this burgeoning consumer desire to be rewarded
for ‘shopping exclusively’ with a particular business, CFL identified
that an upgrade was necessary to remain competitive within the market as the existing
VetlinkSQL software programme had a basic loyalty system incorporated in the software.
CFL worked with P2P Limited to develop a comprehensive, corporate quality, Bonus
Points system that has been integrated into the VetlinkSQL software programme with
a seamless integration to the clinics website for client interaction.
Existing loyalty schemes have two major issues that can be disconcerting to a clinic
contemplating introducing a loyalty programme. The first issue is the cost
of administration and maintenance and the second is the cost of the ‘middle
man.’ Some loyalty schemes can be difficult to execute from the clinics, clients
or suppliers perspective, while others have a ‘middle man’ who wants
to profit from managing the programme. Both of these issues increase the cost to
the clinic as well as the suppliers, and reduce the discount that can be passed
onto the client. This may result in a clinic’s decision to forgo having a
loyalty programme. It is these problems that were addressed when the Bonus Points
system was being upgraded, which has resulted in the system being extensive but
still simple for all users to implement.
The system that has been developed is comprehensive and allows the user to activate,
manage and track in-house, with no implementation or ongoing expenses. There is
full control over point qualification for clients. This makes it a great way to
encourage clients to use your entire range of services and to think of your business
first for their retail needs. There is also the ability for existing clients to
earn points by referring new clients and the scheme is very simple for suppliers
to participate directly on a one to one basis with clinics to help grow their business.
OH NO! NOT ANOTHER CARD!
Knowing that most people already have an impressive
collection of loyalty cards in their wallets and purses, CFL, partnered with P2P
Limited, have developed key tags that can be used in the VetlinkSQL, HairlinkSQL
and PetlinkSQL software with personalised barcodes on the back to be used instead
of cards. However, it should be noted that cards are available, if the business
feels that this is what their clients would prefer. The personalised key tags, doubling
as client identification and clinic branding, have a personalised barcode which
is linked to the customer file so it will aid in quickly and efficiently finding
the correct client record. The key tag, conveniently fitting on their key ring,
will not only make locating client records easier, but will also act as another
form of identification for selling restricted drugs. Add a digital photo of the
client onto their file as well, and you have provided your clinic and your client
with an extra level of security. In addition to this, it will make it easier for
your staff to record retail sales under the correct client’s name when they
are just “popping in” for hairspray or pet food which is exactly what
is required for effective data mining, business intelligence and targeted marketing.
It is important to note however, that if the client has left their card at home,
they can still collect their Bonus Points once the client record has been located.
Because they will want to collect their Points for the purchase, staff will find
that the client has a little more patience to wait and it will reduce the number
of ‘cash only’ sales put through the till.
HOW MANY POINTS DO I HAVE?
Consumers often complain that they are unable to remember
how many points they have or what the points are redeemable for. With a vast selection
of loyalty schemes available to them, it is certainly a chore to keep track of them
all. CFL, in conjunction with P2P Limited, have created the ability for clients
to track the accumulation of their points online through your website with an integrated
clinic web site or there is the option for clients to receive corporate quality
professional statements detailing the accumulating points total and their upcoming
expiry in 1, 2 and 3 month alerts. By encouraging clients to check their points
total online, you can also bring their attention to the ability for them to check
the time of their next appointments which will result in your clinic’s phone
lines being freed up, and in more hits for the website. Integrating the Bonus Points
system from the front desk right through to the clinics web site has made the Bonus
Points system easy to use for both clinics and clients alike, making it the ideal
system to operate in today’s modern veterinary environments.
SUPPLIER GIVING 1 FREE FOR 10 PURCHASED. WHO DOES
IT BENEFIT?
The supplier benefits by obtaining brand loyalty from
the client and your business. The client benefits as they are rewarded for their
repeat purchases. The benefit to the business, however, is debateable. You have
kept the client happy, and they may continue to purchase that particular product,
but technically speaking you have done yourself out of a sale.
HOW CAN A BUSINESS MAINTAIN THE STATUS QUO, CREATE
FLEXIBILITY FOR THE CLIENTS AND GROW THE BUSINESS ALL IN ONE GO?
Example: Product A retails at $100. Give your clients
1000pts ($10) for each purchase of that product. Once they have purchased 10 of
that product, they will have accumulated 10,000 points ($100) and can claim the
“free” 11th product. This shows the similarity between the systems.
However, Bonus Points allows for the capability to do so much more. Clients can
collect Bonus Points on a wider range of products which can be pooled into one total.
There is also the option of collecting Bonus Points on
the services that are provided by the clinic; something that the suppliers cannot
offer you with their scheme. By choosing services that have low overheads to the
business, you can promote these services to clients helping generate more business.
By allowing for these services to be redeemed as rewards, you can minimise the running
costs whilst maximising the client satisfaction.
The concept of collecting points from a wide range of participators, but redeeming
through only one, is not new. Air New Zealand Air Points, for example, can now be
collected not just from the airline, but from other participating retailers such
as BNZ Global Plus credit cards, Budget Rent-A-Car and Hilton Hotels to name but
a few. The end result is that people will fly on Air New Zealand, as opposed to
another airline upon redemption of their points. Air New Zealand, while not making
money directly for their company when customers redeem the points, have prevented
their competitors from profiting from that customer.
By utilising the Bonus Points system, you create a reason for your clients to purchase
from you, rather than shopping elsewhere. Each time the client purchases from you,
you deny your competitors the opportunity to gain that sale. There is no need for
you to partner up with anyone outside of your business except for your suppliers.
ADVANTAGES OF USING BONUS POINTS
1) The key tags, combined with the in-built system, will
allow for tracking of the accumulation of bonus points. Clients do not need to carry
a card and request it to be stamped and you no longer need to worry about “Oops,
I forgot my card last time, may I please collect the stamp for it now?”
2) The in-built bonus points system has the ability to introduce a wide range of
products and services into the loyalty scheme. By doing so, you are able to emphasise
the business as a brand that clients think of for all their requirements; both service
and retail related. It promotes flexibility in your loyalty scheme, making it more
attractive for people to use, resulting in increased profit for the business.
3) Not all points are going to be redeemed, so the business will benefit from this
extra “money”. Research shows that in the United Kingdom, shoppers are
sitting on £2bn in unclaimed rewards and about £460m is going to stay
this way (www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=400945&in_page_id=9).
4) When $100 RRP worth of points are redeemed by the client on a product, the businesses
actual cost of the product is say $70. However, the customer perceives the value
of the reward as $100.
5) The activation of the bonus points system allows for
the whole process of collecting points to escalate into a ‘strength’
and a point of difference for the business. Pooling points into one system will
result in the ‘whole being greater than the sum of the parts’ thereby
creating synergy in the business.
6) Over time, the prices of the services and retail products will
go up and the value of the loyalty points will drop creating a future margin for
the business to capitalise on.
7) Because the key tags come three to a card, there is the ability for you to promote
different aspects of your business. The key tags could have separate designs to
differentiate your large animal clients from your small animal client. Another possibility
is to have a special key tag for your V.I.P clients. If you have a chain of
stores, each branch can have their own key tag design, but they can all be ordered
at once thus reducing the cost.
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HOW CAN I MAXIMISE THE SYSTEM TO ENCOURAGE CLIENT
SPENDING?
DOUBLE POINTS
Have special “double points” days to attract clients – with or
without supplier participation.
LUXURY PRODUCTS
Promote high margin “luxury” products for redemption to create an extra
margin for your business.
SLOW MOVING PRODUCTS
Promote slow moving items, products that are nearing expiry and / or end of line
products using extra “points”.
MINIMAL OVERHEADS
Allow for points to be collected and redeemed for services that have minimal overheads
for the clinic i.e. annual animal health checks or training for junior nurses.
USING YOUR WEBSITE
Create hits for your website by asking clients to check online as to the expiration
status of their points. Upon noticing points may be close to expiration, the client
will come into the business creating the opportunity for staff to up-sell more products
and services.
Frequently Asked Questions
PROBLEM: The cost of setting up a bonus points scheme is out of
my budget at the moment, as surely it is expensive.
SOLUTION: The integrated bonus
points system that you are able to set up, manage and track in-house already exists
in your software. The price of the key tags is retrievable by passing the cost (or
a little more for a profit) onto your clients.
PROBLEM: Clients already have their wallets full of loyalty cards.
I don’t want to bother them with another!
SOLUTION: CFL, in conjunction
with P2P Limited, have developed key tags to use creating convenience for the client
as they always carry their keys with them. No more stamping cards!
PROBLEM: Some of my products have a lower profit margin on them
than others, so I don’t want clients to be able to earn the same amount of
points on every product or service.
SOLUTION:
Each product or service can have up to 9 different and independent levels
of reward points available. Not only can you allocate how much each product receives,
but you can also allocate how much different categories of clients’ receive.
PROBLEM: My clients tell me that already staff take too long to
find the relevant records and are sometimes charged for the wrong service or product.
Surely this is going to get worse with Bonus Points?
SOLUTION:
The key tags help ensure speed and accuracy due to the individual barcode
on the back of each. This will aid in finding client records and assist with the
correct allocation of Bonus Points.
PROBLEM: I currently don’t have a website, so is the loyalty
scheme still relevant to me?
SOLUTION: YES! While the website
makes it easy and convenient for you and your client, they can still find out how
many points they have and what they can redeem them for by contacting your business.
However, if you would like a website, this is also something that CFL/P2P Limited
can help you establish, along with ways of encouraging your clients to use it thereby
reducing the number of incoming phone calls.
PROBLEM: One of my suppliers does not want to be a part of the
Bonus Points programme.
SOLUTION: You do not need
to allocate points to those suppliers’ products so when purchased, no points
are collected. However, you should explain to the supplier that they may see a slight
loss in sales as other suppliers are willing to participate in the programme. Clients
are more likely to choose products that they receive points on as opposed to ones
that they do not.
Tell me more!
To find out how you can have a Bonus Points system to maximise your business as
well as an integrated web site to help capitalize on your existing webpage, contact
P2P Limited today!
How do I set Bonus Points up in my VetlinkSQL, HairlinkSQL or PetlinkSQL?
Step One: Contact CFL Help desk (09 489 2280) to upgrade, for free,
to the comprehensive version of the software that has all the features activated
in it.
Step Two:
For best outcome, engage a CFL professional for onsite consultancy to setup your
loyalty system properly.
Step Three:
Click here and download Chapter 22 of the Manual.
Step Four: Show your staff different ways of maximising the system
for the best results for your business.
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