Overview

This article walks you through the step-by-step process of setting up a loyalty program, from initial configuration to customer enrollment.

Prerequisites

Before setting up a loyalty program, ensure:

✔ iVendNext Retail Suite is installed and configured.
✔ Customer data is imported or ready for enrollment.
✔ Accounting dimensions (Expense Account, Cost Center) are set up for point tracking.

Step 1: Create a Loyalty Setup

1. Navigate to Loyalty Setup

Go to: Home > Loyalty > Loyalty Program > Loyalty Setup.

Click the "Add Loyalty Setup" button to access the Loyalty Creation Screen where you can configure the settings.

2. Configure Basic Settings

• Code and Description: Enter a unique identifier (e.g., "ELITE_LOYALTY").

• Conflict Resolution Method: Choose how overlapping rewards are handled (e.g., Sum Total for combined points).

• Refund Method: Select whether points are revoked pro-rata or fully on returns.

3. Define Award Rules

• Award Points on Registration: Grant welcome bonuses (e.g., 10 points for signing up).

• Include Tax in Points Calculation: Toggle if tax should factor into point accrual.

• Do Not Award Points with Redemption: Prevent double-dipping if points are redeemed.

Step 2: Design Loyalty Plans

1. Create a New Plan

Navigate to: Home > Loyalty > Loyalty Program > Loyalty Plan

2. Select Plan Type

Choose from:

• Points Based

• Normal Plans: Standard point accrual (e.g., 1 point per $10 spent).

• Special Days Plans: Bonus points on holidays/birthdays.

• Tiered Plans: Multi-level rewards (Silver/Gold/Platinum) based on spends.

3. Set Calculation Rules

Under Plan Details, define:

• Criteria Group: Base rewards on Item Groups, Bill Value, or Promotions.

• Calculation Basis: Award points per Amount Spent or Quantity Purchased.

• Award Value: Specify points/currency granted (e.g., 5 points per $100).

Step 3: Configure Loyalty Levels

1. Add Tiered Levels

Go to: Home > Loyalty > Loyalty Program > Loyalty Level

• Entry-Level: 0–500 points → 5% discount.

• Middle Tier: 501–2,000 points → 10% discount + free shipping.

• Top Tier: 2,001+ points → 15% discount + VIP access.

2. Set Redemption Rules

• Points Conversion Factor: Define point-to-currency ratio (e.g., 100 points = $1).

• Max Redemption per Transaction: Limit redemptions to 20% of total purchase.

Step 4: Enroll Customers

1. Assign Customers to a Program

Navigate to: Home > Selling > Customer

1. Search for the customer.

2. Check Loyalty Members and select their program.

2. Verify Enrollment

• Check Loyalty Journal to confirm points are awarded.

• Customers receive a welcome notification (if configured).

Step 5: Test and Launch

1. Simulate Transactions

• Make test purchases to validate point accrual.

• Redeem points at POS to ensure proper deductions.

2. Monitor Performance

When a customer makes a purchase, they earn loyalty points based on the amount spent. A journal entry is created to record the earned points, typically debiting a loyalty points expense account and crediting a loyalty points liability account.

Use Loyalty Journal to track:

✔ Points earned/redeemed.
✔ Expiry dates.
✔ Customer tier upgrades.

Best Practices

Some of the best practices are:

• Promote Double Points Days: Boost engagement during holidays.

• Leverage Special Days: Automate birthday rewards.

• Audit Quarterly: Adjust point values based on redemption rates.

Troubleshooting

Here’s a quick look at some common issues you might run into.

❌ Points Not Awarded:
→ Verify the Loyalty Plan is Active.
→ Check if items are excluded (e.g., discounted products).

❌ Redemption Errors:
→ Ensure sufficient points are available.
→ Confirm no Maximum Redemption limit is breached.