Customer Loyalty Program Administration

The B2C environment is very competitive. Merchants craft various marketing plans to create Unique Value Prepositions for their customers. One strategy is to leverage a Customer Loyalty Program or Rewards system to encourage their existing customers to make re-purchases. It has been said that the cost to re-engage an installed base customer is much lower than the cost to pursue a new customer.

Modern POS Systems may have in-built software modules to administer a Customer Loyalty Program.
Reward cards may be scanned at the POS system to give special price discounts to VIP shoppers.
Special or tiered discounts is easily programmed into the POS to apply different discounts according to time of purchase (e.g. promotion period) or category of shoppers (e.g. Platinum membership vs. Gold membership)

Increasingly, gift cards are replacing traditional shopping vouchers. Compared with the shopping voucher, the advantage is unspent value on the cards may be used at a later time, hence encouraging customer revisits. The POS system may be used to top up or deduct value on the gift card.