Describe loyalty programs
Loyalty programs are increasingly being used by retailers and businesses around the world to incentivize customers, reward them for their interactions with the brands, and build ever-growing loyalty to the retailers' products.
A loyalty reward program can both accelerate and lengthen the customer relationship. Therefore, organizations must develop a system that educates their customers about the rewards of loyalty, so they're motivated to continue earning them.
Commerce offers simple or rich loyalty program capabilities, which range across legal entities and across all the supported Commerce channels. Commerce provides a flexible solution to include any of the following options as part of the organization's loyalty strategy:
Establish earning and redemption rules so the process of earning loyalty points and determining the options for redeeming rewards is clear.
Track participation in the loyalty programs.
Build loyalty programs that represent different reward incentives. For example, you can build loyalty program tiers to represent the customer’s level of engagement and offer greater incentives to those who are closest to your brand.
Issue loyalty cards from any Commerce channel and link them to one or multiple loyalty programs that you have established.
Link loyalty cards to customer records so customers can accrue points from multiple loyalty cards they might have.
Transfer loyalty reward balances between friends and family members or adjust the loyalty points to meet customer demands that comply with your loyalty program policies.
Multiple interdependencies exist between components of the loyalty functionality that you should consider when preparing the exact configuration in the system. Those interdependencies are illustrated in the following image. For instance, before setting up loyalty components, you must create discounts and price groups.
Let's start with prerequisites. First, you set up discounts, then you set up price groups. Separately, you set up channels and then the loyalty payment method. With the prerequisites completed, you can proceed to setting up loyalty components. The price groups serve as prerequisites for setting up loyalty programs. This process involves setting up date intervals, tiers, reward points, and tier rules. Then you'll set up loyalty schemes, which is why you've previously set up channels and loyalty payment methods. For setting up loyalty schemes, you select a loyalty program, select channels, set up earning rules, and set up redemption rules. Finally, you set up loyalty cards by selecting loyalty programs, assigning card numbers, and assigning customers. Customer assignment is optional.
The following video explains how to configure the loyalty program.
These loyalty programs are applicable while performing the commerce transactions.