As you might know, SP-1 has the ability, built in, to handle a rewards program. Recently we have been getting more questions about the ways this can be used.
Typically the rewards program is used in conjunction with a plastic card that can be used as a gift or prepaid card as well. There are two different paths to setting up the rewards system in SP-1.
The first concept is a buy X get Y free. This is typically setup on a specific menu group (coffee, pizza etc) and works by adding one point (or punch) to the customers account per item purchased. So, in a buy 10 get 1 free scenario, the customer would buy 10 drinks and then get 1 free. Essentially, this should work out to a 10% discount to the customer.
The upside to a Buy 10 get 1 Free? It’s easy for your customers and employees to understand. Everyone “gets” it when they see the promotion. The downside? It only works well with one menu category so you are limiting exposure. Also, it’s tough to base it on the particular item the customer orders and that can result in people taking advantage of the system.
The second concept is using a point per dollar system. This is setup so that every dollar spent earns a set amount of points. For simplicity sake, $1.00 equals 1 point. Once the customer has earned enough points, they can trade that in on a discounted item, a free item or even for money added to their gift card.
The upside to this? It’s very flexible and it opens the entire menu up for earning points. You can also select up to five redemption rewards for the customer to earn. The downside? It can easily become too complicated for the average customer to quickly understand.
Common promotions that are used out there with these rewards programs include:
Buy 10 get 1 free.
Double point Tuesday.
Spend $1 get 1 point.
35 points for a free drink (up to $3.50).
50 points gets 50% off your next order (up to $5.00).
50 points gets you $5.00 on your gift card.
If you are a roaster or sell coffee / tea in bulk, then another way to treat the program is to offer to supply a certain amount of coffee or tea for home use after 10 drinks or a certain amount of points. It’s a great way to help convert customers into drinking your product at home.
These are just a few ways people use the rewards program in SP-1. Let us know what your ideas are!