SP-1 has a very powerful gift and rewards program that is 100% free. I thought I’d be fun to cover the three different options we have for rewards in the system.
1) Buy 10 get 1 free. There are a number of variations on this but the basic premise is that a customer gets one free drink for every ten they buy.
Pros: The great thing about this is that it is simple and easy to explain. Your customers will feel that they are getting something free. The theory is that customers keep coming back as they have that next reward to look forward to.
Cons? It’s only really available in one category. Also, it encourages customers to buy cheap drinks and then ask for a more expensive drink as their free one. That can actually be a pro however. We have customers that encourage the free drink to be something the customer does not normally try.
2) Points. This is a variation on the above. Instead of earning rewards based on the quantity of drinks purchased, it is based on the dollar amount purchased. Usually one point equals one dollar. For example – 35 points is a $3.50 drink.
Pros: It stops the guys from buying $2.00 drip and then getting a $5.00 mocha. Also, you can have up to five levels of redemption. For example, 35 points is $3.50 off. $50 points is $3.50 drink and a muffin and so on. Finally, you can use this on more than one category. This is a more flexible version of the above.
Cons: It’s difficult to explain quickly to customers.
3) Percent Back. This is a completely different thought. Instead of points or punches, customers earn a percentage back on each purchase. Usually 5%-10%. This cash back goes on the customer gift card for their next purchase.
Pros: It’s free money to the customer. They can spend it whenever and however they like. This also keeps the customer thinking they have cash on their card. It’s pretty easy to explain as well. From a psychology standpoint, the customer is never getting a free drink. They are always purchasing it with their gift card money. This means you are rarely devaluing your product. Finally, you can easily change the percentage or end the reward at any time because the customer automatically has their money. With the other two methods it can be hard to end the program because the customers perceive that they are losing points or punches.
Cons: They are never really seeing the “free” aspect of the reward.
There you go! Give us a call and see it in action.
SelbySoft has added two new options to our already robust rewards system. Currently SP-1 supports the following:
Buy X get 1 Free: This is a simple method. For example: Buy 10 coffees get 1 free.
Points: In this system you earn points per dollars and then can redeem them at one to five different levels. For example: Every $1.00 spent earns 1 point. You can then redeem 35 points for a free 16oz or 50 points for a small sandwich.
The new method of rewards involves earning a percent of your ticket as a reward. For example: You offer 10% back on all coffee purchases. SP-1 will then automatically keep track of that and give them the ability to apply that as a discount on the ticket! In the example below, the customer already has $4.12 in rewards that can be applied to this ticket.
Of course, like all reward methods, you can specify if they earn points, punches or dollars when a discount is used, limit this by menu categories and sized etc.
The second change that has been made to SP-1 is that you can now specify which group sizes you want to include instead of only excluding. For example, in our current versions you can specify that a customer earns points on coffee drinks but exclude 8oz. With this new method, you can have a different amount of punches or points you want the customer to earn based on the size of the drink. So, you could have 12oz drinks earn a different amount of points than 16oz drinks.