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11 January 2021

POSitive Loyalty Program

By Sean Ogino

What is a loyalty program?

Turning customers into brand loyalists requires a repeatable process that incentivizes them to keep buying from you. A loyalty program is essentially the process of rewarding customers through structured marketing strategies for their frequent or continued engagement with your brand. The more they spend, the more rewards they receive. If you put customer preferences at the heart of your marketing efforts and execute a program well, customers feel good about purchasing from you and that will give your business a competitive edge against your competitors.

Benefits of Loyalty Programs

1. Customer Retention
The primary motive behind a loyalty program is to retain customers by rewarding them for their repeat purchase behavior. In fact, Khan and Khan (2006) have also said, “Loyalty exists when a person regularly patronizes a particular (store or non-store) that he or she knows, likes and trusts.” In short, the customer loyalty program is a tool to retain customers by giving them a solid motive to buy again from the company and establishing habits.

There are many studies which have explained this relationship between loyalty program and retention rate. One European study found that customers’ relationship perception of a Dutch financial services company’s loyalty program explained about 10% of the total variation in customer retention and customer share. Annex Cloud’s own customer loyalty statistics—taken from our clients—have shown that a well-implemented loyalty program can achieve the following:

  • Loyalty programs increase overall revenue by 5-10%.
  • Loyalty members spend 5-20% than non-members on average.
  • Loyalty program members buy 5-20% more frequently than non-members.
The direct impact that customer retention strategies have on the bottom line of business is a well-established fact. A business with a 60% customer retention rate is losing 3-4 times as many customers a business with 80% retention rates. Besides, increasing customer retention by just 5% boosts profits by 25 to 95%, according to the advisory firm Bain & Co. Indeed, out of the list of pros and cons of a loyalty program, retention is likely the ultimate benefit.

Advantage of customer retention
As a business owner in today’s competitive and packed marketplace, you’re hyper-focused on growth. A small change in retention can lead to big results. Hence customer retention is vital. Here are some benefits: 

  • Retention is more cost-effective than acquisition. According to a report, it costs five times as much to bring in new customers compared to selling to existing ones. 
  • Repeat customers deliver better returns. Research states that loyal customers buy 90% more frequently, spend 60% more per transaction, and deliver 23 % more revenue and profitability than first-time purchasers. Therefore, retention is a great way to grow and increase profits.
  • It’s a known fact that people get strongly influenced by referrals from family and friends. Hence loyal customers are the best source of referrals and new business. Customers onboarded through a referral tend to have a much shorter (and cheaper) sales cycle.
  • Customer retention also helps businesses improve CLV (customer lifetime value) and reduce churn.

Disadvantages of customer retention
  • Investing in customer retention both in terms of price and time can prove to be steep. 
  • Businesses trying to achieve an efficient customer retention rate may not focus on the needs of new customers. There may be chances of new customers being overlooked by brands in a hoard to satisfy their existing customers. 
  • If you choose the wrong loyalty partner, you may end up investing heavily in the partnership but not reap the benefits.

2. Relevant Customer Data and Consumer Trends
Consumer data gets recorded in the company’s database as soon as a shopper registers for a loyalty program. Companies can use this data for omni-channel, offline, and ecommerce segmentation, profiling their best customers and tailoring their offerings to specific groups of consumers. As loyalty program data gives the company a complete view of customer behavior, buying habits, and preferences, the company can use this information to invigorate its inventory management, pricing, and promotional planning. This data also enables marketers to measure the results of special promotions based on additional purchases, use of additional channels, or decreased time between purchases.

The reaction of Tesco’s chairman speaks volumes about how efficient loyalty programs are in extracting valuable information from a customer. He has said, “What scares me about this [loyalty program], is that you know more about my customers in three months than I know in 30 years!”

3. Higher Cart Value
As explained in the above point, a company can use collected data to cross-sell and up-sell. It can offer extended warranties after an item is purchased, suggest accessories that go well with the purchased item, and provide discounts on related purchases. Moreover, the loyalty program can also bring relief by increasing demand in slow seasons. Its best example is an airline mileage program that is available only on selected flights. Due to less wastage, such targeted promotions are prone to yield more satisfactory results.

4. Reducing Unprofitable Customers
One of the less frequently considered items on this list of the pros and cons of loyalty programs is that they let companies shed unnecessary weight. A well-designed loyalty program allows companies to segment customers and discover profitable and unprofitable customers. It helps them in dropping off the customers who only buy the discounted lines and avoid premium range almost on a regular basis. These customer profiles can cost more money than they generate.

Through a loyalty program, companies can reward better customers only and thereby minimize the payout to not so profitable customers. Without an iota of doubt, this is the most efficient way to retain the customers from whom the company generates the most profit.

5. Better Customer Communication
A loyalty program offers a direct line to customers, making communication much easier. Aside from announcing new products/services, promoting sales, and the like, a useful item on this list of the pros and cons of loyalty programs is that they facilitate recalls when necessary. This is possible due to the purchase date and barcode of the recalled items. The recall notice gains more weight and significance, as it is based on the consumer’s actual purchase of the affected good. Compared to a store sign or newspaper notice, the chance that this email-borne recall notice will get read by the people is high.

POSitive Point of Sale Loyalty Program

POSitive has a fully-fledged, configurable Loyalty function. The retailer can also create their credit and COD customers as Loyalty Customers. To configure Loyalty within POSitive POS just select the function in the Program Options:


And specify the value of a point during sales as well as during redemption of points. In the example your customer will get 1 point for every R10 spent with you, and they will be able to buy for 10c with every point they have.


Scan or lookup the Loyalty Number any time before the transaction is tendered for the client to earn points.


Even when redeeming points to pay for goods the transaction will earn Loyalty points.


At any given point you can get a report of a specific Loyalty customer's transactions and how they earned and redeemed points. 
This information can also be used to determine spending patterns and provide you with the opportunity to do customer specific marketing.

To learn more contact POSitive Support










08 December 2020

Year End 2020

POSitive POS SA would like to make use of this opportunity to wish all our customers and partners a Merry Christmas and a Prosperous New Year!

Please ensure that you do a Year End on your POSitive Point of Sale on the last working day before the 31st of December, however if you do not do it you will be forced to do a Year End on the first day you log on after the 31st of December. Please also be certain to make a backup before you do your Year End. See how to do a backup by clicking here.

ONLY DO THE YEAR END ONCE! ALSO EXPORT OR SAVE ALL THE CUSTOMER, SUPPLIER AND STOCK REPORTS BEFORE DOING A YEAR END.

To do a Year End follow these easy steps:

Please note that if you do not make a backup and do your Year End and then want us to reverse the actions of the Year End a specialist will be required to assist you at double our Support cost.

 If you have any queries contact Support

01 December 2020

POSitive Training

 We at POSitive POS SA have decided to start an online training academy providing training in all aspects of the use of POSitive Point of Sale as well as retail in general. We would like to start these training classes early in the new year. These classes will be provided using Zoom™. We would like to find out from you, our customer or prospective customer, how you would like us to proceed with this.

Please cast your vote by clicking on the following link

Vote here...

03 November 2020

POSitive Restaurant - Do you know what you get for free?

 POSitive Restaurant (Touch)

When looking for a Point of Sale for your restaurant, take away, pub & grill or shebeen; look no further. POSitive Point of Sale ship with a FREE Touch Screen / Restaurant version. 

Why free? You might ask. Well actually it is not free, you still need to purchase POSitive Point of Sale our feature rich cash and stock management POS software. So what are you getting free with the restaurant version?

  1. Touch screen capability - This allows you to install it on a touch Screen for easy usage by your waiter staff without a keyboard or mouse.
  2. Dine In - Waiters select their tables from a graphical representation of your floor layout and add items to the table while your customers dine. On completion the waiter prints the bill and allow the customer to pay.
  3. Table layout - The floor layout can be configured and even re-configured before you open your restaurant on a daily basis to show the layout of your tables.

  4. Kitchen printer - POSitive POS allows you to configure up to 10 kitchen printers and you link any menu item to any kitchen printer during the configuration.
  5. Cooking messages - This is where you define the cooking messages to assist your chefs to prepare the food exactly as per the customer's requirement. Will that steak be rare, medium rare, medium or well done?
  6. Custom button setup - You have a 3 x 5 (15) button main menu which each opens up to a menu with unlimited buttons   
     
  7. Table management - Here you can assign waiters from one table to another, merge tables and split tables.
  8. Take Away - This function allows you to quickly take orders from your customers and send the orders to the predefined kitchen printers for quick preparation. 
  9. Delivery - Typically the same functionality as Take Away except that you can capture your customer's address detail for your delivery person. This is done by telephone number so that return customers can easily be loaded without re-capturing their address detail.
  10. Gratuity - On Dine In, Take Away and Delivery a separate Gratuity can be captured and a Sales by Waiter report with Gratuities can be printed for each day or shift.
  11. EFT Payment Gateways - Currently the Touch module can make use of the following 3 Payment Gateways:
    • Vexen
    • Yoco
    • Netcash QR
    • Snapscan and Zapper is currently being integrated and will be available by the end of 2020.
To get your restaurant up and running with POSitive ask our support to provide you with our dummy guide to setup and configure your restaurant.

02 November 2020

Fresh vegetables in Harare thanks to POSitive!

Misrah Logo 

Cruscate Investments


Our Partner, Misrah Innovative Solutions, based in Harare, Zimbabwe implemented POSitive Point of Sale at their new customer, Cruscate Investments T/A Mlambo Holdings.

Cruscate Investments is a locally owned shop, which provides good quality, fresh vegetables to wholesalers and retail supermarkets. Cruscate Investments is situated at number 45 Cunningham Rd, Greendale, Harare, Zimbabwe.

Installation and training was successfully done in two days. Cruscate Investment  is happy with the service they received.

Misrah Innovative Solutions can be contacted at: 
Address: 29 Carsberg Avenue Alexandra Park, Harare, Zimbabwe, Zimbabwe
Tel: +2638677116312 / +263773531346 



11 October 2020

KwaZulu Natal and Eastern Cape gets a Partner!

 Safe IT Solutions

POSitive POS SA has signed up Safe IT Solutions who is a Durban Based Company that specializes in POINT OF SALE, CCTV-DVR Systems & I.T Services. 

Mr Saeed Essack said: "We have grown accustomed to working with companies of all sizes. Providing QUALITY solutions to keep a tight control on their CASH and COMMODITY. We enjoy applying our minds together to deliver a UNIQUE solutions for any business." and thus they have decided on POSitive Point of Sale to partner with as POSitive Point of Sale will assist their customers to control their stock and their cash.

Safe IT Solutions has customers throughout the whole of KwaZulu Natal and most parts of Eastern Cape and will be able to assist you if you are a retailer looking for a Point of Sale solution in these provinces.

They can be contacted at:

Tel: 073 314 3003

Namibia is growing!

 


POSitive POS SA welcomes Lambert Software Solutions who are a Software and Hardware supplier to the Retail, Wholesale, Distribution & Service, Restaurant, Fast Food and Bar industries.

Pierre and his team are already a well known player in the Retail space in Namibia and would like to extend their existing product offering. They selected POSitive Point of Sale because of it's feature richness, price point and large customer base in the market.

Lambert Software solutions can be contacted at:

Tel: +264 (0) 61 23 6000

POSitive Loyalty Program

By Sean Ogino What is a loyalty program? Turning customers into brand loyalists requires a repeatable process that incentivizes them to keep...