Loyalty program for a store: how to implement it without overpaying

Acquiring a new customer costs more than retaining an existing one. That is why a loyalty program is not a whim but a revenue growth tool. We explain how to implement it in a store wisely so that it works for profit, not expense.

Why a store needs a loyalty program

• Repeat purchases. Bonuses and discounts bring the customer back to you, not to a competitor.
• Growth of the average check. To get a bonus or move to a higher discount tier, the customer buys more.
• Customer base. You know who buys what and can make personalized offers.
• Communication channel. Customer contacts allow you to inform about promotions via SMS, Viber, or Telegram.
• Analytics. You can see which products are bought together and who your most valuable customers are.

Types of loyalty programs

Discount-based

The customer receives a fixed or cumulative discount. Simple and clear, but it directly reduces your margin on every purchase.

Bonus-based (cashback)

Part of the amount is returned as bonuses that can be spent on future purchases. More beneficial for business: bonuses encourage customers to return, and unused bonuses "expire." This is the most popular format in Ukraine.

Multi-tier

The more a customer spends, the higher their status and the larger the percentage of bonuses or discount. It motivates them to buy more and stay with one store.

Cashback + personalized offers

A combination of bonuses with targeted promotions based on purchase history. The most effective, but it requires an analytics system and accurate data.

Carriers: from plastic to phone

• Plastic cards. Familiar, but they have printing costs, and customers often forget them.
• Card by phone number. Nothing needs to be carried — the cashier identifies the customer by number. The most convenient and cheapest.
• Electronic card in an app or Apple/Google Wallet. Modern, with no plastic costs, always at hand.

Integration with the POS — the main thing

A loyalty program makes sense only when it works directly at the POS. The cashier finds the customer in seconds, accrues and redeems bonuses, applies a discount — and all of this is recorded in accounting.

What to pay attention to:

1. Compatibility with your software fiscal registrar and POS software. Bonuses and discounts must be correctly displayed on the fiscal receipt.
2. Connection with accounting (BAS/1C). To see margin taking into account discounts and bonuses.
3. Speed. Customer identification must not slow down the queue.
4. A single base for the network. If there are several locations, bonuses must work at all of them.

How not to overpay

1. Do not take on excessive functionality. A small store does not need a complex CRM with mailings. Start with a simple bonus mechanism.
2. Use the capabilities of your existing POS. Many POS systems and accounting programs already have a built-in loyalty module — you will not have to buy a separate platform.
3. Avoid excessive discounts. Calculate what bonus percentage you can afford without harming margin. Usually 3-7% cashback is a healthy benchmark.
4. Card by phone number. You save on plastic printing and immediately collect contacts.
5. Launch in stages. First basic bonuses, then, if needed, tiers and personalized promotions.

How to launch a loyalty program step by step

1. Define the goal. Increase repeat purchases, raise the average check, or collect a customer base — the mechanics depend on this.
2. Choose the type and percentage. Most often this is 3-7% cashback with the ability to redeem part of the next purchase with bonuses.
3. Set it up at the POS. Connect the loyalty module to the POS software and fiscal registrar, check how it displays on the receipt.
4. Train cashiers. How to find the customer, accrue and redeem bonuses, and explain the rules to the buyer.
5. Tell customers. Inform them about the program at the POS, on social media, via SMS or Viber.
6. Analyze. Monitor how many customers return and how the average check changes, and adjust the terms.

Communication with customers

A collected base is an asset only when you use it. Remind customers about bonuses that will soon expire, inform them about promotions and new products, and wish them a happy birthday with a personalized discount. But do not overuse mailings: too many messages annoy people and lead to unsubscribes. One or two relevant touches per month work better than daily spam.

Legal nuance: personal data

By collecting phone numbers and customer contacts, you work with personal data. Take care of consent to data processing and a correct privacy policy — this is a requirement of Ukrainian legislation and protection for your business.

Common mistakes

• Bonuses that are too generous and eat into profit.
• Complex rules that customers do not understand.
• Bonuses that cannot be easily spent — the customer becomes disappointed.
• Lack of communication: the customer does not know how many bonuses they have.

Where to start

SIRIUS will help select and configure a loyalty program integrated with your POS and BAS/1C accounting. We will take into account the type of store, customer flow, and budget so that the system works for profit. Contact us — and your customers will return more often.