For your Loyalty plan to be a success, you must make sure that you choose the right plan, and ensure that your points and tiers are set up in such a way that your customers will immediately want to sign up and become members.
Here is a description of these components and some frequently asked questions.
We have different types of plan to cater for different business models. They ensure that the workflow for engaging with and rewarding your customers fits the use cases that underlie it.
Currently we have one active plan type: Points.
You cannot change your plan after you have activated your Loyalty account. If you do need to, you must contact Emarsys Support.
Once a plan is active, you can only change the actions or benefits in it once per quarter-year. In the last 14 days of each fiscal quarter, you can prepare changes to the plan and then activate them at the start of the next quarter.
Give your Loyalty plan a branded name that resonates with your customers and clearly describes the benefits they will receive by joining it.
Points are the standard currency for Loyalty. You define how customers earn them (e.g. through spending money or engaging with your brand), and then control how they spend them.
Points are described in two ways:
- Balance points - These are points to spend. They can be redeemed, and can expire. Each point earned is added to a customer's Wallet, and each point redeemed (or expired) is deducted from it.
- Status points - These points cannot be spent, nor can they be redeemed, and do not expire. They are accumulated during the time period you define for tier allocation. When a customer has accumulated enough status points, they join a higher tier. Once per year (every 12 months or on January 1st, according to your settings) this total is reset to zero.
Treat your points like currency and give them a branded name that resonates with your customers.
How valuable should I make my points? Can I assign a value higher than $1 or €1?
In our experience, it is best to keep the value of your points low and let customers accumulate them in large numbers. We do not allow you to assign a value higher than $1/€1 to a single point. In any case, you control their value when you define the number of points required to redeem vouchers or benefits.
How does point calculation work for decimals?
We award points for every full currency unit spent, but we remember the leftover decimals from the last spend. For example, if a customer spends $1.50 today, they will receive 1 point (if the ratio is 1:1), with $0.50 being stored. And if they spend $2.90 tomorrow, that is added to the $0.50 (total $3.40) and they will receive a further 3 points, with the leftover $0.40 being stored until the next purchase.
Can I assign fractions of points per currency unit spent?
No. You can only use whole numbers for both points and currency units.
Can I assign extra points to specific products?
Not directly. You can only assign a different rate of points on a category level. You could create a special category for a particular set of products, but you should be careful as that will have knock-on effects on the rest of your product data file.
How does balance points expiration work?
If you have set an expiration date for balance points, Loyalty monitors when points are acquired and when they are redeemed, and makes sure that the oldest points are redeemed first. Balance points will only expire if two conditions are met: they are older than the expiration period, and no (or fewer) points have been redeemed since then.
Tiers determine the level of benefits that a customer can enjoy from your Loyalty plan.
- Every plan has a starting tier which has no requirements for entry.
- You must add at least 1 more tier, and can have up to 10 tiers in total.
When you create a new tier it is always added above the highest tier - you cannot create a new tier and insert it between two existing tiers. Likewise you can only delete the highest tier; all the customers in that tier will automatically be added to the tier below.
You define requirements for entry in terms of required spend and number of purchases. These two requirements must both be fulfilled - you cannot define a minimum spend or and minimum number of purchases.
If you do want to have either/or requirements for entry, you can define one tier for points and another for purchases, and then treat them identically in terms of benefits and redemption settings.
How many tiers to create?
In our experience, 3-5 tiers will provide the best results in most situations.
If you are considering using more than 5 tiers, please do so, but feel free to discuss this with your Success Manager first.
Just remember that more tiers require a greater investment in customer data, as you will need to know more about your customers in order to be able to differentiate between the tiers with more accuracy and relevance.
Distributing your existing customer base
When you set up your Loyalty plan you must decide what to do with your existing customer base. The option you choose will depend on whether you already have data from a previous plan.
Customers are automatically promoted to a tier as soon as they have fulfilled the requirements for entry. They then have to fulfill the yearly requirements to stay in that tier otherwise they drop down to the one below (you can also choose to have no drop-out scenario).
Can I use my own icons for the tier badges?
Currently no. You can either select icons from our library or not use icons at all.
Why am I not allowed to set requirements for entry into the first tier?
The first tier is the entry level into the Loyalty plan. If you want to set entry requirements before customers can receive benefits associated with the lowest tier, then start your redemption plan on tier 2 and allow no redemption for tier 1 members.
Can I award more than one reward per tier?