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Loyalty Program in VinAR-ERP

A Loyalty Program rewards customers for repeat purchases by allowing them to earn and redeem points. This encourages customer retention, boosts sales, and strengthens brand loyalty.

For example, if a customer spends $100, they may earn 10 points, which can later be redeemed for discounts or free products.

To access the Loyalty Program in VinAR-ERP, go to:
Home > Retail > Retail Operations > Loyalty Program

1. Prerequisites

Before creating a Loyalty Program, ensure you have:
✔ Customers added in the system.
✔ Sales Invoices to track purchases and reward points.

2. How to Create a Loyalty Program

Step-by-Step Guide

  1. Go to the Loyalty Program list and click New.
  2. Enter a Program Name (e.g., "Silver Membership").
  3. Choose the program type:
    • Single Tiered – One standard reward level.
    • Multi-Tiered – Different levels (e.g., Silver, Gold, Platinum).
  4. Set the Start Date and End Date for the program.
  5. Define which Customer Group and Territory the program applies to (or keep it open for all customers).
  6. Enable Auto Opt-In to enroll all customers automatically. Otherwise, assign the program manually in the Customer Master.
  7. In the program details section, enter:
    • Tier Name – The level a customer qualifies for.
    • Collection Factor – The amount a customer must spend to earn 1 Loyalty Point.
    • Minimum Spend – The minimum purchase amount required to earn points.
    • Conversion Factor – How much each point is worth when redeemed (e.g., 10 USD = 1 Point).
  8. Click Save.

3. Redeeming Loyalty Points

Conversion Factor

  • Defines the value of 1 Loyalty Point when redeemed.
  • Example: If 1 Point = $1 and the customer has 100 points, they can redeem $100 in future purchases.

Tracking Loyalty Points

  • The Expense Account tracks the financial impact of rewards given.
  • Expiry Duration ensures points expire after a set number of days.

4. Managing Customer Loyalty Points

Assigning a Loyalty Program to a Customer

  • Go to the Customer Master and link the appropriate Loyalty Program.
  • The customer's total earned points can be viewed on their dashboard.

Loyalty Point Entry Log

  • Navigate to Accounts > Retail Operations > Loyalty Point Entry.
  • This log keeps track of earned points and the invoices they are linked to.

5. How the Loyalty Program Works

Earning Points (Example)

  1. A Silver Tier Loyalty Program requires a minimum spend of $2,000, with 1 point earned for every $300 spent.
  2. A customer makes a $3,000 purchase:
    • $3,000 ÷ $300 = 10 Points Earned.
  3. The system automatically creates a Loyalty Point Entry for tracking.
  4. Once the customer’s total purchases reach $6,000, they move up to Gold Tier, unlocking better rewards.

🔹 Note: The minimum spend is cumulative, meaning it is calculated based on multiple invoices, not just a single purchase.

Redeeming Points (Example)

  1. The customer now has 15 points and wants to redeem them on their next purchase.
  2. When creating a new Sales Invoice, enable the Redeem Loyalty Points checkbox.
  3. The system automatically fills in:
    • Available Loyalty Points
    • Redemption Account
    • Redemption Cost Center
  4. If the conversion factor is 1, then 15 points = $15 discount.
  5. Once submitted, two Loyalty Point Entries are created:
    • One for the points redeemed (negative value).
    • One for new points earned from the current invoice.

🚀 Loyalty Programs in VinAR-ERP make it easy to track, reward, and retain customers—leading to increased sales and long-term business growth.

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