This writing will be a closer look on reward point interaction for Magento 2 POS.
It seems that we are in the era of online business since the recent years has been a boom in e-Commerce. The rapid development of e-Commerce has exerted its influence and led to many changes in retail industry. In the competitive market with a plenty of great and various choices, the quality of products has to share its importance with customer services and recommendation.That’s why retaining loyal customers while attracting new ones is becoming increasingly vital.
As a result, loyalty programs play an essential role in sales boosting and marketing strategy of any businesses not except for e-Commerce stores. It is not surprising that 75% of customers say they prefer companies that offer rewards. Among these loyalty programs, customer reward point is one of the most popular and effective one. In this writing, we will discuss some essential functions of reward point interaction for Magento 2 POS to see why it is essential for your Magento 2 POS store.
I. What is reward point interaction?
Firstly, let’s see what is reward point interaction and how does it work.
Reward point interaction is a kind of loyalty program that allows the customers to earn points when they take certain actions on your site or on your store such as purchasing products, registering, rating, reviewing, etc. Then, they can use these points to make payment, have discount or exchange gifts.
With the Magento 2 POS store, you can implement customer reward point program for your online shop (digital rewards) as well as your multiple outlets (in-store rewards).
Reward point interaction for Magento 2 POS works in a simple process. First, the admin sets out the rules for reward point system. Then, customers interact on the site or conduct transactions offline to get points. Finally, the customers can use these points for payment, having discount or exchanging gifts.
II. Why do we need reward point interaction for Magento 2 POS?
The most important and obvious benefit of reward point interaction as well as other loyalty program is that it significantly increase rates of customer retention. Do you know that customers who have purchased your products 2 times before are 9 times more likely to buy goods at your store again compared to the new ones? (Adobe) It’s not too surprising because reward program helps to promote loyalty as well as build up, maintain and enhance long-term relationships between your brand and customers.
In addition, they are also less likely to come to your competitors because they want to continue to accumulate reward points at your store. Reward points will make the customers develop a close-knit relation with your store because you can offer them attractive profits.
The second point we want to mention is that the increase in customer retention will be accompanied by the growth in potential profit. According to Harvard Business Review, only 5% increase in customer loyalty would lead to 25-125% increase in average profit per customer. The loyal customers have a tendency to spend more on buying products because you have gained their trust.
Next, reward point interaction for Magento 2 POS can also helps your online store as well as multiple outlets attract more new customers. It is much likely that the customers who prefer your brand will recommend to their friends, relatives, colleagues, etc. If you have impressive reward point program, the new customers will definitely want to make a try, purchase products and joint your customer reward point system.
Finally, costs for serving loyal customers are quite less compared to that spent on acquiring new ones because you can reduce your budget for customer education and customer approaching. That’s why Magento 2 POS reward point is a smart and effective program in your marketing strategy.
III. Tips to run an effective and successful reward point interaction system
In the previous part, we have given you some major benefits of reward point interaction for Magento 2 POS. In this part, we will provide you with some useful advices that help you build successful customer reward point system for your Magento 2 POS.
- Firstly, keep earning and spending points system simple and easy to understand and conduct. The customers will be easily quit any reward point program if they have to experience a long and complicated process of earning or spending points. 57 % of Americans abandoned loyalty program because they have to spend too much times earning points or rewards (zinrelo). That’s why you should make your POS reward point interaction as simple as possible.
- Secondly, reward point for various actions not only for purchasing. One of the best way to increase chances the customers participate in your reward point program as well as lengthen time they engage with your store is to make the customers to earn points by taking various actions in your store such as buying products, creating an account, reviewing products, rating, etc.
- Next, offer your customers worth earning points. If you set the threshold too high to achieve or offer the customers poor value of reward points, it will be unlikely that they will take part in your reward point system.
- Finally, make customers feel special and belonging to exclusive group. You should also offer the most loyal customers “VIP” status and exclusive access to express that you really care about them and keep them engaging longer with your store.
IV. Essential functions of reward point interaction for Magento 2 POS
In the previous part, we have given you some useful tips to run a successful reward point program. Now, let’s look at the important features of reward point interaction for Magento 2 POS to understand why it can help you achieve a successful loyalty program.
1. Earning points
As the store admin, you can set out rules for earning and spending points. In terms of earning points, as we have mentioned in the previous part which is about the tips to effectively run reward point interaction, you should offer earning points for various actions of the customers on your online shops as well as in multiple retail outlets. With the help of Magento 2 POS reward point, you can easily set rewards for variety of behaviours or interactions from customers such as registration, subscribing, product review, rating, making purchasing,… By this way, store owner can satisfy more customers and make them engage longer with your store.
2. Spending points
While the admin can set various ways for customers to earn reward points, the customers can completely manage their points and decide how many points they want to spend for a particular purchase. The action of spending points can take place on the Shopping cart, Checkout pages or at any physical stores of your retail chain.
3. Managing reward point interaction
Magento 2 POS reward point allows you to effectively manage your reward point interaction.
On the customer side, they can track their current point balance at anytime. In addition, they can also check details of each spend as well as any changes with their point balance.
As store admin, you can
- Flexibly set out rules for obtaining reward points and spending reward points
- See and track all point transactions from the admin interface
- Adjust customer reward point from the backend (store admin can add or deduct points from the point balance of customers when necessary)
- Refund by points. This is a smart way that benefits both customers and store owner. The owners don’t have to refund in cash. Instead, they add points into the point balance of the customers and then the buyers can spend them for the next purchase.
In this writing, we have given you an overview of reward point interaction for Magento 2 POS: what is reward point interaction, the benefits it can bring to business, the ways to achieve successful reward point program and the feature of POS customer reward point that help you achieve it. Hope that this writing is useful for you and after reading, you can have your answer to the question why reward point interaction for Magento 2 POS is important to your business.