What are Points?
- Points are an abstract currency that is given to a customer based on transactions or other behaviours
- The value of Points are flexible in both how they are earned and the value they have when redeemed
- A customers Point balance can power what Tier, Status, Benefits, Credits and Rewards they are entitled to
- By default, Points in Omneo do not expire
How do Points work?
Points can be redeemed via Omneo financial incentives - Rewards, Benefits or Credits.
Determining the value of a Point is an integral part of designing a rewards program. The value of a Point is entirely configurable by brand and can be adjusted to achieve business-specific goals.
Types of Points:
Purchase points are only earnt once a transaction has been completed and directly relate to total spend. The value of a transaction Point is either: one to one, e.g. spend 1 dollar get 1 Point or a multiple, e.g. spend 1 dollar get 5 Points.
In the case of a purchase return, Points will subtract from the Point balance, which in turn may affect downstream Tier or other logic.
Purchase Point value can be modified based on customer attributes, such as Tier or Status.
Action Points are a set amount of Points associated with a particular action; example actions may be:
- Registering for an account
- Referring a friend
- Leaving feedback
Data is a brands best friend when it comes to determining Action Point value as historical information will be an indication of future ROI. For example: if the average order value for a new member is $20, you might be willing to offer $20 worth of Points to incentivise "Refer a Friend" however Points may only be redeemable once that Friend has made their first purchase.
Action Points are great when you want to allow a customer to do things other than spending money that will contribute to their Points or Tier progress.
If you want to reward customers primarily on actions and do not have a broader Tier program in place, Achievements may be more applicable.
Generally, a simple Point program is most effective as converting dollar value to Point value can quickly get confusing, fast understanding generally correlates with quick uptake.
When can Points be used?
Points must be used in conjunction with a broader Tier or Status program.
Points can not be Redeemed independently of a Reward, Credit or Benefit mechanic.
Points can not be earnt and redeemed in the same transaction.
Points can be issued within a few minutes of purchase or action.
The period required for Points to be available for redemption will be dependents on ERP vendor (typically near time).
Why use Points in my incentive program?
Points function as a form of implicit interest that brands can pay to their most engaged customers. Using them in conjunction with a Tier program is a great way to reward customers proportionately to their patronage.