Reward Points

Setting Up A Reward Points Program

When setting up your points system, consideration should be given to the points percentage which customers will receive but also to the amount of money they spend before a single point is earned. The higher the monetary value in the Points Ratio, the more the customer must spend to earn the points. Conversely, the lower the number, the more points they will earn.

Access: Main Menu > Invoice (blue section) > Options tab > More Options… > Rewards tab

Rewards

In the example above, customers receive 10% off their purchases and they only need to spend $10 to earn $1 off their next purchase.

The two examples (shown below) both earn 1% off purchases. But, in Example A, a $90 purchase earns no points while, in example B, it earns 9 points. The customer in Example A will not earn a $1 discount until they have an invoice with a subtotal greater than $100. While the customer in Example B, will collect points for all purchases greater than $10 and only needs to spend another $10 to earn $1 in reward points.
  Example A
    $100 = 1 point  and  1 point = $1.00
  Example B
    $10 = 1 point  and  10 points = $1.00

Reward Points Ratio: This will dictate the number of points given to the customer. This allows you to enter a monetary value which must be spent in order for the customer to earn one point. This is only calculated on the sales total before taxes. FrameReady automatically defaults down. E.g. If the subtotal is $19, the customer would only receive one point. If it is $22, the customer would receive 2 points.

Reward Points Redemption: This number dictates how many points the customer must earn before receiving one Dollar, Euro, or Pound.

Reward Points may be used to pay sales tax Check box: Leave this box empty if customers must pay the tax(es) on sales to which Reward Points are applied. In some states, a monetary value earned through a point system cannot be used to pay sales tax. Check with your accountant before checking this box.

Done returns you to Main Menu or Invoice screen depending on where you began this procedure.

 

Tracking Reward Points – Contacts file

FrameReady keeps a log of all points earned, redeemed, or modified in the Invoice/Rewards tab in the Contacts file. Therefore each time an Invoice is created or accessed, the Rewards Points are entered or removed.

Reward Points are calculated per Invoice and not per individual line item. All items contribute to the Reward Points.

Image 4

The ratio of dollars to points can also be changed for the individual customer on their record in the Contacts file. This will over-ride the default set up in the Main Menu.

Entries can be found in the Notes column:

  • Data Entry – the Invoice was accessed.
  • Exit Data Entry – the Invoice was closed.
  • Redeemed – Reward Points were added as line items.
  • Deleted Line – Reward Points were removed as line items.

The Points column shows the number of points given or removed on each invoice. Points are added when you exit the Invoice (Line Item Entry) screen and removed if you access the Invoice (Line Item Entry) screen. This prevents points generated on the current sale from being applied to the current invoice. The points for the current invoice will not be calculated until you leave the Invoice (Line Item Entry) screen.

Points can be manually entered on the customer’s record in the Contacts file under the Invoice/Rewards tab by scrolling down to the last available field and typing in the number of points to be added. The reason why the points were given should be typed into the Note field.

For more information about this screen, see:  http://frameready.com/know/invoices-tab/

Redeeming Reward Points – Invoice file

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There are two different ways to redeem reward points: as a coupon or as a tender. If entered as a coupon, the points are shown in the Line Item portion of the invoice. If the points are greater than the amount in the subtotal field, the points will zero out the invoice resulting in no tax(es) being applied. It also reduces the subtotal (and the amount of points) the customer receives on this sale. If you cannot (or do not want to) use points to pay for taxes, then the reward points should be redeemed as a tender. In this method, the Reward Points appear in the payment section of the invoice. The customer receives points for the amount in the subtotal field. If the checkbox is set to not use points to pay for taxes, then the customer needs to pay for the tax by another  (E.g. cash, etc.).
As a coupon:
Rewards coupon
  1. Click on the Apply Reward Points button, in to the top centre of the Line Item Entry screen, to redeem the reward points earned by the customer. The number of points earned by the customer appears below the button. The amount also appears on the printed invoice.

    When redeemed, the points are automatically added to the Line Items, under the last purchase, as a negative amount. The number of points are redeemed for the dollar value identified in either the Rewards Tab on the Main Menu, or on the Customer’s record in the Contacts file.
As a tender:
IN rewards
  1. Click on the Enter a Payment button and select Reward Points from the Tender drop down list.
  2. Click one of the Done buttons.
    A Reward Points dialog box appears to identify the monetary value to be used on this invoice (and the number of points to be redeemed). If there is a balance, it will need to be tendered by another means.
  3. Click OK to use the points or Cancel.

Important Notes on Redeeming Reward Points

  • When redeemed, the number of Reward Points are reduced for the assigned Contact.
  • The number of points are redeemed for the dollar value identified in either the Rewards tab on the Main Menu < Invoices section > Options tab > More Options button, or on the Customer’s record in the Contacts file (the Contact over-rides the default set from the Main Menu).
  • Regardless of which option is used, the monetary amount of the points redeemed also appears on the printed invoice.
  • Once redeemed, this operation cannot be undone. Points can be manually entered on the customer’s record in the Contacts file under the Invoice/Rewards tab.

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Posted on Bert de Roo in Main Menu