Loyalty Program
Overview
Loyalty Program – Business Overview
The Loyalty Program is used to design and manage customer reward schemes that encourage repeat purchases and long-term customer relationships. It allows businesses to define how customers earn rewards based on their transactions and how those rewards can be redeemed, helping increase customer retention and overall sales value.
Purpose in Business Operations
The Loyalty Program supports marketing and sales strategies by:
- Rewarding customers for repeat purchases
- Increasing customer lifetime value
- Encouraging higher spending and brand loyalty
- Creating structured, transparent reward rules
It acts as the central reference for all loyalty-related activities across sales, invoicing, and customer engagement.
Prerequisites and Setup Requirements
Before using the Loyalty Program, the business should ensure:
- Customer records are properly maintained and active
- Products or services are clearly defined for sales transactions
- Pricing and billing processes are already in place
- Management has defined clear loyalty objectives (e.g., points per purchase, redemption value)
These prerequisites ensure that loyalty points are calculated accurately and applied consistently.
Typical Workflow and Business Process Fit
Create a Loyalty Program
The business defines the reward structure, such as how points are earned and how they can be redeemed.Link Customers to the Loyalty Program
Eligible customers are enrolled automatically or manually as part of sales or marketing activities.Earn Points Through Transactions
When customers make purchases, loyalty points are accumulated based on the program rules.Redeem Points
Customers use accumulated points for discounts, free items, or special offers during future purchases.Monitor and Adjust
Management reviews performance and adjusts rules to align with sales goals and customer behavior.
The Loyalty Program integrates naturally into everyday sales and billing activities without disrupting normal operations.
Key Business Scenarios Where It Is Essential
- Retail businesses encouraging repeat in-store or online purchases
- Service providers offering rewards for recurring clients
- Companies running promotional campaigns tied to customer spending
- Businesses aiming to differentiate themselves through customer experience
In all these scenarios, the Loyalty Program helps convert occasional buyers into loyal customers.
Important Considerations for Users
- Ensure reward rules are simple and easy for customers to understand
- Regularly review point values to maintain profitability
- Clearly communicate redemption conditions and expiry rules
- Monitor customer behavior to prevent misuse or excessive discounts
- Align loyalty benefits with overall business strategy and margins
When managed thoughtfully, the Loyalty Program becomes a powerful tool for building trust, increasing engagement, and driving sustainable growth.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loyaltyprogramname | Loyalty Program Name | Data | ✓ | - | Unique name identifying the loyalty program in Dafater |
| loyaltyprogramtype | Loyalty Program Type | Select | Single Tier Program, Multiple Tier Program | Defines program structure as single-tier or multi-tier | |
| from_date | From Date | Date | ✓ | - | Start date from which the loyalty program becomes active |
| to_date | To Date | Date | - | End date after which the loyalty program is no longer active | |
| customer_group | Customer Group | Link | Customer Group | Customer group eligible to participate in this loyalty program | |
| customer_territory | Customer Territory | Link | Territory | Customer territory eligible for enrollment in the loyalty program | |
| autooptin | Auto Opt In (For all customers) | Check | - | Automatically enroll all customers into this loyalty program | |
| collection_rules | Collection Rules | Table | ✓ | Loyalty Program Collection | Rules defining how loyalty points are earned from transactions |
| conversion_factor | Conversion Factor | Float | - | Defines value conversion rate between loyalty points and rewards | |
| expiry_duration | Expiry Duration (in days) | Int | - | Number of days after which earned loyalty points expire | |
| expense_account | Expense Account | Link | Account | Account used to record loyalty program related expenses | |
| company | Company | Link | Company | Company under which the loyalty program is configured | |
| cost_center | Cost Center | Link | Cost Center | Cost center assigned for tracking loyalty program expenses | |
| loyaltyprogramhelp | Loyalty Program Help | HTML | - | Informational content providing guidance about the loyalty program |
Child Tables
Collection Rules (Loyalty Program Collection)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| tier_name | Tier Name | Data | ✓ | - | Name identifying the customer loyalty tier. |
| min_spent | Minimum Total Spent | Currency | - | Minimum total spend required to qualify for this tier. | |
| collection_factor | Collection Factor (=1 LP) | Currency | ✓ | - | Spend amount required to earn one loyalty point. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Customer | Linked from | Selling |
| Loyalty Point Entry | Linked from | Accounts |
| POS Invoice | Linked from | Accounts |
| POS Profile | Linked from | Accounts |
| Sales Invoice | Linked from | Accounts |
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |
| Customer Group | Links to | Setup |
| Territory | Links to | Setup |