Loyalty Change from per visit to amount spent: best way to convert current customers stars

[sseidl]

We've had a loyalty program for years in which customers earn a star each visit.  We would like to change to a program that gives a star per dollar spent.  

How can we handle the conversion of current customers stars to our new system?  It will require more stars to earn a reward under the new system and we want to avoid any complaints from current customers that have stars under the old system.

Thanks.

[HC_Charlie · Accepted solution]

@sseidlI think as long as you truthfully communicate these changes, most customers will understand. To make the change a bit more agreeable to long time customers, you could extend an offer to them before the change takes affect. Some ideas...

• Offer to redeem any current stars for a special discount or free item before the change takes place.
• Allow them to keep their current number of stars (which should automatically happen; if you make a change in earning rewards, it shouldn't affect current customer's number of stars), and just have them earn stars at the new rate. This will give them a head start in new rewards.
• You can create a sort of "happy hour" timeframe in your loyalty program, where you create certain days/times where customers can earn bonus stars. In a time of transition (maybe the first month or so of the new program), you could have several happy hour or long term customer events, where you advertise to them that any purchases made at those events would earn double stars or something like that. This might ease them into the new program.

Hope some of these might give you ideas to help your customers adjust to changes in the program. Remember, give your current customers enough time in announcing the change, and hopefully they'll be understanding.

[Stacelyn24]

1. Plan the Conversion Ratio

• Calculate the Conversion Ratio: Determine how many dollars spent will equate to earning one star in your new system. For example, if previously customers earned one star per visit and you want to transition to one star per $10 spent, calculate the equivalent based on your average transaction size.

2. Communicate Clearly with Customers

• Announce the Change: Notify your customers about the upcoming change well in advance. Use multiple channels such as email, social media, signage in-store, and your website to ensure everyone is informed.
• Explain the Benefits: Highlight the benefits of the new system, such as earning stars faster based on their spending, which can lead to rewards sooner.

3. Convert Existing Stars

• Calculate Existing Stars: Determine how many stars each customer has accumulated under the current system.
• Convert to Dollars Spent: Convert these stars into an equivalent value of dollars spent in your new system. For example, if a reward required 10 stars under the old system and now requires 100 points (equivalent to $100 spent), ensure customers retain the value of their earned stars.

4. Implement the New System

• Start Fresh: Begin tracking new purchases under the dollars-spent system once the conversion date arrives. Ensure your POS system is updated to reflect the new earning rules.

5. Address Customer Concerns

• Customer Support: Prepare your customer support team to handle inquiries and concerns from customers. Provide them with scripts and FAQs to explain the transition and reassure customers.
• Feedback Mechanism: Encourage customers to provide feedback on the new system. This can help you address any issues and make adjustments if necessary.

Example Conversion Process:

• Old System: Customers earn 1 star per visit.
• New System: Customers earn 1 star per $10 spent.
• Conversion Ratio: If a customer had 10 stars (equivalent to 10 visits), they would retain the value of those stars, which might convert to an equivalent of $100 spent under the new system (assuming 1 star = $10 spent).

[sseidl]

@Stacelyn24 How do we convert existing stars?  We have too many rewards customers to do it manually.