How To Manage Loyalty Program In ERPNext

In this competitive era, when any customer continues to buy goods from one company only, they can appreciate them by providing good discounts and encouraging them to continue buying from the company- to do so, they can use “Loyalty programs”. A loyalty program allows customers to earn loyalty points on the basis of their purchases and they can redeem those loyalty points when they make their next purchase from the company, which allows them to get the discounted amount based on their redeem points.

Inputs of the Loyalty Program:

 Loyalty program names can be defined in the column of loyalty program name column.

 Loyalty program type: single tier program or multiple tier program, single tier program means can only have one collection rule in the collection tier, while in multiple tier program, multiple collection rules for the collection tier can be added.

 From date and To date: The start date and end date of the loyalty program can be added.

 Customer group and customer territory: A particular customer group or customer territory can be added to the loyalty program, as a default it will apply to all the groups and territories.

 Auto opt-in: to auto-opt for all customers we can enable this checkbox, other than that we can assign the loyalty program to a particular customer.

 Collection tier: in the collection tier we can define multiple collection rules that include tier name, collection factor for 1 loyalty point(how much spent=1 loyalty point) and minimum total spent (minimum amount spent to qualify the tier).

 Conversion factor: we can define a conversion factor for the loyalty points (1 loyalty point= how much of base currency).

 Expiry duration (in days): The loyalty points will expire after the defined days of expiry.

In ERPNext, we can manage Loyalty Programs. Let’s see how we can create the loyalty programs that:

1. Configuration of the loyalty program in ERPNext

Navigate to stock > point of sale > loyalty program.

2. Define a Loyalty Program for the Customer:

Navigate to selling > selling > customers.

In the customers, under the accounting section, we can define loyalty program under the loyalty points.

On the customer form's dashboard, you can view earned loyalty points.

3. How a Loyalty Program can be Applied:

● Create a loyalty program as discussed above.

● Assign that loyalty program to the customer.

● Create a sales invoice for that customer, and the customer will collect the loyalty points based on the rules defined in the loyalty program.

Example.

Let’s suppose that we have a loyalty program that defines the rule that for level 1, the minimum spent is 100 and the collection factor is 1 loyalty point and for the minimum spent of 200 and collection factor is 2 loyalty points.

We create a sales invoice for rs 250 and the related 125 lp will be collected the next time when we invoice the customer, we may click on the checkbox to redeem points, and the outstanding amount for the invoice will be changed by deducting the redeemed points.

This is how loyalty points work.

4. How can we Redeem the Loyalty Points:

Loyalty points can be redeemed on the next purchase of the customer. From the sale order when we create a sales invoice under the “payment” section, we can select “loyalty point redemption” where we can check the option if we want to redeem it.

In that, we can mention the loyalty points to redeem and based on the loyalty program configured the amount will be auto-shown.

The outstanding amount will be shown on the invoice based on the actual amount invoiced and loyalty point redemption. This is how we can redeem the loyalty points.

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Conclusion

To conclude, configuring and managing a loyalty program within ERPNext can greatly benefit the customer engagement and retention for your business. By utilizing the powerful features of ERPNext, your business can efficiently track customer interactions, reward loyalty and analyze program effectiveness.

By adopting the loyalty program features in ERPNext, you can stay ahead in the competitive market landscape.