Frequent Buyer Plans: Overview

This article deals with the RICS Enterprise Frequent Buyer Plans and gives a general overview of the Frequent Buyer program.

RICS Enterprise offers highly-configurable Frequent Buyer Plans, which allow stores to reward customer loyalty by offering discounts to customers who have purchased multiple products from the store.

The intent of the Frequent Buyer programs is to encourage repeat business by offering an incentive for the customer to spend more money at the store. A secondary benefit is that it encourages the customer to provide customer information (name, address, and so forth).

The RICS Frequent Buyer feature is based around the idea that as customers purchase items from the store, they accumulate dollars or item quantities (one for each dollar spent or qualifying item purchased). When the customer reaches the configured breakpoint, he will earn a reward (the value of which is determined based on plan configurations). Once the breakpoint is met, the customer’s accumulations then reset for a new iteration of the plan (called a graduation). Any amount by which the customer’s accumulations exceed the breakpoint will be carried over to the next iteration of the plan.


Types of plans

There are five different calculation methods used to determine how the Frequent Buyer Plan operates.

Method 1 (Buy Qty, Get $$$ based on avg. purchase price)

This method is the most complex. Customers buy a given quantity of accumulating items. Then they receive a dollar-based reward, which is a percentage of the average purchase price of the items the customer purchased up to the point that the reward was claimed. (Often advertised as “Buy 5 pairs of shoes, get 50% off the sixth pair.” (This is a gross oversimplification, and does not accurately reflect the way the plan works!))

Method 2 (Buy $$$, Get $$$)

This method is the simplest. Customers purchase a given dollar value of products, and are given a dollar-based reward. (For example, Buy $250, get $25.)

Method 3 (Flat % discount)

This is not actually a Frequent Buyer Plan, because there is no accumulation needed to grant a reward. Instead, a customer on this plan will get the designated percent off each qualifying purchase. This is often used for things like employee discounts or discounts for public servants. (For example, Get 10% off everything.)

Method 4 (Buy Qty, Get % discount)

This method is fairly simple. The customer buys a given quantity of qualifying items, and gets a percent-off reward. (For example, Buy 5 shoes, get 50% off the sixth pair.)

Method 5 (Buy $$$, Get % discount)

This method is very similar to Method 4, but with a dollar-based breakpoint. Customers buy a given dollar value of qualifying items, and get a percent discount. (For example, Buy $250, get 20% off your next purchase.)

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