The Loyalty system aims to increase sales for a merchant by rewarding his frequent customers for purchases they perform at his stores, it also improves customer retention and acquisition if the presented services differentiated from competitors. The rewards could be offered by the same merchant or via other merchants who are in agreement with the subject merchant in the form of discount or free gift/coupons or in some cases Cash Back.
Loyalty is an application hosted on secured Microprocessor Smart Card and have its own security access and keys defined by the issuer upon personalizing the card. Mapping between spent cash and rewarding points is defined by the merchant and stored on the card, typically adding points requires no user authentication to the card however, security aspects are required to avoid unauthorized access. Upon performing a ‘Redemption’, user authentication would be required. Redemption can be granted upon reaching a preset points limit or at any stage. The system can optionally add an expiration date for redemption according to the last collected points.
A cardholder can check on his current balance using any device equipped with Smart Card reader; Laptop – Kiosk machine – Mobile app – Handheld terminal…etc.
The system includes the below features:
Loyalty programs are potential tools to determine customer spending habits and as such, trends according to which the merchant can decide on creating innovative sale promotions based on a predefined customer segmentation, events, or in general.