Exploring Customer Loyalty and Referral Programs

All right, so welcome to the webinar today. I'm excited to talk about customer referral and loyalty programs because this is something that industry-wide we are seeing more and more companies start looking for these types of programs to supplement their traditional MLM, direct sales, however you want to call it, right, to supplement the core business. So customer referral... referral and loyalty programs are helping to kind of bridge that gap between our industry and the straight retailers out there. So you're going to see a lot of similarities between the programs that are offered here and what you may see from those retailers out there in the traditional space. So jumping in. Lost my mouse. There it is. We're going to start with the loyalty programs first. And when I say loyalty programs, this could be a customer loyalty or a VIP program. Some people call them memberships. There's lots of different verbiage around it. But in essence, a loyalty program is something that you're going to offer to your existing customers. You may gain some new customers as a result, but the real intention of a loyalty program. is to encourage your best customers to come back more often, purchase more when they are with you. And so the repeat sales and upselling, that's really what you're looking at with loyalty and VIP programs. So at By Design, the way that we handle loyalty programs, so those VIP programs that are going to help reward your best customers. The way that we do that is at its core, you need to identify these individuals using a separate customer type. You can use a rep type if you'd like. We have clients that do it both ways. But regardless of whether you're creating a separate customer type or a separate rep type, the overall steps to complete this and the overall functionality is going to be similar. But. You have to take your entire customer base and identify which of those customers you want to set up as VIPs or members or whatever you call them. And there's a couple of different ways to do this. The first one is if you are not already leveraging auto ships for traditional subscription services, you can leverage the auto ship profile as a blanket way. of setting the customer type to VIP. And what that means is essentially any customer who has an auto ship profile would be marked as a VIP customer or a loyalty customer. Okay. That's the simplest way to do that. Obviously, if you have additional auto ship offerings, if you have monthly subscription boxes or biannual deals, then this is not going to be a good option for you. But if you don't... offer those other items, or if you want to leverage your auto ship as a way of becoming a VIP, there's a simple freedom setting that is a yes or no. And then once it is set, anybody that has an auto ship profile on file will automatically be flagged and changed to a VIP customer type. At the point that that profile gets canceled, they will automatically fall out of that. back into a traditional retail customer offering. So that's one option, using the auto ship profile as the mechanism for declaring them as a VIP or not. If that's not a good option for you, maybe you're already using auto ship. Another way to do it is through what we call collections. So you can have rep collections and customer collections. And essentially, this is going to allow you to manually dictate. a group of reps or customers that would belong in a collection. So you could have a VIP collection and you can manually upload Excel spreadsheets for those that should be considered VIP. You can go in and manually add them one at a time. There's also ways to add customers to a collection based on inventory purchase, promotion actions, etc. But the collections are a way if you're not able to use the auto ship, you can use the collection to dictate the specific customer type for VIP. I mentioned it already, but there is an inventory attribute that you can set up. Basically, what this would be is you have a particular inventory item. So it might be a VIP membership. It might be an annual membership, a monthly membership, a lifetime membership. But essentially, you would set up a product or products, it can be more than one, that if they are purchased, the customer is then put into a customer type of vip based on purchasing that inventory item there is one caveat here if you're going to leverage an inventory item to set a customer status you will need to update your comp plan to acknowledge and process those uh customer types based on the inventory so that's why on this slide instead of the typical uh self-service or support it has both. Because in this example, if you're going to use the inventory attribute, you will need to work with our team to make sure your comp plan recognizes that. So that's where the support service is needed. Otherwise, the other options here are all self-service, meaning you can do them on your own. Finally, as I stated, there is another way of setting the customer type to VIP, and that is through promotions. So this can be done in a couple of different ways. It can be... You know, they have to put a particular item on their order and then that promotion will make them a VIP. It might be if they spend a certain amount of money, they're made a VIP. It could be any number of reasons or any number of conditions that can be met on a particular order that then results in them being made a VIP customer. But these are all the different ways of... setting a customer as a VIP. And that's the first step to launching this kind of program is you have to identify which of your customers are going to be in the loyalty program. So then once you've got the customers identified, whether, you know, regardless of how you've done it, you've got a set of VIP customers that are different from your retail customers. This allows you to then leverage different tools. to work with those VIP customers. The first is going to be price rows. On our inventory management, there is the ability to set up different price rows. So out of the box, you're typically going to have two different prices, one for your reps or your wholesale pricing, one for your customers or retail pricing. You can add a third price type, which is VIP customer pricing. That means that once a customer is set up... as a VIP customer, then when they go into the cart, they're going to automatically see the discounted pricing that you've set up for VIP customers. That way you don't have to wait until the end at checkout to show them those savings. We already know that they're a VIP customer when they come into the cart because you've got them set up as such. So knowing that they are a VIP customer allows us to display the particular pricing that you have. for your VIP or loyalty customers. Now, you can also use price rows to offer exclusive items to your VIPs. This would be done by having a price row for VIP customer, but not having a price row for retail customers. This is an easy way to make items appear in the cart for your VIP customers only. And all this is done at the inventory level on each SKU when you're setting up the various. price rows. That's how you can control item availability and item pricing for your VIPs versus your retail. Oh, my image disappeared. You also have promotions that you can leverage for your customer types. So you have conditions in the promo engine that basically look and say, is this customer a VIP customer? If they are, you can have promotions that are offered to them that are not offered to your regular retail customers. A great example is free shipping. Maybe you offer your VIPs free shipping on all of their orders or any order above $50 or above $100, but you don't necessarily want to offer that to all of your customers because you want a reason for them to join the VIP membership. Okay, so that's one example, but the condition that you're going to look for is... customer type. And when you have that condition of customer type set up, you can then use any action that you want, whether it be free shipping, discounted products, changing the pricing to your VIP pricing. You can have BOGOs that are set up for your VIPs only. There are all these different actions that are used in conjunction with the condition of being a VIP customer. The upgrade flow. This is a really nuanced way of leveraging the different customer and rep types that a lot of people don't think of. The discounts and the promotions are a little bit more obvious, but you can also use different configuration in the ByDesign platform to say, based on who the person is, are they a retail customer? Are they a VIP? Are they an affiliate? Based on who they are, what are they... What are they eligible to purchase? What are they eligible to sell? What are they eligible to enroll as? And what are they able to sponsor? Okay, so basically what you can do is you can say, as an affiliate rep type, I'm only allowed to recruit other affiliates. And if I recruit a team builder, my sponsor becomes the sponsor of that individual. That's all done. using your rep types and customer types in the Freedom configuration. So basically what you're doing is you're creating a journey, okay? And it starts at the retail customer, it lands at the team builder or traditional representative, but you can have as many steps in between there as you want. And you can help guide your customers to the next logical step. Okay, so this is how you can kind of help them to progress from customer all the way to team builder. And that's done through configuration settings to help them take the right next step and to limit them from doing things that you don't want them to do. The biggest example is that affiliate versus team builder. If those are two different rep types, you can control what an affiliate is able to sell, what an affiliate is able to recruit versus that team builder. And then finally, you also have the ability to set up separate communications. This is using our autoresponder tools, which are automated communications that's available to all of our customers or our clients, rather. These communications can be sent based on rep or customer type. So that means that when a retail customer places an order, they can get a very different. order confirmation email than your VIP customer does. In the same way, your affiliate can get different communication throughout the month that your team builder does. So you can really communicate to them in a way that makes sense to them. You can promote the items, promote the activities that you want them to do by leveraging the separate communications. And it's all driven by the customer and rep types. Okay. When it comes to the customer, there are tools that are available for them with these loyalty and VIP programs. So again, because I am set up as a VIP customer in the system, when I go to my account in the cart, it's going to show me items that are only available for the VIP customers. Retail customers aren't going to necessarily see all of this. So the biggest one is having a credit ledger. So that as a loyalty customer, as a VIP, I can always come in and see what credits do I have available. Are those credits about to expire? Where have my credits come from? There's a lot of configuration options in here. Everything from not showing them their credits at all, which I don't recommend, to maybe you only want to show them, here's your credits that are already available. You might also want to show them, here's your credits available and the credits you've already used. You can go so far as to say, where did the credits come from? Who did I refer to get those? What did I purchase to get those credits? So there's a wide range and a spectrum, if you will, as far as what tools you want to show your customers. The key is to balance the tools with your program. Give them enough information so that they take the next step. You want them to redeem those credits, so be sure to show them when they have those credits available. If you want them to be able to see referred customers that they haven't gotten credits for, maybe that's something that you want to promote. Okay, the key is what do you want your customers spending their time doing? And then show them the relevant tools in their My Account area to trigger that action and promote those next steps. One thing I do like to call out, and if any of our clients on the call do not already have this set up, there is a setting that allows you to put an easy upgrade button into the My Account area of the cart. So as a customer, every time I visit my account, I see that I have that option to upgrade to an affiliate or upgrade to a brand partner. As a retail customer, maybe there's an option to upgrade. to a VIP. So I encourage you, if you're not leveraging this quick upgrade button in the My Account section, you should consider turning that on. It's going to help every customer to have that visibility as to what is possible, what can they become, how can they further engage with your brand, with your products. So it's a simple setting. to be able to turn on that. And basically, you control the URL that it goes to. So as they're upgrading to a representative, you can have it linked to your enrollment site. As they're upgrading to a VIP, you can have it linked to the cart with the VIP item already in there. So you can really play around with the URL setting there to make sure you're taking them where you want them to go in order to upgrade to that next step. in the path of progression that you've set up. And then not leaving out our reps, there's rep tools that are going to play an important part for the loyalty and the VIP programs as well. The primary one is going to be customer groups. You can set up customer groups in your Freedom Back office that allow your reps to come in. and view by customer types. So as a rep, I'm going to come into my back office and I'm going to be able to very clearly see which customers in my organization are VIP customers and which ones are retail customers. This is going to be really important because I'm going to communicate to the two of them in different ways. Okay, so the contact groups by default have communication tools built in with them. So when you set up a customer group for your VIP customers, every rep can come in and with the click of a button, send a message to all of their VIP customers at once. This is going to help them to further promote VIP programs. If they want to offer something outside of what the corporate office is offering, they can do that. But basically, it's for the communication. Oh, did somebody have a question? Or are we just... accidentally not muted. Okay, I'm going to assume it was supposed to be muted. So the customer groups are a really great way of empowering your field to be able to effectively communicate to these two key groups of their customers. Just so you know, the same is also possible for reps as well. So as a leader, I want to know who in my downline is an affiliate. who in my downline is a true representative and team builder, you can set up groups for that as well. But for today's purposes, it's really focusing on those customer programs. So be sure as you're launching these programs that you're setting up the tools for your reps to be able to leverage, not just the tools at the corporate level. In addition to the customer groups, there are also additional columns that can be turned on. for the customer manager report. So as a reminder, the customer manager report is the key tool that's going to allow your reps to view and work with their entire customer listing. By adding a couple of key columns to that report, they can quickly find who in their customer listing, which one of their customers have credits available. Are those credits about to expire? It's going to allow them to... follow up with those customers and remind them to use those credits that they have available. So again, one more way of empowering your reps to reach out and maximize the corporately offered programs of these reward points and the loyalty program. There are some documentation KB articles that you can leverage to learn more about customer loyalty and VIP programs. Once you go to this initial page, you'll see that there are additional links embedded that take you into more detailed KB articles. So start with the high level one about loyalty programs. From there, you can dig into how do I, you know, really offer auto ship as part of loyalty? How do I offer consecutive ordering as part of loyalty? So there's individual articles. for the details within that, but start at the high level and it's going to do a great job of not only telling you what's possible, but helping you to actually set them up as well. All right, I'm going to pause for just a moment to check out the chat, see if there's any questions that we need to answer before we move on. I don't see any here. All right, so with that, I will move on to the second type of customer program. So the first one I covered was loyalty, trying to increase the sales of your customers. Now we're going to talk referral programs. And the problem primary focus for a referral program is to acquire new customers, right? You want to encourage your existing customers to share your brand and share your products with new individuals. That's the crux of a referral program. Obviously, there are additional benefits. For example, if you're rewarding your existing customers for referring others, yes, you are getting new customers, but that a referring customer who was already a customer of yours is going to get some credits, get some kind of perk that they can come back and spend with you as well. So you should see an increase in your existing customer sales as well by rewarding them for these referrals as well. But primary objective here is new customers. So when it comes to referral programs, how do you capture a referral? Well, there's a couple of different ways. The first is that the new customer can self-identify when they're creating an account. So when I come in as a new customer, if Dan is the one who has referred me to your cart, I can put his customer number in there. So that way, you know Dan's the one that told me about your brand. So you can allow each new customer to self-identify and let you know who referred them. You can also be proactive and empower your existing customers to share their cart. Now, when an existing customer shares the cart, the link that the new customer gets already has the referral with it. So this is a much more sure way. of ensuring that you're getting those referrals. You know, when you're relying on the referred customer to self-identify, you're not going to always get it, okay? By having the referral tools available for your existing customers, it's a much more sure way of capturing that referral. And it also makes it very easy for your customers to refer others. You can literally put a link directly at the top of the cart. It'll be... there on every page. So no matter if I'm looking at products, checking out, checking my account, this is in the header. So it's always there. Always easy for me to click and share that link either by email, on social media, by text. There's all different ways of sharing it. But that's going to be the primary, the most easy way to get those referrals is to turn on the referral link. in the cart so that every existing customer can, with a click of a button, share their cart out to other customers and bring new people to your brand. So that's how you're going to capture the referrals. But once they're captured, how are you going to reward them? This is going to be done using the promotions engine. Okay. So you're going to leverage promotion conditions. that look at customer referrals. And there's a couple of different ways you can do this. One way is you can reward your customers based on the number of referrals that they bring in. So you can say you get one credit for every referred customer, or you can say you get 20 credits for five referred customers. All of this is possible through that promo engine. So you can see the condition type there is gonna be the customer referred count. And then you simply, the first field there is the minimum referred customer. Do you want to reward them for every single, or do you want to say in increments of three, in increments of five, in increments of 10? This also allows you to set up tiers so that yes, you get one credit for every customer, but at your fifth customer, you get an additional 10 credits. At your 10th customer, you get an additional 50 credits. So you can actually put together a stacking program so that the more your customers refer, the more rewards they get, okay? And it's all done through promotion configuration using the customer referred count. In addition to the count of customers, you can also reward your existing customers when referred customers actually place the order. So if you don't want to simply reward them for sharing the link, but you say, okay, you will get your reward when your new referred customers actually place an order. You can do that using a promo action. So you're going to use the same condition of looking for a refer, sorry, not the same condition. It's not the count anymore. Now it's just going to be a referred customer is the condition. And then the action is going to be based on the order of that new customer. You can say, I want to give them a flat amount. So you get $10 in free credit for every new order that a referred customer places, or you can do it as a percentage and say they get 10%. of that new customer's order in credits. So there's a few different ways you can set this up. But again, you're going to look at the condition of are they a referred customer? And then the action is going to award the original customer, either with a percentage or a flat amount. You do also one small caveat I also want to point out here. You can indicate at what point the credits are awarded. You can say as soon as the order is submitted and posted, that's when the referring customer gets their credits. You can also say wait until the order shipped. It's up to you in the business rules that you want to do, but there's a lot of different options. You can see there in that second screenshot, when you're awarding credits, there's a lot of different configurations there that you can leverage to really make the promotion work for your referral program. Customer tools for referral programs are going to be very similar to the loyalty ones that we covered with that credit ledger. But with a referral program, oftentimes you're going to also want to show them who are the customers that I have already referred. This is going to help them to know who they've gotten credit for, who they haven't gotten credit for, and also who they've already referred so that they're not referring the same customers over and over again. but looking for new customers to refer to to bring even more audience members to your brand. And then, of course, so that they can earn some additional credits as well. And then on the rep side, going back to that customer manager report, in addition to adding those columns for credits available, you can also add columns to show me how many referred customers each customer has. So if I'm looking at my customer manager report, I can easily see that Dan has referred three additional customers to me or four or five. So this is going to help me as a rep to identify who are my customers who are taking advantage of this program. That might indicate that it's time to talk to them about becoming an affiliate. OK, so it can be a really great green flag for your existing reps. to look at their customers who are referring a lot of people to the business, see if maybe they're interested in that next step. And that goes back to that path of progression that I talked about, helping customers to take the steps from customer to a business builder. That's not the only use case. It may be that Dan has no desire to become an affiliate. He wants to remain a customer, but he loves these referral credits. If that's the case, maybe I just work with Dan on, you know, helping him with messaging, helping him to understand the latest and greatest promotions available. There are ways that I can work with these customers and know who are the ones who are taking advantage of the programs, but also maybe who isn't. If Dan is a stellar customer, purchases multiple times a month and is not getting any referrals, maybe I need to talk to him about that. so that he can earn credits to help cover those purchases that he's making on a regular basis. The key is to empower your reps, make sure they have tools to be able to identify who the customers are that are participating in the various customer programs that you have set up. There's also reporting tools that you have available so that you can, when I'm viewing a customer, I can see who they were referred by. So those are some reporting configurations that you can set up. And then finally, there are also some auto responders that you're going to want to take advantage of here. When you are sending out automated communications to your customers, letting them know that they've got credits about to expire, you can also send those to the rep. So I can send an email to Rich, my rep, and say, Rich, did you know your customer Dan has credits about to expire? The key is to communicate to the customer. Dan, you've got credits that are about to expire. Don't miss out. Communicate to the rep. Hey, Rich, Dan's about to lose his credits. Make sure that you're connecting with him so that he doesn't miss out on the opportunity here. So making sure that you're communicating to everybody involved. And the beauty is it's all automated. Okay. When you set up the templates, it's going to automatically go out based on credits and based on customer associations. You don't have to manually do this weekly or monthly. It's something that the system's going to do for you as customers become eligible based on the expiration date of their customers. And again, there are some great articles out there for customer referral programs. I've put the high-level ones in here, but you'll see, again, each one is embedded with additional links so that you can view additional details. But this is going to help you understand how to set up a referral program, give you details on the specific settings that you'll need to turn on, and best practices, along with actual examples in these articles so that you can go in, self-service. Of course, if you have any trouble, you can reach out to our support team. But the idea is we want to empower you to be able to do this on your own. All right. That concludes the how-to portion. Now I'm going to jump. into some real life use cases, examples of current clients that are leveraging the tools I just spoke about to actually offer real programs out there for their customers. Real quick, again, going to do a quick check of the chat. Looks like no questions yet, so we will keep on trucking. The first example that I'm going to talk, oh, that just went through. Two slides. There we go. The first example that I'm going to look at is one of our clients, Bravenly Global. They are a couple of years old, a very new and growing client. You may have seen them mentioned in some of the industry publications. They've been featured in DSA articles. The CEO, Aspen, has been a guest speaker at different DSU events. So it's likely that you've heard the name before, but they have a really great VIP program. They also offer affiliate and team builders. So you can see here, there are three different ways to engage. You can become a VIP customer, you can become an affiliate, or you can become a brand partner. Affiliate and brand partner are technically rep types in the back side. The VIP customer, however, is a customer type. So they do have two customer types of retail and VIP, two rep types of affiliate and brand partner. So when launching their VIP customer program specifically, they wanted to increase repeat purchases and increase the dollar amount that these VIP customers were placing. Okay, so they did this by offering them discounts, product rewards, and referral credits. So with their VIP program, obviously the first step was to establish their customers as either retail customers or VIPs. The way that they are doing it is using that inventory attribute. So they have a particular VIP item that can be purchased through the cart. And when that is purchased, they are automatically set as a VIP customer behind the scenes. So that inventory attribute. plus their comp plan is helping them to set up a customer type of VIP. Once they have that VIP customer established, then they are using price rows and promotions in order to offer the discounted pricing. You can see here they've got their different pricing set up. So you can see that the VIP customer has lower pricing than the retail customer. It also affects the volume differently. So that's another thing I want everybody to be very aware of. When you're offering discounted pricing using various price rows, you can adjust the volume that your reps are getting at the same time. That way you're not simply decreasing your margin on products. you are also impacting the volume that the reps are getting so that your margins are protected. So the price rows are a great way of doing that, but they're also using promotions. And this is important because the price rows only work if we know that you are a VIP. So your very first time of adding the VIP item to your cart, we want to make sure you get the VIP pricing then as well. Every subsequent order, we already know that you're a VIP, so the price rows take care of it. But on that first order, when you add the VIP item to your cart, they wanted you to get the VIP pricing on that initial order as well. So the way that they do that is through the promotion. There's a promotion condition that looks for that VIP SKU. So does Dan have the VIP upgrade item on this cart? If yes... then I'm going to use the action of price type change. So if he's got this item on his order, then I'm going to change the price typing on this order from retail to VIP. And then every subsequent order is handled by the actual customer type. But this was a way to make sure that they didn't have to wait to get their discounts on future orders, that they get it on the initial order as well. And again, it's just a promotion condition and action. that allows them to offer that discount on the very first order. If it's not a discount, if it's free shipping, you would use the same condition, but use a different action so that instead of using the price type change, you're going to affect the shipping on that order. Okay, so you can use any action you want, but the promotion tool is how you're going to ensure they get those rewards from the very beginning. And again, it's all configuration in your Freedom Back office. Finally, the final perk that they have for their VIP program, in addition to the discounts, is that they offer 10% back in product credits. What this means is as a VIP customer, every single dollar that I spend, I'm going to get 10% back in product credit. I always like to say this is a lot like that Kohl's cash or any kind of bounce back that is offered. The idea is we want you to at... every purchase have a reason to come back and purchase again. And giving product credit back to them is a way of doing that. This is going to be done in using a combination of our credit system and promotions. The credit system is a system that is available to all of our clients and allows you to issue credits to either customers or reps or both. So you can see in my screenshot here, you can have multiple credit accounts set up, and that allows you to award credits to different individuals and in different ways. But on the customer side, they're only going to see the credits that apply to them, and they're going to see them in their cart so that they can go and redeem them. But once you have the credit accounts set up and ready, you're going to use the promo action of award credit. This is basically going to allow you to say, again, the condition is that they are a VIP customer. The action is that on each order, they get a product credit awarded, and you can do it as either a flat amount or as a percentage of whatever they purchased. Again, lots of configuration options there. You can set expiration dates on these. You can round up or down. You can determine if... partial credit should be awarded or not. All of that is done when you're setting up the action of award credits through the promotion engine. But through the combination of promotions, credits, and inventory attributes, Ravenly is able to offer a VIP program so that anybody who joins as a VIP customer gets all of the benefits that would encourage them to come back. and engage with the brand and purchase more frequently and add a higher amount. All right, the next case study or example that I'm going to go through is for one of our clients, Pure Haven. So Pure Haven is a little bit different in what they're offering, but you're going to see a lot of similarities in the configuration. The program objectives that Pure Haven had is... We want repeat purchases from our existing customers. We want to drive the size of order up specifically to the $100 threshold. We also want new customers and we want to encourage auto ship participation. Okay, so you can see they're really wrapping a lot of objectives into this rewards program. And you can see the way that they talk about their program is going back to that path of progression from customer to consultant. Right there on the rewards page, it leads with choosing how you want to engage with us. Do you want to engage as a customer, as a member, through the subscribe and save? or as a consultant. So they're establishing that entire path from day one. Specifically, when it comes to the referral rewards. So this is the piece of that path of progression that's going to reward customers for referring others. When you're setting up referral rewards, we already talked about the settings that you need to allow your customers to share their cart and see their credits. There's also some freedom settings that you're going to want to turn on that empower you to reward those referred and referring customers. So there's a few freedom settings you're going to want to turn on. But then once you've got those turned on, it all comes down to promotions. Again, the promo engine is the core foundation to these referral programs. So you can see a couple of examples there. Um, the condition that you're going to look for is going to be one of two, either the referred customer order, which is going to be a benefit that you offer to the customer who was referred by Dan, or you're going to use a referring customer order, which is going to reward Dan for doing the referring. So there's a couple of different conditions you can look at there depending on who you want to reward. And then the act. is either going to be a discount or free shipping for the new customer, or most of the time it is awarding credits to the referring customer. Doesn't have to be. You can actually issue gift certificates. You can give them a promo code. You can give them an exclusive product on their next order. There's a lot of different options, but in my experience, what I see most often is that you're rewarding your existing customers with credits. so that they come back and place another order with you. And the most common thing that you're rewarding your referred customer, the new customer, is with a discount or with free shipping. Basically, what you're setting up through these conditions and actions is empowering Dan, an existing customer, to share his link with any new customers and say each new customer gets 10% off their first order. Okay? And... And then Dan would get $10 in credit for every new order that is placed. That's a simple referral program that is possible through the promotion engine and would encourage Dan to share his cart with as many new people as possible. So that's the referral portion of this program. They also have some loyalty items built in. They call it member rewards. And the member rewards that they have is... similar to what you saw with Bravenly. They do offer a product credit. So every purchase that a member places, they get 10% back in product credits. So again, you're going to use the promotion condition of a member customer or VIP customer. And then the action is going to be award credit. You can do it as a flat amount or as a percentage. And then they do offer exclusive items to their members. So they're leveraging the price rows that I discussed earlier. where you can have a price row for your members or VIPs, but not for retail. This is going to allow those VIPs or members to purchase items that are not available to the retail customers. Those are the two primary rewards that they are using there. They do offer one-off product credits at anniversaries and so on. That's going to be done through the credit system. where they can go in and manually award credits or by bulk using a spreadsheet for anybody that has a birthday within the month or has an anniversary. It can be set up as a promotion when they renew their VIP membership. It can kick off that $10 credit. So there's lots of different ways to set these things up. And really the key is to come in with a strategy, understand what... kind of behavior you want to drive with your customers and then configure the tools in such a way to make that happen. All right, I just talked for a very long time. I'm going to pause here and ask, are there any questions that we want to answer on the call or in the chat? Let me take a look. Hey, I don't see any there. So if there aren't any questions, we can definitely end it here and I will send out the recording along with the slides. I thank you all so much for joining me. I love sharing what's possible through the ByDesign platform. If you've got specific questions, reach out to myself. You can do that via email, via LinkedIn. However you can get a hold of me, please do so. Also, feel free to... direct your questions to Dan or Jerry if you've been working with them. Also know that we have a great support team and you can email them at any time. It's support at bydesign.com. So if you've got additional questions, please reach out to us. We want to make sure that you know how to offer these programs and that you're maximizing every possible tool that's available to you through the ByDesign platform. So once again, thank you everybody for joining me. And I hope to see you again next month as we continue our webinar series. Thanks so much, guys.

So you're going to see a lot of similarities between the programs that are offered here and what you may see from those retailers out there in the traditional space. So jumping in. Lost my mouse. There it is.

We're going to start with the loyalty programs first. And when I say loyalty programs, this could be a customer loyalty or a VIP program. Some people call them memberships. There's lots of different verbiage around it.

But in essence, a loyalty program is something that you're going to offer to your existing customers. You may gain some new customers as a result, but the real intention of a loyalty program. is to encourage your best customers to come back more often, purchase more when they are with you. And so the repeat sales and upselling, that's really what you're looking at with loyalty and VIP programs. So at By Design, the way that we handle loyalty programs, so those VIP programs that are going to help reward your best customers.

The way that we do that is at its core, you need to identify these individuals using a separate customer type. You can use a rep type if you'd like. We have clients that do it both ways. But regardless of whether you're creating a separate customer type or a separate rep type, the overall steps to complete this and the overall functionality is going to be similar. But.

You have to take your entire customer base and identify which of those customers you want to set up as VIPs or members or whatever you call them. And there's a couple of different ways to do this. The first one is if you are not already leveraging auto ships for traditional subscription services, you can leverage the auto ship profile as a blanket way.

of setting the customer type to VIP. And what that means is essentially any customer who has an auto ship profile would be marked as a VIP customer or a loyalty customer. Okay. That's the simplest way to do that. Obviously, if you have additional auto ship offerings, if you have monthly subscription boxes or biannual deals, then this is not going to be a good option for you.

But if you don't... offer those other items, or if you want to leverage your auto ship as a way of becoming a VIP, there's a simple freedom setting that is a yes or no. And then once it is set, anybody that has an auto ship profile on file will automatically be flagged and changed to a VIP customer type.

At the point that that profile gets canceled, they will automatically fall out of that. back into a traditional retail customer offering. So that's one option, using the auto ship profile as the mechanism for declaring them as a VIP or not. If that's not a good option for you, maybe you're already using auto ship. Another way to do it is through what we call collections.

So you can have rep collections and customer collections. And essentially, this is going to allow you to manually dictate. a group of reps or customers that would belong in a collection.

So you could have a VIP collection and you can manually upload Excel spreadsheets for those that should be considered VIP. You can go in and manually add them one at a time. There's also ways to add customers to a collection based on inventory purchase, promotion actions, etc. But the collections are a way if you're not able to use the auto ship, you can use the collection to dictate the specific customer type for VIP.

I mentioned it already, but there is an inventory attribute that you can set up. Basically, what this would be is you have a particular inventory item. So it might be a VIP membership. It might be an annual membership, a monthly membership, a lifetime membership. But essentially, you would set up a product or products, it can be more than one, that if they are purchased, the customer is then put into a customer type of vip based on purchasing that inventory item there is one caveat here if you're going to leverage an inventory item to set a customer status you will need to update your comp plan to acknowledge and process those uh customer types based on the inventory so that's why on this slide instead of the typical uh self-service or support it has both.

Because in this example, if you're going to use the inventory attribute, you will need to work with our team to make sure your comp plan recognizes that. So that's where the support service is needed. Otherwise, the other options here are all self-service, meaning you can do them on your own.

Finally, as I stated, there is another way of setting the customer type to VIP, and that is through promotions. So this can be done in a couple of different ways. It can be...

You know, they have to put a particular item on their order and then that promotion will make them a VIP. It might be if they spend a certain amount of money, they're made a VIP. It could be any number of reasons or any number of conditions that can be met on a particular order that then results in them being made a VIP customer.

But these are all the different ways of... setting a customer as a VIP. And that's the first step to launching this kind of program is you have to identify which of your customers are going to be in the loyalty program. So then once you've got the customers identified, whether, you know, regardless of how you've done it, you've got a set of VIP customers that are different from your retail customers.

This allows you to then leverage different tools. to work with those VIP customers. The first is going to be price rows. On our inventory management, there is the ability to set up different price rows.

So out of the box, you're typically going to have two different prices, one for your reps or your wholesale pricing, one for your customers or retail pricing. You can add a third price type, which is VIP customer pricing. That means that once a customer is set up... as a VIP customer, then when they go into the cart, they're going to automatically see the discounted pricing that you've set up for VIP customers. That way you don't have to wait until the end at checkout to show them those savings.

We already know that they're a VIP customer when they come into the cart because you've got them set up as such. So knowing that they are a VIP customer allows us to display the particular pricing that you have. for your VIP or loyalty customers. Now, you can also use price rows to offer exclusive items to your VIPs. This would be done by having a price row for VIP customer, but not having a price row for retail customers.

This is an easy way to make items appear in the cart for your VIP customers only. And all this is done at the inventory level on each SKU when you're setting up the various. price rows.

That's how you can control item availability and item pricing for your VIPs versus your retail. Oh, my image disappeared. You also have promotions that you can leverage for your customer types. So you have conditions in the promo engine that basically look and say, is this customer a VIP customer? If they are, you can have promotions that are offered to them that are not offered to your regular retail customers.

A great example is free shipping. Maybe you offer your VIPs free shipping on all of their orders or any order above $50 or above $100, but you don't necessarily want to offer that to all of your customers because you want a reason for them to join the VIP membership. Okay, so that's one example, but the condition that you're going to look for is...

customer type. And when you have that condition of customer type set up, you can then use any action that you want, whether it be free shipping, discounted products, changing the pricing to your VIP pricing. You can have BOGOs that are set up for your VIPs only.

There are all these different actions that are used in conjunction with the condition of being a VIP customer. The upgrade flow. This is a really nuanced way of leveraging the different customer and rep types that a lot of people don't think of. The discounts and the promotions are a little bit more obvious, but you can also use different configuration in the ByDesign platform to say, based on who the person is, are they a retail customer?

Are they a VIP? Are they an affiliate? Based on who they are, what are they... What are they eligible to purchase?

What are they eligible to sell? What are they eligible to enroll as? And what are they able to sponsor?

Okay, so basically what you can do is you can say, as an affiliate rep type, I'm only allowed to recruit other affiliates. And if I recruit a team builder, my sponsor becomes the sponsor of that individual. That's all done.

using your rep types and customer types in the Freedom configuration. So basically what you're doing is you're creating a journey, okay? And it starts at the retail customer, it lands at the team builder or traditional representative, but you can have as many steps in between there as you want. And you can help guide your customers to the next logical step.

Okay, so this is how you can kind of help them to progress from customer all the way to team builder. And that's done through configuration settings to help them take the right next step and to limit them from doing things that you don't want them to do. The biggest example is that affiliate versus team builder. If those are two different rep types, you can control what an affiliate is able to sell, what an affiliate is able to recruit versus that team builder. And then finally, you also have the ability to set up separate communications.

This is using our autoresponder tools, which are automated communications that's available to all of our customers or our clients, rather. These communications can be sent based on rep or customer type. So that means that when a retail customer places an order, they can get a very different.

order confirmation email than your VIP customer does. In the same way, your affiliate can get different communication throughout the month that your team builder does. So you can really communicate to them in a way that makes sense to them. You can promote the items, promote the activities that you want them to do by leveraging the separate communications. And it's all driven by the customer and rep types.

Okay. When it comes to the customer, there are tools that are available for them with these loyalty and VIP programs. So again, because I am set up as a VIP customer in the system, when I go to my account in the cart, it's going to show me items that are only available for the VIP customers.

Retail customers aren't going to necessarily see all of this. So the biggest one is having a credit ledger. So that as a loyalty customer, as a VIP, I can always come in and see what credits do I have available. Are those credits about to expire? Where have my credits come from?

There's a lot of configuration options in here. Everything from not showing them their credits at all, which I don't recommend, to maybe you only want to show them, here's your credits that are already available. You might also want to show them, here's your credits available and the credits you've already used. You can go so far as to say, where did the credits come from?

Who did I refer to get those? What did I purchase to get those credits? So there's a wide range and a spectrum, if you will, as far as what tools you want to show your customers.

The key is to balance the tools with your program. Give them enough information so that they take the next step. You want them to redeem those credits, so be sure to show them when they have those credits available. If you want them to be able to see referred customers that they haven't gotten credits for, maybe that's something that you want to promote. Okay, the key is what do you want your customers spending their time doing?

And then show them the relevant tools in their My Account area to trigger that action and promote those next steps. One thing I do like to call out, and if any of our clients on the call do not already have this set up, there is a setting that allows you to put an easy upgrade button into the My Account area of the cart. So as a customer, every time I visit my account, I see that I have that option to upgrade to an affiliate or upgrade to a brand partner.

As a retail customer, maybe there's an option to upgrade. to a VIP. So I encourage you, if you're not leveraging this quick upgrade button in the My Account section, you should consider turning that on. It's going to help every customer to have that visibility as to what is possible, what can they become, how can they further engage with your brand, with your products. So it's a simple setting.

to be able to turn on that. And basically, you control the URL that it goes to. So as they're upgrading to a representative, you can have it linked to your enrollment site. As they're upgrading to a VIP, you can have it linked to the cart with the VIP item already in there.

So you can really play around with the URL setting there to make sure you're taking them where you want them to go in order to upgrade to that next step. in the path of progression that you've set up. And then not leaving out our reps, there's rep tools that are going to play an important part for the loyalty and the VIP programs as well.

The primary one is going to be customer groups. You can set up customer groups in your Freedom Back office that allow your reps to come in. and view by customer types. So as a rep, I'm going to come into my back office and I'm going to be able to very clearly see which customers in my organization are VIP customers and which ones are retail customers. This is going to be really important because I'm going to communicate to the two of them in different ways.

Okay, so the contact groups by default have communication tools built in with them. So when you set up a customer group for your VIP customers, every rep can come in and with the click of a button, send a message to all of their VIP customers at once. This is going to help them to further promote VIP programs.

If they want to offer something outside of what the corporate office is offering, they can do that. But basically, it's for the communication. Oh, did somebody have a question?

Or are we just... accidentally not muted. Okay, I'm going to assume it was supposed to be muted.

So the customer groups are a really great way of empowering your field to be able to effectively communicate to these two key groups of their customers. Just so you know, the same is also possible for reps as well. So as a leader, I want to know who in my downline is an affiliate.

who in my downline is a true representative and team builder, you can set up groups for that as well. But for today's purposes, it's really focusing on those customer programs. So be sure as you're launching these programs that you're setting up the tools for your reps to be able to leverage, not just the tools at the corporate level. In addition to the customer groups, there are also additional columns that can be turned on.

for the customer manager report. So as a reminder, the customer manager report is the key tool that's going to allow your reps to view and work with their entire customer listing. By adding a couple of key columns to that report, they can quickly find who in their customer listing, which one of their customers have credits available.

Are those credits about to expire? It's going to allow them to... follow up with those customers and remind them to use those credits that they have available. So again, one more way of empowering your reps to reach out and maximize the corporately offered programs of these reward points and the loyalty program.

There are some documentation KB articles that you can leverage to learn more about customer loyalty and VIP programs. Once you go to this initial page, you'll see that there are additional links embedded that take you into more detailed KB articles. So start with the high level one about loyalty programs.

From there, you can dig into how do I, you know, really offer auto ship as part of loyalty? How do I offer consecutive ordering as part of loyalty? So there's individual articles. for the details within that, but start at the high level and it's going to do a great job of not only telling you what's possible, but helping you to actually set them up as well.

All right, I'm going to pause for just a moment to check out the chat, see if there's any questions that we need to answer before we move on. I don't see any here. All right, so with that, I will move on to the second type of customer program.

So the first one I covered was loyalty, trying to increase the sales of your customers. Now we're going to talk referral programs. And the problem primary focus for a referral program is to acquire new customers, right? You want to encourage your existing customers to share your brand and share your products with new individuals. That's the crux of a referral program.

Obviously, there are additional benefits. For example, if you're rewarding your existing customers for referring others, yes, you are getting new customers, but that a referring customer who was already a customer of yours is going to get some credits, get some kind of perk that they can come back and spend with you as well. So you should see an increase in your existing customer sales as well by rewarding them for these referrals as well.

But primary objective here is new customers. So when it comes to referral programs, how do you capture a referral? Well, there's a couple of different ways. The first is that the new customer can self-identify when they're creating an account.

So when I come in as a new customer, if Dan is the one who has referred me to your cart, I can put his customer number in there. So that way, you know Dan's the one that told me about your brand. So you can allow each new customer to self-identify and let you know who referred them.

You can also be proactive and empower your existing customers to share their cart. Now, when an existing customer shares the cart, the link that the new customer gets already has the referral with it. So this is a much more sure way. of ensuring that you're getting those referrals.

You know, when you're relying on the referred customer to self-identify, you're not going to always get it, okay? By having the referral tools available for your existing customers, it's a much more sure way of capturing that referral. And it also makes it very easy for your customers to refer others.

You can literally put a link directly at the top of the cart. It'll be... there on every page.

So no matter if I'm looking at products, checking out, checking my account, this is in the header. So it's always there. Always easy for me to click and share that link either by email, on social media, by text. There's all different ways of sharing it.

But that's going to be the primary, the most easy way to get those referrals is to turn on the referral link. in the cart so that every existing customer can, with a click of a button, share their cart out to other customers and bring new people to your brand. So that's how you're going to capture the referrals. But once they're captured, how are you going to reward them? This is going to be done using the promotions engine.

Okay. So you're going to leverage promotion conditions. that look at customer referrals. And there's a couple of different ways you can do this.

One way is you can reward your customers based on the number of referrals that they bring in. So you can say you get one credit for every referred customer, or you can say you get 20 credits for five referred customers. All of this is possible through that promo engine.

So you can see the condition type there is gonna be the customer referred count. And then you simply, the first field there is the minimum referred customer. Do you want to reward them for every single, or do you want to say in increments of three, in increments of five, in increments of 10?

This also allows you to set up tiers so that yes, you get one credit for every customer, but at your fifth customer, you get an additional 10 credits. At your 10th customer, you get an additional 50 credits. So you can actually put together a stacking program so that the more your customers refer, the more rewards they get, okay?

And it's all done through promotion configuration using the customer referred count. In addition to the count of customers, you can also reward your existing customers when referred customers actually place the order. So if you don't want to simply reward them for sharing the link, but you say, okay, you will get your reward when your new referred customers actually place an order.

You can do that using a promo action. So you're going to use the same condition of looking for a refer, sorry, not the same condition. It's not the count anymore. Now it's just going to be a referred customer is the condition.

And then the action is going to be based on the order of that new customer. You can say, I want to give them a flat amount. So you get $10 in free credit for every new order that a referred customer places, or you can do it as a percentage and say they get 10%. of that new customer's order in credits.

So there's a few different ways you can set this up. But again, you're going to look at the condition of are they a referred customer? And then the action is going to award the original customer, either with a percentage or a flat amount.

You do also one small caveat I also want to point out here. You can indicate at what point the credits are awarded. You can say as soon as the order is submitted and posted, that's when the referring customer gets their credits.

You can also say wait until the order shipped. It's up to you in the business rules that you want to do, but there's a lot of different options. You can see there in that second screenshot, when you're awarding credits, there's a lot of different configurations there that you can leverage to really make the promotion work for your referral program.

Customer tools for referral programs are going to be very similar to the loyalty ones that we covered with that credit ledger. But with a referral program, oftentimes you're going to also want to show them who are the customers that I have already referred. This is going to help them to know who they've gotten credit for, who they haven't gotten credit for, and also who they've already referred so that they're not referring the same customers over and over again.

but looking for new customers to refer to to bring even more audience members to your brand. And then, of course, so that they can earn some additional credits as well. And then on the rep side, going back to that customer manager report, in addition to adding those columns for credits available, you can also add columns to show me how many referred customers each customer has.

So if I'm looking at my customer manager report, I can easily see that Dan has referred three additional customers to me or four or five. So this is going to help me as a rep to identify who are my customers who are taking advantage of this program. That might indicate that it's time to talk to them about becoming an affiliate.

OK, so it can be a really great green flag for your existing reps. to look at their customers who are referring a lot of people to the business, see if maybe they're interested in that next step. And that goes back to that path of progression that I talked about, helping customers to take the steps from customer to a business builder. That's not the only use case.

It may be that Dan has no desire to become an affiliate. He wants to remain a customer, but he loves these referral credits. If that's the case, maybe I just work with Dan on, you know, helping him with messaging, helping him to understand the latest and greatest promotions available.

There are ways that I can work with these customers and know who are the ones who are taking advantage of the programs, but also maybe who isn't. If Dan is a stellar customer, purchases multiple times a month and is not getting any referrals, maybe I need to talk to him about that. so that he can earn credits to help cover those purchases that he's making on a regular basis. The key is to empower your reps, make sure they have tools to be able to identify who the customers are that are participating in the various customer programs that you have set up.

There's also reporting tools that you have available so that you can, when I'm viewing a customer, I can see who they were referred by. So those are some reporting configurations that you can set up. And then finally, there are also some auto responders that you're going to want to take advantage of here. When you are sending out automated communications to your customers, letting them know that they've got credits about to expire, you can also send those to the rep. So I can send an email to Rich, my rep, and say, Rich, did you know your customer Dan has credits about to expire? The key is to communicate to the customer.

Dan, you've got credits that are about to expire. Don't miss out. Communicate to the rep. Hey, Rich, Dan's about to lose his credits. Make sure that you're connecting with him so that he doesn't miss out on the opportunity here. So making sure that you're communicating to everybody involved.

And the beauty is it's all automated. Okay. When you set up the templates, it's going to automatically go out based on credits and based on customer associations. You don't have to manually do this weekly or monthly.

It's something that the system's going to do for you as customers become eligible based on the expiration date of their customers. And again, there are some great articles out there for customer referral programs. I've put the high-level ones in here, but you'll see, again, each one is embedded with additional links so that you can view additional details. But this is going to help you understand how to set up a referral program, give you details on the specific settings that you'll need to turn on, and best practices, along with actual examples in these articles so that you can go in, self-service. Of course, if you have any trouble, you can reach out to our support team.

But the idea is we want to empower you to be able to do this on your own. All right. That concludes the how-to portion.

Now I'm going to jump. into some real life use cases, examples of current clients that are leveraging the tools I just spoke about to actually offer real programs out there for their customers. Real quick, again, going to do a quick check of the chat. Looks like no questions yet, so we will keep on trucking.

The first example that I'm going to talk, oh, that just went through. Two slides. There we go. The first example that I'm going to look at is one of our clients, Bravenly Global. They are a couple of years old, a very new and growing client.

You may have seen them mentioned in some of the industry publications. They've been featured in DSA articles. The CEO, Aspen, has been a guest speaker at different DSU events.

So it's likely that you've heard the name before, but they have a really great VIP program. They also offer affiliate and team builders. So you can see here, there are three different ways to engage. You can become a VIP customer, you can become an affiliate, or you can become a brand partner. Affiliate and brand partner are technically rep types in the back side.

The VIP customer, however, is a customer type. So they do have two customer types of retail and VIP, two rep types of affiliate and brand partner. So when launching their VIP customer program specifically, they wanted to increase repeat purchases and increase the dollar amount that these VIP customers were placing. Okay, so they did this by offering them discounts, product rewards, and referral credits.

So with their VIP program, obviously the first step was to establish their customers as either retail customers or VIPs. The way that they are doing it is using that inventory attribute. So they have a particular VIP item that can be purchased through the cart.

And when that is purchased, they are automatically set as a VIP customer behind the scenes. So that inventory attribute. plus their comp plan is helping them to set up a customer type of VIP.

Once they have that VIP customer established, then they are using price rows and promotions in order to offer the discounted pricing. You can see here they've got their different pricing set up. So you can see that the VIP customer has lower pricing than the retail customer. It also affects the volume differently.

So that's another thing I want everybody to be very aware of. When you're offering discounted pricing using various price rows, you can adjust the volume that your reps are getting at the same time. That way you're not simply decreasing your margin on products. you are also impacting the volume that the reps are getting so that your margins are protected. So the price rows are a great way of doing that, but they're also using promotions.

And this is important because the price rows only work if we know that you are a VIP. So your very first time of adding the VIP item to your cart, we want to make sure you get the VIP pricing then as well. Every subsequent order, we already know that you're a VIP, so the price rows take care of it.

But on that first order, when you add the VIP item to your cart, they wanted you to get the VIP pricing on that initial order as well. So the way that they do that is through the promotion. There's a promotion condition that looks for that VIP SKU. So does Dan have the VIP upgrade item on this cart? If yes...

then I'm going to use the action of price type change. So if he's got this item on his order, then I'm going to change the price typing on this order from retail to VIP. And then every subsequent order is handled by the actual customer type.

But this was a way to make sure that they didn't have to wait to get their discounts on future orders, that they get it on the initial order as well. And again, it's just a promotion condition and action. that allows them to offer that discount on the very first order. If it's not a discount, if it's free shipping, you would use the same condition, but use a different action so that instead of using the price type change, you're going to affect the shipping on that order. Okay, so you can use any action you want, but the promotion tool is how you're going to ensure they get those rewards from the very beginning.

And again, it's all configuration in your Freedom Back office. Finally, the final perk that they have for their VIP program, in addition to the discounts, is that they offer 10% back in product credits. What this means is as a VIP customer, every single dollar that I spend, I'm going to get 10% back in product credit.

I always like to say this is a lot like that Kohl's cash or any kind of bounce back that is offered. The idea is we want you to at... every purchase have a reason to come back and purchase again.

And giving product credit back to them is a way of doing that. This is going to be done in using a combination of our credit system and promotions. The credit system is a system that is available to all of our clients and allows you to issue credits to either customers or reps or both.

So you can see in my screenshot here, you can have multiple credit accounts set up, and that allows you to award credits to different individuals and in different ways. But on the customer side, they're only going to see the credits that apply to them, and they're going to see them in their cart so that they can go and redeem them. But once you have the credit accounts set up and ready, you're going to use the promo action of award credit. This is basically going to allow you to say, again, the condition is that they are a VIP customer. The action is that on each order, they get a product credit awarded, and you can do it as either a flat amount or as a percentage of whatever they purchased.

Again, lots of configuration options there. You can set expiration dates on these. You can round up or down.

You can determine if... partial credit should be awarded or not. All of that is done when you're setting up the action of award credits through the promotion engine. But through the combination of promotions, credits, and inventory attributes, Ravenly is able to offer a VIP program so that anybody who joins as a VIP customer gets all of the benefits that would encourage them to come back.

and engage with the brand and purchase more frequently and add a higher amount. All right, the next case study or example that I'm going to go through is for one of our clients, Pure Haven. So Pure Haven is a little bit different in what they're offering, but you're going to see a lot of similarities in the configuration.

The program objectives that Pure Haven had is... We want repeat purchases from our existing customers. We want to drive the size of order up specifically to the $100 threshold.

We also want new customers and we want to encourage auto ship participation. Okay, so you can see they're really wrapping a lot of objectives into this rewards program. And you can see the way that they talk about their program is going back to that path of progression from customer to consultant. Right there on the rewards page, it leads with choosing how you want to engage with us. Do you want to engage as a customer, as a member, through the subscribe and save?

or as a consultant. So they're establishing that entire path from day one. Specifically, when it comes to the referral rewards.

So this is the piece of that path of progression that's going to reward customers for referring others. When you're setting up referral rewards, we already talked about the settings that you need to allow your customers to share their cart and see their credits. There's also some freedom settings that you're going to want to turn on that empower you to reward those referred and referring customers.

So there's a few freedom settings you're going to want to turn on. But then once you've got those turned on, it all comes down to promotions. Again, the promo engine is the core foundation to these referral programs.

So you can see a couple of examples there. Um, the condition that you're going to look for is going to be one of two, either the referred customer order, which is going to be a benefit that you offer to the customer who was referred by Dan, or you're going to use a referring customer order, which is going to reward Dan for doing the referring. So there's a couple of different conditions you can look at there depending on who you want to reward.

And then the act. is either going to be a discount or free shipping for the new customer, or most of the time it is awarding credits to the referring customer. Doesn't have to be.

You can actually issue gift certificates. You can give them a promo code. You can give them an exclusive product on their next order. There's a lot of different options, but in my experience, what I see most often is that you're rewarding your existing customers with credits.

so that they come back and place another order with you. And the most common thing that you're rewarding your referred customer, the new customer, is with a discount or with free shipping. Basically, what you're setting up through these conditions and actions is empowering Dan, an existing customer, to share his link with any new customers and say each new customer gets 10% off their first order.

Okay? And... And then Dan would get $10 in credit for every new order that is placed.

That's a simple referral program that is possible through the promotion engine and would encourage Dan to share his cart with as many new people as possible. So that's the referral portion of this program. They also have some loyalty items built in.

They call it member rewards. And the member rewards that they have is... similar to what you saw with Bravenly.

They do offer a product credit. So every purchase that a member places, they get 10% back in product credits. So again, you're going to use the promotion condition of a member customer or VIP customer.

And then the action is going to be award credit. You can do it as a flat amount or as a percentage. And then they do offer exclusive items to their members. So they're leveraging the price rows that I discussed earlier.

where you can have a price row for your members or VIPs, but not for retail. This is going to allow those VIPs or members to purchase items that are not available to the retail customers. Those are the two primary rewards that they are using there. They do offer one-off product credits at anniversaries and so on.

That's going to be done through the credit system. where they can go in and manually award credits or by bulk using a spreadsheet for anybody that has a birthday within the month or has an anniversary. It can be set up as a promotion when they renew their VIP membership. It can kick off that $10 credit.

So there's lots of different ways to set these things up. And really the key is to come in with a strategy, understand what... kind of behavior you want to drive with your customers and then configure the tools in such a way to make that happen. All right, I just talked for a very long time. I'm going to pause here and ask, are there any questions that we want to answer on the call or in the chat?

Let me take a look. Hey, I don't see any there. So if there aren't any questions, we can definitely end it here and I will send out the recording along with the slides.

I thank you all so much for joining me. I love sharing what's possible through the ByDesign platform. If you've got specific questions, reach out to myself. You can do that via email, via LinkedIn.

However you can get a hold of me, please do so. Also, feel free to... direct your questions to Dan or Jerry if you've been working with them.

Also know that we have a great support team and you can email them at any time. It's support at bydesign.com. So if you've got additional questions, please reach out to us. We want to make sure that you know how to offer these programs and that you're maximizing every possible tool that's available to you through the ByDesign platform.

So once again, thank you everybody for joining me. And I hope to see you again next month as we continue our webinar series. Thanks so much, guys.

Transcript for:Exploring Customer Loyalty and Referral Programs

Transcript for:
Exploring Customer Loyalty and Referral Programs