Credit or Loyalty Point Management in Saral

Credit or Loyalty point which can also be called Reward Point is one of the promotional strategies used in business to retain or attract customers. This type of point system is used in Retail business where the customer is awarded certain points on the purchase of a defined amount or quantity of commodities.

This type of promotion is applicable only for cash sales where the customer will be a walk-in customer. Here, the business will define a pre-set number of Credit or Loyalty points for the purchase done by the customer based on the item group or quantity or bill amount. These accumulated Credit or Loyalty points will be awarded so a certain duration and will lapse after the period.

Customers can redeem these Credit or Loyalty points during the period in exchange for cash or purchase of new products. The redeem value for each point or the new product purchase condition will also be pre-defined by the business.

For tracking these Credit or Loyalty points, each customer will be identified by a unique customer id or card number or mobile number. This will have the customer history of purchase, points gained against each purchase, points redeemed as well as points lapsed with the available closing balance.

E.g. A customer walks into a supermarket to buy some grocery and household items. On billing, the customer will be provided with a customer card under the Loyalty program, which will accumulate 1 point for every Rs. 100 purchase and the validity of the point will e for 3 years from the date of earning. The customer purchased items worth Rs. 5500 and the points accumulated are 55.

The customer is a regular customer and hence, the points will continue to accumulate in the customer account. After a few days, the customer wishes to redeem the points accumulated on the purchase done. The total accumulated point is 1000 and the redeem value for each point is 50 Paise. Hence, on the current purchase, the customer will pay Rs. 500 less which will be set off form the loyalty points.

Credit or Loyalty Point Management in Retail Segment

Below listed are some common Retail businesses where Credit or Loyalty Points Management plays a crucial role in
order to have a competitive business share.

  1. Grocery/Provision Stores
  2. Super Market/Hyper Market
  3. Textile/Apparel/Garment Shops
  4. Automobile Stores
  5. Books & Stationery Shops
  6. Electronics & Home Appliances Stores
  7. Hardware & Electricals Stores
  8. Liquor & Wine Shops
  9. Pet Stores
  10. Pharmacy /Medical
  11. Furniture shops
  12. Sports clubs

Credit or Loyalty Point Management in Saral Billing and Accounts

In Saral Billing and Accounts, Credit or Loyalty Points Management is well built in order to meet all the requirements of Retail business.

Businesses can define the Credit or Loyalty Point for each item or item group or bill amount with the slab option. This can also be defined from the effective date, with the option for auto or manual Lapse of points, and Redemption Value definition per Point.

Credit or Loyalty Points will be accumulated as per the defined setting on Cash Sales and the redemption value will auto reduced from the bill amount when the customers want to redeem the points.

Benefits of Credit or Loyalty Point Management in Saral Billing and Accounts

  • No manual burden to maintain Credit or Loyalty Points
  • Can send SMS on total points accumulated and its lapse date to all customers
  • Redemption, as well as lapse, can be handled automatically

Credit or Loyalty Point Configuration, Utilization, and Reports in Saral Billing and Accounts

Configuration:

  1. Go to Master >> General Settings >> General, click on Enable Walk-In Customer and apply the settings
  2. Next, go to Inventory >> Inventory Settings >> Features, click on Enable Credit Points. Hyperlink of Credit Points Config will be displayed. Click on it.
  3.  In the Credit Points Configuration window, enter Effective From date and the lapse type for points
  4. If the points are to be lapse on a particular date, select Lapse on Specified Date and enter the date. Else, if the points are to be lapsed after a particular period from the sales, then select Lapse on No. of days from sale date and enter the duration
  5. Enter Redemption Value per Point (Rs.). for each point to be redeemed. The point value can also be set upto 3 decimal points under Decimal Places for Points which will be considered during accumulation. If decimals not required for point accumulation then set it as Zero.
  6. Select the search criteria from the dropdown under Search On i.e. the customer details can be searched based on these settings during billing.
  7. Enable/Disable Earn Credit Points on Redeemed Bill on requirement basis. If enabled, Credit points will be accumulated even on invoices where credit points are redeemed.
  8. For new card number generation, you can opt for an automated or manual setting. For an automated generation, enable Auto Generate Card Number and enter card number Prefix, Suffix (if any), and Starting Number of the number series. This will be auto-populated in the Walk-in customer details window and can be changed later. After entering all the details, save the settings.
  9. Next, to define the points, click on Credit Points Definition Settings hyperlink in the same window.
  10. Enter the credit point Description or any title and the duration of this setting (From Date & To Date) for which it will be effective.
  11.  Select the criteria from drop down under Based On as per which the credit points will be considered. i.e. Bill or Item or Item Group.
  12. Select the criteria from drop down under Calculation On as per which credit points will be calculated. i.e. Bill Amount or Taxable Amount or Quantity or Quantity with Slab.
  13. The selection of Point 11 & Point 12 is as explained below
    1. If consideration is based on Bill, then the calculation will be based on Bill Taxable Amount or Total Bill Amount. In such case Value against each Point has to be defined.
    2. If consideration is based on Item, then the calculation will be based on Bill Taxable Amount or Total Bill Amount or Quantity or Quantity with Slab. Here, Value against each Point has to be defined per item or item quantity.
  14.  If points have to accumulate only for sales invoice above a certain amount, then enter the per invoice amount at Earn credit points bill value more than. Else, points will be calculated from the Bill Value of Rs. 1. Save these settings and close.
  15. Lastly, go to Payment Heads in Inventory Settings. Here, under receipt type Credit Points press F9 to create a new ledger for Credit Points. This is created under the indirect expenses group and helps to track the redemption value. Apply the configuration and close

Utilization:

  1. Go to Inventory >> Sales Invoice, here select Cash sales type of invoicing, and select the customer from Walk-In Customer details. Enter the bill details and save the Invoice
  2. To redeem the credit points, click on Payment Details and enter Credit Points for redemption. The redemption value will be autoloaded and will be reduced from the bill amount.

Reports:

  1. Go to Tools >> Show/Hide, enable CreditPoints History, and CreditPoints SMS. Save and close the window
  2. Now, go to Inventory >> Views >> Credit Point >> Credit Points History. Here, select the Members (Walk-In Customers) or Ledgers and the details will be loaded to view. Detail View will display points accumulated per bill.