Wondering what the experiences of those who use rewards points is across various price ranges. What are the products for which they create teh greatest
Regarding reward points, are they set to a specific fraction of currency unit and awarded on the basis of purchase amount? For example, If I want to give a repeat customer a 10% discount and I'm selling $100.00 items, I could set these items to earn 100, 10 or 1 reward points and make the reward points worth $0.10, $1.00 or $10.00 respectively? This is the basic idea, correct? Although the different rewards point values work out the same they would probably not be the same in influencing customer purchasing behavior. How do you set this rate for optimum effect?
Also, there are different profit margins for different price level items, e.g. there is a bigger margin for us with a $1000.00 item than for a $100.00 item. We might want to do rewards for the lower price tier but not the higher end. How would this be configured? I assume doing the rewards will increase sales volume on items they apply to.
Finally, we might have some slow moving items which we would want to move. Could we set up higher rewards points earned and/or lower rewards points needed for the purchase of these or would that be best handled by just a sale price or discount coupon?
Thanks for any insights shared.