Maximise Customer Retention | Loyalty Card Programme - products

By: Maxiclub  11-11-2011

Maxiclub is a multi-branch, ‘points based’ loyalty system. Members are rewarded for their purchases in points, where one cent equals one point. This is not a discount, but rather a rebate that is electronically credited to a members account. Members wishing to redeem their balance must do so on a subsequent visit, thus driving future purchases.

No minimal balance is required, and the member’s points are available 72 hours after earning them. The member can track their points accumulated in a number of ways:

  • In store – members can ask the clerk to check their available balance via the computer terminal
  • SMS – their balance will be sent to them via SMS
  • Web – a member can log into a member page and view a statement of their account on-line.

Our loyalty program can run using two models:

Cash model

– The value of points issued by a merchant is off-set against the total points redeemed during the month. A net amount is either deposited or withdrawn from the merchant’s bank account at the end of the month. The surplus money is held in a bank account controlled by the group.

Contingent liability model

– In this model, no money changes hands. When a merchant issues points, their liability to the club goes up. This liability is reduced when redemptions are done. A cost is only incurred when the member redeems their points. The actual cost is only the cost of sales of the goods bought with the points, thus substantially reducing the cost of the reward. Periodically, the merchant’s net position is checked within the group and an equalisation transaction will be done if necessary.

The reward rate earned by the members is set by the group. This rate can also vary according to customer defined parameters, with examples such as:

  • Card status (Platinum, Gold etc)
  • Day of the week or time of day

Our solution is a ‘closed loop solution’, meaning that points earned can only be redeemed within that particular group thus driving the client back to your brand. In order to prevent an ever increasing group liability to its members, we advise that the group ahs a policy of expiring points that have not been used by a certain date. Once a year we run a “use it or loose it” campaign advising the member that a portion of their points will expire if not used by a certain date. We normally run this campaign during the groups’ quiet period of the year, thus driving turnover.


Members can purchase Incentive Rewards which can be used as a gift voucher or as part of a staff motivational program. The client will either be issued with a new gift card with a monetary amount loaded onto the card or the voucher can be loaded onto the members existing loyalty card.

This voucher can also be valid for a defined period. This is particularly useful when attempting to drive members to your group during a marketing campaign.