What is Loyalty points?
Loyalty points reward repeat purchase by accruing value a customer can redeem later. The accounting question is that unredeemed points are a liability, not a marketing line.
Loyalty points reward repeat purchase by accruing value a customer can redeem later. The accounting question is that unredeemed points are a liability, not a marketing line.
In Bangladesh
Superstores and pharmacy chains use points to hold customers who otherwise shop on price. Run on paper cards, the scheme costs more in disputes than it earns in repeat visits.
An example
A superstore awards one point per BDT 100 spent, redeemable at one taka per point. Unredeemed points are a liability of real money, which is why the scheme belongs in the system rather than on a card.
In SORS ERP
SORS ERP includes a loyalty program with points, bulk award, customer segments, coupons and flash sales, tied to the customer record used at the counter and online.
Also called
- In Bangla
- লয়ালটি পয়েন্ট
Questions
Answered plainly, including where the answer is no.
Do unredeemed points need to be accounted for?
They represent a future obligation, so how they are treated is a question for your accountant. At minimum you should be able to say how many are outstanding, which a paper card scheme cannot.
See SORS ERP running on your own numbers
A 30-minute demo in Bangla or English, with your products, your VAT setup and your questions.