QuickBooks POS: Customer Rewards Overview

What parts of a transaction qualify for Customer Rewards?

Inventory, Service, Non-inventory, Group, Assembly
Earns Rewards: Yes
Redemption: Yes

Sales Tax
Earns Rewards: No
Redemption: No

Shipping Charges
Earns Rewards: No
Redemption: No

Gift card/certificate purchase
Earns Rewards: No
Redemption: No

Gift card/certificate redemption
Earns Rewards: No Impact
Redemption: No Impact

Charges to customer account
Earns Rewards: No impact
Redemption: No impact

Payments on customer account
Earns Rewards:  No
Redemption: No

What each rewards component is for

Reward Manager: Point of Sale program window where you define the parameters of your Rewards program.

Rewards Member: Any customer that has been enrolled as a member in your program. Point of Sale automatically tracks reward members’ purchases and rewards.

Purchase Threshold: The amount a customer must purchase during the purchase tracking period to earn a reward. Another reward is earned each time the customer purchases reach this amount.

Purchase Tracking Period: Time period within which purchases must be made to qualify for rewards. Specify a start and end date; or leave end date open-ended.

Reward Amount: The reward value earned when a customer meets the purchase threshold. This can be defined as a dollar amount or as a percentage off a future purchase.

Reward Expiration: (Optional) Specifies how long a reward is valid for redemption. Measured from the earned date, adjusted for a reward blocking period if used (see below).

Earned Reward: Pending reward that has been earned but not yet redeemed.

Purchase Balance: A customer’s current sales accumulation toward earning the next reward.

Reward Redemption: The act of applying a customer reward to discount a new purchase.

Redemption Blocking Period: Period after the qualifying sale in which redemption of an earned reward is not allowed. This can be set to the length of your return policy to help avoid returns of items for which a customer has already earned and redeemed a reward.

Qualifying Purchases/Redemptions: The list of items whose purchase qualifies toward earning a reward and/or that qualifies for reward redemption. To qualify, items must be purchased within the purchase tracking period. The return of a qualifying item reduces the customer’s current purchase balance.
Point of Sale integration with Microsoft Office allows you to write letters to your rewards program members to remind them they have earned a reward and to reinforce the benefits of their reward membership.

Filter your customer list to display these members and then choose Write Letters from the I Want To menu. Select the Customer Rewards Earned template and customize if necessary.

Because no money changes hands when a reward is earned, it is a non-accounting event and has no immediate effect on your financial accounts. Likewise, the expiration or cancellation of an unredeemed reward has no effect on your financial records. Point of Sale reports can be used to track earned, but unredeemed rewards.

A reward redemption is a discount that is accounted for in the same manner as other sales discounts.

By default, Point of Sale sends net sales amounts to QuickBooks income accounts and doesn’t account for the discount separately. However, if you elect the preference to send separate original and discounted values, Point of Sale, if necessary, creates and reports reward discounts in the Sales: Rewards Discounts income account.

Getting Started

Many retailers offer incentives to repeat customers, based upon their spending level. Also referred to as a Customer Loyalty program, this can be a very effective tool for maintaining and expanding your customer base.

You define the parameters of your rewards program in the Reward Manager, available from the Customers menu. New customers can be added to the program automatically or selectively as you make sales (or on their customer record).

Members are indicated by the rewards program icon QB Rewards in various places in the program.

Point of Sale tracks purchases for each program member and alerts the cashier when a reward is earned or when a reward is available for redemption. Merchandise returns are subtracted from the current purchase tracking balance.

Rewards earned and rewards redeemed are printed on customer receipts, as is the spending amount needed to qualify for the next reward.

All stores share a single reward program, which can be defined only at Headquarters. Customer purchases and redemptions made at any store are updated to Headquarters with each Store Exchange and the updated information sent back out to remote stores. Important Note

Reward redemption reports are available for tracking purposes. Reward discounts are also added to the item grid of saved receipts for later viewing.

If you are requiring employees to log in, access to the Rewards Manager and to redemption reports are controlled by security rights.

To set up your Reward Program:

Note: You must have company preference I want to track customers enabled to use a customer rewards program. You can turn this preference on the General page of company preferences (access from Edit menu).

These are basic steps of a rewards program. Press F1 or select the help links on any screen for more detailed instructions for that task.

  1. From the Customers menu, select Reward Manager.
  2. Define your program (purchase amount required, reward amount or percentage off, reward expiration date, qualifying purchase dates, and other options).
  3. Enroll customers: You can enroll all customers, be prompted to enroll customers as sales are made, or manually enroll customers by editing their individual record.
  4. Sell and promote your program! Point of Sale tracks reward purchases, and cashiers are alerted when a reward is earned and when one is available for redemption.

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