Requirements for Loyalty Discounts

Prepared By: [Your Name]

I. Introduction

The main goal of this document is to clearly and thoroughly describe the essential requirements for effectively introducing loyalty discounts in our customer loyalty program, to encourage repeat business, and to foster long-term loyalty and satisfaction among current customers.

II. Eligibility Criteria

A. Customer Profile

Criteria	Details
Active Membership	Customers must have an active membership with the loyalty program for at least 6 months.
Purchase Frequency	Customers must have made at least 5 purchases within the last 6 months.

B. Transaction Requirements

Criteria	Details
Minimum Purchase Amount	Customers must spend a minimum of $50 per transaction to qualify for a loyalty discount.
Eligible Products	Loyalty discounts can only be applied to full-priced items and selected categories determined by the marketing team.

III. Discount Structure

A. Tiered Discounts

The loyalty discounts are structured in tiers based on the total amount spent by the customer within the loyalty program:

Spending Range	Discount Percentage
$50 - $200	5%
$201 - $500	10%
$501 and above	15%

IV. Implementation Guidelines

A. System Integration

The loyalty discount program will need to be integrated into the existing Point of Sale (POS) and e-commerce systems. This requires collaboration between the IT, Marketing, and Financial departments for seamless execution.

B. Validation Mechanisms

Workers at checkouts must be trained to verify eligibility criteria manually and/or through automated systems alerts to ensure that discounts are applied correctly.

V. Reporting and Monitoring

A. Performance Metrics

Key performance metrics should be tracked and reviewed monthly, including:

Total number of loyalty discount transactions
Total discount amounts applied
Incremental revenue generated from loyalty discounts

B. Audit Processes

Regular audits should be conducted quarterly to ensure compliance and to identify any fraudulent activities. Report findings should be shared with the senior management team for further action and resolution.