In this post I will focus on the enhanced Loyalty program feature in Microsoft Dynamics AX 2012 R3. AX 2012 R3 gives the flexibility to configure the loyalty tier and complex earning and redemption rules. In this blog we will have a walk-through on the loyalty tier configuration where in the Loyalty Customer has to earn few designated loyalty points to reach to the next loyalty tier. In Retail business, Tiered loyalty programs are customer loyalty programs that give various benefits based on tier a customer is in.
The tiers are set with milestones that a customer must achieve to proceed to the next tier. These milestones are usually amount spent on Retail sales by the customer, but they can be anything. I have seen retailers using the number of orders, number of quantity purchased, and an increasingly popular one is total loyalty points earned.This is one of the requirement for loyalty program that is widely used by many of the Retailers. These types of programs can have an impact on bottom-line results if executed successfully. Few Customers increased their spending or changed other purchasing behavior in order to achieve a higher tier status in a rewards program. This can benefit the Retail in terms of more sale in their pocket.
To start with we will first look at the loyalty program structure in Microsoft Dynamics AX 2012 R3.