B2B Academy: Sample Rewards Card Program

If you’re looking to develop a rewards card program—and its accompanying technology—you can consider this as a concept note to jumpstart your brainstorming process.

While the program description below is tailored for a gas company, you can easily adapt this content for rewards programs for retail and other consumer services.

When making your project proposal, feel free to use the template below. And we, at Plumveil, would appreciate it if you would cite this resource and link back to this page.

Content

1. Business Objectives

2. Program Description: “Station Loyalty Card”

3. Technology solution: The Rewards Card System Information System

4. Core business rules

5. System architecture and security

6. Implementation timeline

7. Rollout objectives

8. Support and maintenance

9. Proposed next phases

10. Data captured and generated by the application

11. Plumveil B2B Academy

Business Objectives

Program Description: “Station Loyalty Card”

This rebate program will revolve around two core ideas:

• Fuel rebate. Customers are rewarded with rebate from fuel consumption, which can then be claimed from future fuel consumption; and

• Station loyalty. The fuel rebate is exclusive to the customers’ preferred station, while the program is operational across all stations of the gas company.

The following are the key mechanics of the rebate program:

• Points system. The fuel rebate comes in the form of points earned and burned from fuel consumption. For every $50, the customer is entitled to 10 points, which is equivalent to $1 redeemable from their next visit.

• Card. Customers who want to take part in the program will be provided with a physical card, which will help keep track of the points they earn and burn.

More details on the proposed mechanics are provided in the section on Core Business Rules.

The Station Loyalty Card program can be positioned or branded as follows:

External communication

• Premium membership. Membership in the program or being a card-bearer should be communicated as the Gas Company’s expression of its value, appreciation, and loyalty to its customers.

• Customer loyalty to station is a badge. The Gas Company is providing its customers with an opportunity to express their value, appreciation, and loyalty to their preferred station. This may also be presented as something that fosters a sense of community.

Internal communication

• Knowing customers better. The data gathered from customers, on both personal and transactional information, can help the Gas Company with its business decisions.

• Foundation to link future promotions: The Gas Company can leverage this card membership by making it the base for other promotional initiatives, such as member entitlement to other forms of rewards such as discounts or freebies.

Technology Solution: Rewards Card Information System

To deliver the business objectives and the rebate program, this proposal offers an integrated application, hardware, and operational solution that will perform the following:

• Facilitate and manage the fuel rebate system, particularly in enabling the points system;

• Create and store a database of customers, transactions, station records; and

• Generate and transmit reports for the Gas Company operations team derived from the said database.

The application or software component of the solution will have the following key functionalities:

• QR code technology: QR codes, which will function as a unique identifier for the customers, will be imprinted on the cards. The QR codes will be scanned using the tablet housing the application, which makes the tablet serve as the QR scanner as well.

• Member sign-up. Enable users (station cashier) to fill-out customer profile page of newly acquired Station Loyalty Card members. In the last section, we itemize the data points that will be captured in new customer sign-ups. This will also allow for a card to be logged into the application and exclusively associated with the newly acquired member.

• Earn and burn transactions. Enable users to record each “earn” and “burn” transaction by responding to fields requiring data points such as volume and amount among others. The last section below also itemizes the data points that will be captured for every earn and burn transaction.

• Local data storage. The data captured and generated by the application will be stored in the device hosting the application.

• View database. Enable users to view the data captured and generated by the application, namely the customer database and past transactions. Users will only be able to view the database exclusive to their station.

• Generate and transmit reports. Enable users (cashier, manager, and/or owner) to generate reports (containing the customer and transaction database) required by the Gas Company

• As a preferred and default setting, reports from each station will be transmitted to the Provider’s central storage when the device is connected to the internet and allowed to sync. Each report from all stations will then be aggregated and transmitted to the Gas Station operations team.

• As a backup, each station can also export the report as a file, which allows them to email it to the operations team of the Gas Company.

The hardware component of this solution are as follows:

• Tablet (or any alternative POS-like device)

  • The tablet will host the application.

  • It will also function as the card reader.

  • It is preferred that stations procure their own tablets.

  • This project also allows for stations to package the tablet with this solution.

• Cards

  • Each station will be provided with a bundle of cards, which will be replenishable upon request.

Core Business Rules

Points system

• The Station Loyalty Card will only be applicable to fuel (potentially to the retail store as well in the future).

• For every $50, card members will earn 10 points.

• When burning, 10 points equates to $1.

• Special opportunities should be offered to earn points such as:

  • Member entitled to 50 points upon sign-up (but may only be burned on the next visit)

  • Member entitled to 50 points within (before or after) seven (7) calendar days of birthday

Member sign-up

• Station attendants must always offer card membership to every customer for the first few months. They must also say that the sign-up will entitle the new member to 50 points. Lastly, the attendant must say that the Card is only usable in the same station.

• Customers will fill-out details on a sheet to be provided by the attendant.

• The Cashier will immediately fill-out a new membership page on the Application. Should there be multiple ongoing transactions, the cashier must prioritize payments and then fill-out the new customer page once traffic is manageable.

Per transaction

• After a few months from rollout, the attendants will simply ask if the customer is already a member of the Rewards Card program.

• The physical card must be handed to the attendant with the payment, whether via cash, card, mobile wallets.

• The member will not be allowed to earn and burn points without the physical Rewards Card.

• Members will not be allowed to burn the points in the same transaction they earned it. The burning of points will only be allowed on the next transaction even on the same day.

System Architecture and Security

System Architecture

• The central database will be hosted in Amazon Web Services (AWS) for continuity, stability, and scalability.

• The system will utilize web servers for processing synchronization of the mobile app with the central database.

• The system will utilize database servers for storing the synced data from all stations.

• Stations will be able to access the program via the tablet. An internet connection is required for the mobile app for syncing with the central database.

Security

• Hosted services will be protected using standard security protocols and use of 3rd party services like CloudFlare for denial-of-service protection and Trend Micro Deep security for intrusion detection and prevention (or any other alternative services).

• All data stored and transmitted in the mobile app and hosted services will be encrypted using a standard encryption algorithm commonly used by governments, banks, and medical services worldwide.

Implementation Timeline

Week 0: Contract signing

Week 1: Advance full payment from at least 10 stations for mobilization

Week 1-2: Consultation and confirmation of new processes that the Rewards Card System will require

Week 3: Consultation and confirmation of the following:

• visual mockups of the application

• content of the reports

• card design

Week 4: Start of application development

Week 12: Alpha staging and internal testing

Week 13-14: User Acceptance Testing (testing by the Gas Company operations team)

• 1st pass (beta), fix bugs

• 2nd pass, fix bugs

• final pass (if needed)

Week 14: Issuance of User Acceptance Certificate

Week 14-15: Planning for rollout

• identify first few stations and order of rollout

• travel arrangements

Week 16-17: First wave of rollout to stations, including training for Gas Company operations team and Stations; Go live for the Station Loyalty Card program

Week 18-19: Period of evaluation and tweaking of processes, the application, and others if necessary

Week 20 onwards: Continuous rollout; Public announcement or official launch of the Station Loyalty Card program

Week 32: Rolled out in at least 50 stations (target)

Rollout Objectives

The project rollout has the following objectives:

Support and Maintenance

The Support and Maintenance component of the project will cover the following:

Application support

• Automated periodic transmission of aggregated reports from stations to Gas Company operations team via Google Play Store

• Maintenance, bug fixes, and security updates for the application via Google Play Store

• Maintenance and backup for the central database

Operational support

• Customer support for all stations and Gas Company operations team through a contact center available daily for 8 hours (9am-5pm)

  • Troubleshooting on the hardware, specifically the tablet and cards

  • Troubleshooting on the application

  • Other operational concerns

• Provision of card replenishment upon station request

• Management of other mission critical concerns

Upon rollout of the Loyalty Card system, the station is already entitled to this Support and Maintenance service. A period of one month from rollout will be treated as a stabilization phase. After this one month stabilization period, the formal one-year Support and Maintenance component will begin.

Proposed Next Phases

Business

• Earn and burn points anywhere: The Gas Company operations team may make the decision to allow the Reward Card members to earn and burn points in any station.

• Earn and burn points not just on fuel: Members may earn and burn points from the Gas Company’s convenience stores, service centers, and other offerings.

• Privileges other than points. This will allow the Gas Station to integrate other promotions to be integrated with the Loyalty Card system. Members may be entitled to other privileges, whether from current or future promotions.

Technical

• User interface for Gas Company operations team. The operations team may be provided with a user interface to allow for digitized oversight.

• Online account and/or mobile application for members. Customers can track their transactions through an online account accessible through a mobile application. Other information, functionalities, and reward systems may also be integrated into the mobile application.

Data Captured and Generated by the Application

Data to be acquired from customers signing-up

• Name (separate fields for surname, first name, middle name/initial)

• Birthdate

• Sex

• Mobile

• Email address

• Type of vehicle (drop down menu): Sedan, SUV, motorcycle, truck, etc.

Data to be logged per transaction

Earn

• Date and time stamp*

• Station name and/or code*

• Customer card number**

• Customer name**

• Volume (number of liters)***

• Amount***

• Points earned (system calculates & pre-fills points earned based on amount)

Burn

• Date and time stamp*

• Station name and/or code*

• Customer card number**

• Customer name**

• Volume (number of liters)***

• Amount***

• Points burned

*System-generated

**System pre-fills upon card swipe

***Typed by cashier

Periodic Reports per station (able to cover any period: daily, weekly, every 2 weeks, monthly, quarterly, yearly, since day 1 of use)

Earn

• Total points earned

• Total volume (number of liters)

• Total amount

• Top point earners (e.g. Top 20 customers)

• Table of all transactions

• Total outstanding points unused

Burn

• Total points burned

• Total volume (number of liters)

• Total amount

• Top point burners (e.g. Top 20 customers)

• Table of all transactions

• Total outstanding points unused

Periodic Reports for all gas stations or franchisees covered (able to cover any period)

Plumveil B2B Academy

If you’re looking for more project concept notes, Terms of References (TORs), or case studies, check back with us as we’ll be publishing more business resources as part of our B2B Academy series.