Think of two customers at your store. Both spend the same every time they come in: about $20,000. The difference is when they come back.

The first one drops by once a month, when it’s on the way. Over a year they leave you $240,000. The second one comes every ten days. Over a year they leave you $720,000.

They don’t buy pricier things or carry more per visit. They buy three times as much because they come back more often. That’s the number in the title, and it doesn’t come from a study: it’s math you can redo with your own figures. What matters is which side of that math each customer is on, and what you do to move them to the second group.

I’m Lautaro, co-founder and CEO of Nexvia. In this article I’ll tell you why it pays to look after the customer who comes back, and how we solved it with the Vendor ERP Loyalty Club.

$20,000per purchase, both customers. Neither spends more than the other per visit.
12 vs 36purchases a year: once a month against once every ten days.
3 times more$240,000 against $720,000 a year. The whole difference is frequency.

Why the one who comes back is worth more than a new one

Getting a new customer costs money. Advertising, promotions, the time it takes to explain everything, a first purchase that is often the only one. A 2014 Harvard Business Review article puts it this way: acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one, depending on the industry. The same article cites research by Frederick Reichheld of Bain & Company showing that increasing customer retention by 5% increases profits by 25% to 95%.

In a neighborhood store it’s even clearer. The customer who comes back already knows where everything is, doesn’t ask for prices, trusts what you recommend and, if they’re ever missing something, asks you to order it before looking elsewhere.

The problem is that nobody comes back “just because”. If there’s another store with similar prices two blocks away, the customer goes wherever is more convenient that day. A loyalty club gives them a reason to choose you.

What makes a member come back

A points club works because of three fairly simple things:

Reason 1They have something saved upEvery purchase adds up. Going elsewhere means leaving those points unused.
Reason 2Points expireIf they don't come back, they lose them. That puts a date on the next visit.
Reason 3They feel part of itThey have a member number and get treated differently. They're no longer just someone passing by.

And there’s a fourth one, for you: you know who they are. The customer who used to leave as an anonymous walk-in now has a name, a phone number and a purchase history. You know who your best customers are and which one stopped coming.

How the Vendor ERP Loyalty Club works

The Loyalty Club is a Vendor ERP module, so it works with the same sales you already ring up at the register. There’s no separate spreadsheet and no card to stamp by hand.

  1. The customer signs up with a QR codeYou print the club's QR code and leave it at the counter. The customer scans it, fills in their details and is signed up on the spot with their member number. The sign-up page carries your logo, your colors and the benefits you want to highlight.
  2. They buy and earn automaticallyWhen you issue the invoice or receipt in their name, Vendor credits the points with the rule you chose, for example 1 point for every $1,000.
  3. They redeem at checkoutWhen they want to use their points, the cashier enters them in the sale and they're taken off the total, based on the value you gave each point.
  4. Every so many purchases, a rewardYou can set a reward for every certain number of purchases. When the member reaches it, the system assigns it to their profile so you can hand it over.

A few more things you can set up:

  • When points expire. You choose the number of days and the system removes them on its own, every day.
  • What doesn’t earn. You can leave whole categories out of the club, for example cigarettes or phone top-ups, where the margin is too thin to give points away.
  • The minimum to redeem. So nobody uses 3 points to take $30 off.
  • The club’s name. It doesn’t have to be called “Loyalty Club”: it can carry your store’s name.

If you run a bar or restaurant with a QR menu on Vendor, diners can also join from their table and check their balance there. What they order at the table earns points when the bill is paid.

What you see

On the club’s dashboard you get how many members there are and how many are active, the points earned, redeemed and expired, the ten members with the most points and the trend over the last six months. From each member’s profile you see all their activity, and you can add or remove points by hand or assign a special reward.

What the club doesn’t do on its own

I’d rather you know this before you start:

  • It doesn't send messages. Today the club doesn't notify members by WhatsApp or email when they earn points, when their points expire or on their birthday.
  • You give the birthday reward. You can create a birthday reward and assign it from their profile, but the system doesn't hand it out on its own.
  • The member has to be on the sale. If the sale goes out as a walk-in customer at the register, it doesn't earn. At first it's worth agreeing on it with whoever is at the register: "are you a member?" before closing the receipt.

How to get started without overcomplicating it

Before turning the club on you need to decide three numbers, and it’s worth doing it with your margin in mind:

  1. How often a point is earned. For example, 1 point for every $1,000.
  2. How much a point is worth when redeemed. If it’s worth $10, with that rule you’re giving back 1% of what they buy. It’s little for you and enough for the member to notice.
  3. After how many days they expire. Long enough for them to save something up and short enough that they don’t forget. For a store people visit every week, 90 or 180 days usually works.

Then you print the QR code, put it where the person paying can see it and ask whoever runs the register to offer it. The first members are almost always your regulars, and that’s fine: they’re the ones most worth looking after.

Frequently asked questions

How does a customer join the club? They scan the club’s QR code, which you can print and leave at the counter, fill in their details and are signed up on the spot with their member number. You can also add them yourself from Vendor ERP by picking a customer you already have on file. In restaurants and bars with a QR menu, diners can join from their table.

Are points added automatically? Yes. When you issue the invoice or receipt in the member’s name, Vendor ERP credits the points according to the rule you set. The only step is choosing the member as the customer at checkout: if the sale goes out as a walk-in customer, it doesn’t earn points.

How does a member redeem points? At checkout. The cashier enters how many points they want to use and they’re taken off the purchase total, based on the value you gave each point and the minimum you set for redeeming.

Do points expire? Yes, if you want them to. You choose after how many days they expire and the system removes them on its own. Expiring points give members a reason to come back sooner.

Does the club send messages to members? No. Today the club doesn’t send notices by WhatsApp or email. Members see their number when they sign up and, in places with a QR menu, can check their balance from the table. Birthday or special rewards are assigned by you from the member’s profile.

The once-a-month customer already knows you, and a concrete reason to come back can turn them into the every-ten-days one. If you use Vendor ERP, we turn the Loyalty Club on in your account and set it up together with you. Let’s talk.