Frequently Asked Questions
1. What is Loxal?
Loxal is a free loyalty program platform that allows you to create a customized loyalty program in a matter of minutes. While there are many benefits to loyalty programs including increasing customer satisfaction, improving average customer spend, and providing rich customer data, these are costly and complicated to manage for small local merchants. Loxal allows you to easily implement a robust loyalty program platform and compete head-to-head against national franchises. Never fear, Loxal is here.
2. How can Loxal help my store?
Loxal’s main goal is to help you create more loyal and valuable customers. Our platform enables you to:
- Increase frequency of visits and average customer spend
- Reward your most loyal and valued customers, and attract fringe clients
- Obtain a wealth of data on your store’s customer base and their spending habits
- Contact your customers directly with special offers and promotions
3. What are the responsibilities for merchants?
Once you sign up as a Loxal Merchant and create your loyalty program, we ask that you take some basic steps to ensure that your loyalty program is a success. These include:
- Inform your salespeople / cashiers about the new loyalty program and how it works. We have a short 2 minute video that quickly explains the Loxal loyalty platform and what you’ll need to do.
- Honor all valid Loxal coupons presented at your store by Loxal customers.
- Display the Loxal decal on your storefront, as well as share Loxal information with customers. Don’t worry, we’ll give you all the material you’ll need to keep your customers happy and coming back.
4. Does Loxal cost anything? What’s the catch?
Loxal is completely free during our beta version, so hurry up! There is no catch. You will have access to our fully featured loyalty platform (including customer analytics) for $0 (FREE)! This will give you months to take Loxal out for a spin at no cost whatsoever.
5. What do I get for giving rewards to my customers using Loxal?
Rewards will entice your customers to come back again and again. Increased sales volume will drive more revenues to your store, and provide you with valuable data on your most valuable customers (accessible through the Loxal Analytics Suite). Most importantly, Loxal is so easy to use you’ll just sit back and relax.
6. How can I customize my loyalty program?
Since merchants come in different types and sizes, we let you fully customize your loyalty program to best suit the needs of your store and customers. There are two key levers that let you customize the program:
A. Reward Rate: This determines the rate at which you give customers points for their purchases. Every point is equal to one cent ($0.01). This means that a 10% reward rate will give your customers 10 points for every dollar ($1) spent at your store. While having a higher reward rate can be more costly, it will also motivate more customers to participate in your program and spend even more at your store.
B. Rewards Available: You decide how to reward customers. This includes gift certificates, discounts, free goodies, or any custom reward that you can imagine (only valid at your store). You can even use your rewards to push new or interesting products. We encourage merchants to have rewards at different point levels in order to encourage customers to keep earning points towards cooler rewards.
7. Is there a minimum required rewards rate I need to give my loyal customers?
In order to provide a great and reliable experience to your customers, we ask that all merchants give at least a 5% rewards rate to their loyal customers. This means that for every $1 dollar they spend, you will award 5 points to your customer. This is the equivalent of a “buy 20 get 1 free” punch card. We recommend using a minimum 10% rewards rate (buy 10 get 1 free equivalent) since research shows that this increases customer participation and loyalty dramatically.
8. Is my rewards rate fixed? How can I change the rewards rate and how often can I change it?
Your reward rate should be greater than 5% and is subject to how much you are willing to reward your customers. The rewards rate can be modified over time by sending a request to Loxal’s technical support. However, we recommend that you not change the rewards rate often so as to provide a consistent loyalty program for your customers.
9. How do I trust the data (points allocated to customers)? How accurate is the tracking?
We obtain transaction data using advanced financial account aggregation technology to track consumer spending across a vast number of banks. We then use a proprietary system (to be more specific: a sophisticated multi-string pattern matching algorithm with dynamic-step validation) to accurately match and allocate consumer spending to your business. This is state of the art technology that monitors every point that is matched to your loyalty program.
10. What type of data can merchants receive from Loxal?
The Loxal Analytics Suite is a very robust (yet incredibly easy to use) reporting tool that allows you to see the trends of your aggregate customer spending data. The main information you have access to includes:
- Customer demographics (age, gender)
- Shopper geography (by zip code)
- Frequency of purchases
- Percent of repeat customers
- Average customer spending
- Time between customer purchases
11. Can I get individual information on my customers?
Nope. We are all consumers and we know how sensitive this information can be, so customer identity will never be revealed. Merchants will only be able to see data, and communicate with customers, at an aggregate (anonymous) level. Don’t worry though; this is still incredibly powerful information that will help take your store’s success to another level.
12. How can I communicate with my customers? How often can I send them messages?
By using your “StuffBox”, you’ll be able to send coupons with offers/discounts to customers once a month. Messages will be limited to 140 characters so make sure you use the space wisely! We are working on different ways to increase communication with customers, but we really don’t like spam (does anyone?).
13. Do you sell our data to competitors?
Never. We will protect your information at all costs. Data is stored securely in a separate database with multi-layered hardware and software encryption. You will have sole access to your information. Please see our security page for more details.
14. Can I terminate my Loxal Loyalty Program at anytime?
If you are not entirely satisfied, or enjoying the benefits of being a Loxal merchant, you can terminate your program whenever you’d like. We ask that you give us a one-month notice so that we don’t leave any unhappy customers out there.
15. How do you identify fraud in e-coupon redemption?
An e-coupon can be redeemed using smartphones. Once redeemed, the coupon expires immediately and the data gets stored on our servers. We ask for your cooperation making sure e-coupons get used (the customer must hit “use” on the smartphone, and show the confirmation page to your staff).