Redeeming Points

This article shows how you can create rewards for your customers.

Who can create rules for Point Redemption?

This feature is available for: All users.

Introduction

Hello there, valued users! We're thrilled to have you here. This segment of the user guide is dedicated to explaining how you, our esteemed customers, can redeem rewards in your Loyalty Program. We're about to embark on a journey to explore how to create customizable methods for your customers to redeem points for rewards. Our current points redemption programs include discount programs, free gift programs, and free shipping programs.

In this guide, we'll provide a step-by-step walkthrough to help you understand and implement these programs effectively. We're here to ensure you get the most out of our services, so sit back, relax, and let's get started!

Understanding the Rules

Before we dive into the details, let's take a moment to understand how these rules work:

Discount program: The discount program allows customers to use their accumulated points to receive a discount on their purchases. It's a fantastic way for them to enjoy savings while continuing to engage with your brand and its offerings.

Free gift program: The free gift program is a delightful way for customers to redeem their points for complimentary items or products. By offering free gifts, you're not just rewarding customers, but also encouraging them to stay loyal to your brand, enhancing their overall shopping experience.

Free shipping program: The free shipping program provides customers with the opportunity to redeem their points for free shipping on their orders. This perk not only adds value to their purchases but also encourages them to make additional transactions, thereby fostering stronger customer loyalty and retention.

Setting Up the Rules

Discount program

Creating programs that allow customers to redeem points for discounts is a breeze with our platform. We offer two types of discount programs: the amount discount program and the percentage discount program. Depending on your purpose and the value of the item, you can choose the appropriate discount program.

To create a discount program, simply click on 'discount program,' select 'add more,' then choose either 'discount amount' or 'discount percentage.

In today's market, customers are often bombarded with different offers: 20% off, $40 discount, or $12 cashback if you spend more than $120. But which type of discount works best: amount or percentage? $20 or 20% off? It all depends on the price of your product.

For products priced above $100, we recommend using a fixed amount discount (e.g., $X off). Conversely, for products priced below $100, a percentage discount (e.g., X% off) tends to be more effective.

Maintaining a cutoff of "100" for other currencies (e.g., €100, $100) helps determine what qualifies as high-priced (over 100) versus low-priced (under 100).

Research findings support this approach: higher-priced products are perceived as offering better value with a fixed amount discount, while lower-priced products are better received with a percentage discount.

For instance, in experiments:

When a jacket priced at 480 pesos received a discount of 120 pesos off (compared to 25% off), respondents perceived the offer as 12.4% better value and were 16.3% more likely to purchase.

Conversely, when balloons priced at 48 pesos were discounted by 25% (versus 12 pesos off), respondents perceived the offer as 7.8% better value and were 11.1% more likely to buy.

Discount amount

In general, using this type of rule, you allow customers to redeem their points and get a discount code whose value is decided by the admin. The discount code is automatically generated by the app and it can be used one time only by one customer.

After setting the condition correlating points with the corresponding discounted amount, you can choose which products this discount voucher applies to, whether it's all items in the store or specific ones. You can also set conditions regarding the validity period of the discount code after redemption.

Even though both are Discount amounts, there are two types of Redeem values: Fixed discount amount and dynamic discount amount, allowing you to choose the program that best suits your store.

Fixed Discount Amount: A fixed discount amount is a set monetary value deducted from the total purchase price when redeemed, offering simplicity and predictability.

For example, let's say you set a condition where customers need to accumulate 10,000 points to redeem a discount voucher worth $10. Customers will earn points and redeem this coupon, using it to deduct $10 from their total bill.

Dynamic Discount Amount: Dynamic Discount Amount is a flexible discount program that allows you to set specific point thresholds to redeem corresponding discount vouchers.

For example, if you set a threshold of 10,000 points to redeem a voucher worth $10, customers can redeem multiples of 10,000 points. If a customer has 40,000 points, they can redeem a voucher worth $40. You can customize the redemption thresholds as well as the maximum and minimum point ranges that customers can convert, creating a flexible program tailored to your store's needs.

Discount percentage

Customers will receive a certain X% discount code which can only be used once and is valid for only 1 customer.

Just like the discount amount, you can set the condition correlating points with the corresponding discount percentage. You can also choose which products this discount voucher applies to, whether it's all items in the store or specific ones. Similarly, you can set conditions regarding the validity period of the discount code after redemption. This gives you the flexibility to tailor the program to your store's unique needs.

Free gift

With the free gift program, customers will receive a discount as a coupon code for a particular product. It's a delightful surprise that not only rewards the customer but also promotes specific products in your store.

To set up a free gift program, you can select the 'free gift' option in the rewards section. You can then specify which products are available as free gifts and set the number of points required to redeem these gifts. This way, customers can easily see what they can get and how many points they need to earn their desired gift.

Free shipping

The free shipping program allows customers to receive a free shipping discount code for their orders. This is a great incentive that encourages customers to make more purchases, knowing that they won't have to worry about shipping costs.

Setting up a free shipping program is straightforward. Simply select the 'free shipping' option in the rewards section and set the number of points required to redeem the free shipping code. You can also specify which regions this offer applies to, allowing you to tailor the program to your shipping capabilities.

How to use Discount combinations?

There might be instances where you want to offer your customers the chance to stack different discounts together. You have the option to choose from eligible combinations that allow your customers to benefit from the best possible total discount based on their cart. You can set up both automatic discounts and discount codes to combine.

Each discount that you create belongs to one of the following categories, depending on what the discount applies to:

Order discount
Product discount
Shipping discount

When you decide to let a discount combine with other discounts, you choose which categories of discounts it can combine with. For instance, if you create a discount code for 10% off an order, you can choose to let that discount code be combined with Product discount codes as well.

Multiple order discounts, product discounts, and shipping discounts can all apply to the same order. You can learn more about how different discounts combine. In some situations, when there are active automatic discounts in your store, and a customer also uses one or more discount codes, the best discount or combination of discounts automatically applies to the customer's cart.

If a customer enters more than one discount code during checkout that can't be combined, they'll see this message: "Discount couldn't be used with your existing discounts."

Important note

The coupon code customers receive after redeeming their points is automatically created in your Shopify store. You will not need to create any code manually.

Conclusion

And there you have it! We've walked through the process of setting up and understanding the different types of rewards programs you can offer your customers. Remember, the key to a successful loyalty program is ensuring it's beneficial for both you and your customers. By offering enticing rewards like discounts, free gifts, and free shipping, you can motivate your customers to continue engaging with your brand and making purchases.

Thank you for choosing our platform, and we're excited to see how these programs will help your business grow. If you have any questions or need further assistance, please don't hesitate to reach out. We're here to help! Happy rewarding!