Reward points are a way to drive additional orders from your existing customers. Just as airlines offer frequent flier miles to their customers to get them to keep on choosing them as their airline of choice, reward points are used as an incentive to get your customers to keep placing orders in your store.
With reward points, your customers can earn points for every order they place, or by referring new customers. Once your customer earns enough points, they will be able to either pay for your products using those reward points or automatically be issued a gift certificate based on the number of reward points earned.
note: This is typically used along with Gift Certificates. Click Here!
Enabling Rewards Points
- Go to Marketing→ Reward Points
- Set Reward Points to ON
- Several settings to configure your rewards points will appear such as:
- Minimum Redemption Amount - This is the minimum number of points required before any gift certificates are created for the customers. This can be any integer, including 0. For example, you may want to only issue gift certificates if a customer has a minimum of 100 points. If this was the case you would set the minimum redemption amount to 100. If you set this to 0, then there is no minimum redemption amount, and the gift certificate will be sent out automatically (once the script in the admin runs, once per day).
- Gift Certificate Delay - This dictates how many days after someone reaches the reward points minimum redemption amount that the gift certificate is generated. The customer will receive the gift certificate code via email. You can use any integer, including 0. If you have a return policy, you may want to set this according to that (for example, input 30 if your return policy is 30 days). This way you can be sure to remove any reward points from customers who return any items. Use 0 if you want no delay.
- Reward Points Payment System - You have two choices:
- Allow reward points to be converted to a gift certificate - All reward points will be turned into gift certificates based on the settings above.
- Allow customers to pay directly with reward points - This allows customers to use their reward points to pay for items on your site. No gift certificate will be generated if this option is selected and the settings above will be ignored.
- Earnings Conversion Rate - This determines how many reward points customers receive when placing orders. For example, if you set the rate to 3.00 (dollar amount), then you would get 1 point for every $3 dollar spent. If you set the rate to 10% (percentage amount), then you would get 10% of the subtotal amount in points. If you have customer groups enabled, then you can give each customer group a different conversion rate.
- Redemption Conversion Rate - This will determine what each reward point is worth. For example, if you have 'Every 1 points = 1 currency' and you are using US dollars, this means customers would receive $1 for every 1 reward points they have.
Mark Products as Eligible for Rewards Points
- Go to Inventory→ View or Manage Products → click on a Product Name → Advanced
- Make sure that Eligible for Reward Points is set to ON
- When done, Save.
Refer a Friend
- Go to Marketing→ Rewards Points → Refer a Friend Program
- Set Allow Customers to Refer Friends" to ON
- New options will appear such as:
- None - If you don't want to give the customer any points for the referral, enable this setting
- Reward Point Percentage Based on Points - The customer who referred a friend will get a percentage of the points that the friend earns when placing their order. For example, if Edna (the friend) places an order and receives 50 points and the Reward Percentage is set to 10%, John (the existing customer who referred Edna) will receive 5 points.
- Flat Amount of Reward Points - Regardless of how many points Edna (the referred friend) gets on her order, John (the existing customer who referred Edna) will get however many points you set as the Reward Amount.
- Only Give the Reward Once - By default, John will keep getting points each time Edna places an order. If you only want John to receive points for Edna's first order, enable this setting.