Configuring Earn and Redemption Rules
Norma Cooper avatar
Written by Norma Cooper
Updated over a week ago

Loyalty programs are a fantastic way to reward your customers and encourage them to engage more with your brand. In this article, we will walk you through the various rules you can configure for your loyalty program.

In this article, you’ll learn about:

  • Earning Rules

  • Redemption Rules

  • Optional restrictions for redemptions

  • The impact of VIP Tiers on earn and redemption rules

Earning Rules

1. Join Program

With this rule, customers can earn reward currency (in most instances, merchants opt to call these ‘points’), simply by joining a loyalty program. To join, customers follow the sign-up instructions and when prompted, click on ‘Join & Agree’ in the Floating Widget or Loyalty Page.

Configurable Options

  • Specify the reward currency earned, when customers carry out this action.

    • Reward currency amounts can be changed at any time. If changed, this will apply to new sign-ups, from that point on.

  • The reward currency can only be earned once per sign-up.

2. Place an Order

With this rule, customers earn reward currency based on every dollar spent. For instance, earn 1 point for each $1 spent.

Configurable Options

  • Specify the reward currency earned, for each store currency spent.

  • Specify the number of times this rule can be used in a given time frame.

  • Set a wait time before the reward currency amount are awarded. This can be beneficial for the following reasons:

  1. Setting a delay can act as a fraud deterrent. For example, it means that a customer cannot be awarded reward currency, convert them to coupons and then initiate a refund. We recommend aligning the time delay with the store’s return policy.

  2. It may also be easier to view one net transaction, within their transaction log, rather than reward currency coming in and then going out.

Handling Refunds (caused due to cancellations or returns)

In the case of full refunds:

  • Any reward currency earned, is fully revoked

  • Any rewards used are fully returned

In the case of partial refunds of an order:

  • Reward currency earned on orders, that are then partially refunded, is proportionately reduced, based on the relative value of returned items.

  • Rewards used on orders are not automatically returned

An example of how reward currency is redacted for partial refunds is as follows:

Order made with $6 discount coupon applied

Order

Discount Coupon

Reward Currency

Product 1 = $10, Product 2 = $20

Value of discount used = $6

$1: 1 point

Order value = $30

Order value after discount used = $24

Points awarded for order = 24

Product 1 returned

Value of returned items = $10

(equal to $30 x 33%)

Value of discount associated with returned items = $2

(equal to $6 x 33%)

Points associated with returned items = 8 points

Value of returned items after discounts = $10 - $2 = $8

Points awarded for order after returned items = 24 - 8 = 16 points

3. Write a Review

Reward customers for leaving product reviews on your store. Extra reward currency can be awarded for using a social login or providing additional User-Generated Content (UGC), such as photos and video.

Configurable Options

  • Specify the reward currency earned by submitting a review, using social login and for adding images and video to the review.

  • Set a maximum reward currency amount that can be earned per order. This places a cap on orders that include multiple products.

  • Define whether reward currency can be awarded once per order or review. This is helpful to encourage customers to leave reviews on all products bought.

4. Like on Facebook

Members earn reward currency by accessing and liking your Facebook store page, via the Loyalty Page or Floating Widget.

Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Limit the number of times this rule can be earned in a period of time.

  • Preview the page that members will be redirected to, on Facebook.

5. Share on Facebook

Members earn reward currency by accessing and sharing your Facebook store page, via the Loyalty Page or Floating Widget.

Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Limit the number of times this rule can be earned in a period of time.

  • Preview the page that members will be redirected to, on Facebook.

6. Follow on Instagram

Reward currency is earned when members follow a merchant’s Instagram profile via the Loyalty Page or Floating Widget.

Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Set a limit on how many times this rule can be used in a period of time.

  • Preview the page that members will be redirected to, on Instagram.

7. Follow on Twitter

Reward currency is given to members who follow your Twitter profile via the Loyalty Page or Floating Widget.

Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Limit the number of times this rule can be earned in a period of time.

  • Preview the page that members will be redirected to, on Twitter.

8. Post on Twitter

Reward currency is earned when members post a link to your store on Twitter via the Loyalty Page or Floating Widget. You can provide suggested Tweet Text for members to use.

​​Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Limit how many times this rule can be earned in a period of time.

  • Preview your Twitter post.

9. Follow on Tiktok

Members earn reward currency by visiting and following a merchant's Tiktok profile, via the Loyalty Page or Floating Widget.

​​Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

  • Limit how many times this rule can be earned in a period of time.

  • Preview the page that members will be redirected to, on Tiktok.

10. Birthday

Members earn reward currency, each year upon their birthday.

​​Configurable Options

  • Specify the reward currency earned, when this action is carried out by members.

​​Member Experience

Members are asked to enter the day and month of their birthday.

Once saved, the reward currency amount (as defined by the rule) will be awarded to the member, on their birthday, each year.

Members can change their birthday; in case they enter it in error.

⚠️ Things to note

  • This earn rule has safeguards to ensure it cannot be gamed by members moving their birthday. Essentially, the rule can only be earned (at a minimum) once every 12 months.

  • If a member's birthday falls on February 29 (in a leap year), Okendo Loyalty will still try to allocate reward currency to the member, each year (on the next closest day - March 1).

Redemption Rules

1. Fixed Value Coupon

This rule allows members to redeem fixed-value coupons. For example, 100 points can be redeemed for a $10 discount coupon. Merchants can create multiple fixed-value coupons (eg $5 off for 50 points, $10 off for 100 points, $20 for 200 points etc) for their members. Fixed Value Coupons provide merchants with some certainty about the real value of discounts given (ie a $5 off coupon will always provide a known discount value to the merchant).

Configurable Options

  • Specify the fixed amount and reward currency required to redeem the reward.

2. Fixed Percentage Coupon

Similar to fixed-value coupons, members can use reward currency to redeem fixed percentage coupons, such as 100 points for 10% off. Merchants can create multiple percentage coupons (5% off for $50 points, 10% off for 100 points) for their members. A merchant may want to use this coupon type, as they can easily factor discounts into their product margins.

Configurable Options

  • Specify the fixed percentage and reward currency required to redeem the reward.

3. Convert Your Points

This rule allows members to use their reward currency to redeem coupons of variable value. Merchants set the $/reward currency ratio and then members can choose their discount value, such as 800 points for an $80 coupon or 400 points for a $40 coupon. Merchants may want to provide this rule, to give members control over the size of their reward values.

Configurable Options

  • Specify the reward currency to fixed amount discount ratio. Members can redeem a variable coupon value, based on this ratio.

  • Add minimum and maximum reward currency values, that can be used in any one redemption.

  • Add a minimum purchase amount, that the coupon can be used against. The coupon cannot be used against purchases with a value less than the minimum purchase amount.

⚠️ Things to note

Minimum purchase amounts scale with the reward currency converted. For example:

  • For example, assume a reward is set up at 100 points for $10 ratio, and a minimum purchase amount of $25.

  • If a member chooses to use 200 points for a $20 coupon, then the minimum purchase amount for that coupon is $50.

4. Free Shipping

This rule allows members to redeem for free shipping, up to a maximum shipping amount.

Configurable Options

  • Set a reward currency value to get free shipping, up to a maximum eligible shipping amount (i.e., the highest cost of shipping that can be claimed for free, by this coupon).

5. Free Product

This rule allows members to use reward currency to redeem a free product, as specified by the merchant.

Configurable Options

  • Set the reward currency value to redeem the product.

  • Select a product from the products list to offer as part of the reward.

    • If the product has variants, select the variant(s) applicable to the reward

What happens when members redeem a free product with more than one variant?

Often, merchants will have products with different variants. Variants can be based on size (e.g. S, M, L XL, 2XL), color or event style or even weight.

When a customer redeems a free product with more than one variant available, they will be asked to complete an extra step.

When applying the Free Product coupon (with variants) to their cart, they will be asked to select a variant.

Members will be taken to the product page, where they can select their variant and then 'Add to cart'.

The product variant is then added to the cart, with the appropriate discount applied, effectively rendering that product free.

What happens if the member tries to redeem more than one free product reward, at a time?

In some cases, a merchant may make more than one free product reward (e.g. a hair and beauty merchant may implement a free lipstick reward and a free eyeliner reward). When a member tries to claim these rewards and apply each of them to their cart, only the last reward applied will be applicable.

Using the example above, a member claimed the following rewards:

  1. Free lipstick reward ($10 MRP) = 50 points

  2. Free eyeliner reward ($15 MRP) = 75points

They then applied the eyeliner reward to their cart:

1 x eyeliner = FREE

Then they applied the lipstick reward to their cart:

1 x eyeliner = $15

1 x lipstick = FREE

Notice when the free lipstick reward is added to the cart, the eyeliner (added to the cart as part of the previous free product reward) is now charged. It is important to note, that since the free eyeliner coupon was cancelled by the free lipstick coupon, then it is still available for the member to use on a future purchase.

What happens if the member tries to redeem a free product that is out of stock?

The member experience will vary, depending on whether a product variant is out of stock (while other variants are in stock) or if the product has no variants and is out of stock.

If a product variant is out of stock, while other variants are in stock, the member will still be taken to the product page, but they will need to select another product variant.

If the product has no variants and is out of stock, the member will still be taken to the product page. Upon their next checkout, Shopify will remove the coupon for the out-of-stock product and allow the member to continue through the checkout.

Optional restrictions for redemptions

  • Merchants can set a coupon expiry limit in days (that commences from the day the coupon is redeemed). Coupons that have expired cannot be used on orders.

  • Merchants can set a minimum purchase amount (in the store's currency) per order before the coupon can be used.

  • For most rules, merchants can restrict coupon usage to one or more collections. This means that the coupon will only be applied to products from these collections on an order. If the order does not have products from the collections specified on the coupon, then it cannot be used.

The impact of VIP Tiers on earn and redemption rules

If VIP Tiers are enabled, merchants have options to:

  • Select rules applicable to each tier

  • Adjust reward currency earned or redemption values per tier (either by specifying a new value per tier or multiplying base tier values for each tier)

Simply open 'Available on Tiers' section, per rule and adjust.

⚠️ Things to note

  • The ability to adjust reward currency earned or redemption values per tier, does not apply to the Join Program earn rule.

  • Merchants can enter a specific value for a tier and a multiple of base tier values for other tiers, within the same rule.

  • Merchants must use whole numbers, when adjusting points earned or redemption values per tier.

Icons

Icons can be selected to display for Earn Points, Redeem Rewards and VIP Tiers. These can be selected from an icon library (by selecting the avatar against the rule and choosing an icon from the library) or uploaded into Okendo, as per below:

If you have any specific questions or need further assistance, feel free to reach out to our support team.

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