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You can create a cashback-style experience in Smile using points. Customers earn a percentage of their purchase back in points, which they can later redeem for discount rewards. These can be redeemed for dollar-off or percentage-off discount codes.

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How cashback-style rewards work in Smile

Cashback-style rewards work by giving customers points for every purchase. Those points can then be redeemed for discounts, creating the feeling of earning money back. Most merchants start with Smile’s default points value of 100 points = $1 discount. You can adjust this ratio anytime in your program settings, but it’s a simple, effective way to create a cashback-style experience. With this setup, customers earn points for every dollar they spend. Those points can later be redeemed for discounts — for example:
  • 5 points per $1 spent = about 5% back in points
  • 10 points per $1 spent = about 10% back in points
Customers can then use their points to redeem:
  • A $5 off discount (dollar-off reward), or
  • A 10% off discount code (percentage-off reward)
From a customer’s perspective, this feels like cashback — they earn value with every purchase and redeem it later for savings. However, these are store discounts, not cash payouts.

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How to set up cashback-style rewards

Follow these steps in Smile Admin to create a cashback-style experience:
  1. Set your earning rule: Decide how many points customers earn per dollar spent (for example, 5 points per $1).
  2. Create your reward options: Offer discount rewards that reflect the cashback experience — like $5 off, $10 off, or 10% off.
To create discount rewards, follow ➡️ Configure ways to redeem points Once your rewards are set up, customers will automatically earn points with every purchase and can redeem them for your chosen discount options.

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What customers experience

  1. Earn points: Customers earn points automatically with each purchase.
  2. Track progress: Their points balance grows in their Smile account. Customers can view their points balance in the Smile panel or account page depending on your plan and setup.
  3. Redeem rewards: When they reach the required amount, they can redeem points for a discount reward — such as $5 off or 10% off.
  4. Apply the discount: The reward is redeemed as a discount code to use on a future order.
This setup gives customers the feeling of earning cashback while keeping rewards easy to manage within your store.

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How this differs from true cashback

Here’s how Smile cashback-style rewards compare to traditional cashback:
FeatureTrue cashbackSmile cashback-style rewards
Payout typeReal money (credit or transfer)Points redeemed for discount code
Customer redemptionAutomatically credited to payment methodRedeemed manually for store discount
Example$5 credited to bank account$5 off or 10% off discount reward
PurposeDirect cash incentiveStore loyalty and repeat engagement
Smile’s cashback-style rewards simulate cashback but don’t issue real money. The value customers earn is redeemed through discounts, not transferred to a payment method or bank account.

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Tips for effective cashback-style rewards

  • Use clear naming: Label earning rules like “Earn 5% back in points” so the benefit is easy to understand.
  • Offer flexible rewards: Include both dollar-off and percentage-off rewards for different spend levels.
  • Encourage redemption: Remind customers to redeem their points regularly to stay engaged.