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Guiding principles for program configuration
Guiding principles for program configuration

best practices for configuring a rewards program

Maggie avatar
Written by Maggie
Updated over a week ago


When going through program configuration, try to put yourself in the shoes of your customer and consider the user experience. These guiding principles will help to formulate the ideal customer journey by rewarding customers at the right time and with the right rewards.

1. # of purchases to first reward

Make sure that a customer needs to purchase at least once, but no more than 3 times. Consider your customer purchase frequency and make the rewards attainable

Example: take your average order value (AOV) and multiply it by 5 points for every $1 spent rule. Does the customer now have enough points for the minimum available reward?

2. No redeeming without a customer purchase

Avoid a program setup that can give a member enough points to redeem a reward without placing an order. This encourages customers to stick with their existing store account rather than creating a new account each order to receive a discount

Example: Sign up points and social action rewards should equal less than the points required for the minimum available reward.

3. Percentage back in points to a customer

Our recommendation is to give between 3%-10% back in points value

Example: If a customer earns 5 points back for every $1 spent and they place an order for $100, they will earn 500 points ($100 * 5) equal to $5 in points value. This is the equivalent of 5% back in points value.

4. Percentage value of advocate and friend referral rewards

Between 10%-20% of the store average order value, rounded to the nearest $5.

Always try to consider the customer journey as you create your rewards program. In addition to the above principles, below are a few questions to keep in mind during set up:

Do I receive points for creating a store account?

How many points will I earn for an average order placed?

How soon can I spend my points on a reward? After 1 purchase, or 2?

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