This article explains how to set restrictions to points redemption.
Setting restrictions for points redemption allows you to control the minimum points required for redemption and the maximum discount customers can receive. By implementing these restrictions, you can fine-tune your loyalty program to balance customer rewards and business profitability.
Minimum points required for redemption
To initiate a redemption, customers must have a certain minimum number of points in their account. By configuring the minimum points before redemption, you can establish a threshold customers need to meet to redeem their points.
Keep in mind that the minimum points required should be set appropriately to align with your business goals and customer expectations.
Example: If you set the minimum points before redemption to 500 points, customers must have a minimum of 500 points in their account to make a redemption.
Maximum Discount per redemption
The maximum discount per redemption determines the highest discount a customer can avail themselves of when redeeming their points for a purchase. It ensures that discounts granted through points redemption are within acceptable limits.
When a customer wishes to purchase a product, the maximum discount restricts the percentage of the total price that can be covered by redeemed points.
Example: If a customer intends to buy a product worth $10 and they possess 1000 points, where 1000 points equal $10, setting the maximum discount per redemption to 50% will limit the customer to a redemption of 500 points, equivalent to a $5 discount.