Redemption rate
How does the Liana redemption system works? What are its limitations?
The redemption rate is the conversion rate used to compute the value of the points your customers have accumulated.
The default redemption rate is: 100 points can be redeemed in exchange for 1 unit of your store's currency. If your store currency is USD, it means that for every 100 points customers accumulate, they will get a $1 discount. A customer that has 700 points will get a $7 discount and so on.
The default redemption rate is the best rate to, psychologically, maximize customers' engagement in your rewards program. When a customer has 3,700 points it is very easy for them to understand how much benefit they get when you set a redemption rate of 100 points to $1 instead of 250 points to $1.
It is not currently possible to change the redemption rate, but you can set the maximum discount a customer can get while redeeming and limit the redemption against selected products.
The default redemption rate of 100 points to $1 makes it easier for both the merchant and the shopper to compute the value of points. For example, if you give the customer 5 points for each dollar spent, this would be equivalent to 5% cashback. So it makes it easier to resonate in terms of percentage. It is worth noting that in the Beans system, points can only be integers, so you cannot give a decimal amount of points. So the default rate gives you the best granularity. 1 point is worth ¢1 (one cent).
This is a frequent question that we get often from merchants. This is in fact a very bad idea. Since in the Beans system points can only have integers value, this would mean that if you are giving your customers 1 point per dollar spent, they will get 100% cashback. Better list your products for free.
In some currencies, product prices are already in the thousands. And the default rate of 100 points to 1 unit of currency makes it possible for the customer to have a large digit amount of points, for example, millions or billions of points. While this is not a technical limitation, it can limit the customer experience and cause display overflow in some places. The Beans team is aware of this issue and is working on solutions.
At this stage, our team is exploring solutions to make Beans even more accessible to more merchants especially those who are having to work with an "inflated currency". There is a feature request on our roadmap about it. We encourage you to upvote and contribute by sharing your use case.
Last modified 1yr ago