How to configure earning and spending rules in Mageplaza Reward Points

Converting a visitor into a customer takes lots of efforts, but retaining them is even harder. Stores start to encourage customer loyalty via loyalty programs, but how to make yours stand out, and how to flexibly set different earning and spending rules?

With new features released, let’s discover how to configure earning and spending rules in Reward Points for your Magento 2 store as well as learn more about other available reward types and mistakes to avoid.

Related posts:

• 3 case studies of outstanding reward programs
• 10 reward programs worth learning
• Drive customer loyalty with the app experience
• Build an effective loyalty program

Table of Contents

• How to manage Reward Points in Magento 2?
  • How to configure reward point earning rules?
    • General earning configuration
    • Sales Earning Process
  • How to manage reward point earnings by behaviour conditions?
    • Behaviour conditions
    • Actions
  • How to configure the spending rules?
• Types of reward programs
  • Point-based loyalty programs
  • Tiered loyalty programs
  • Paid loyalty programs
  • Value loyalty programs
  • Hybrid loyalty programs
• Mistakes to avoid
• Mageplaza Reward Points’ Highlight Features
• The bottom line

How to manage reward points in Magento 2?

To view the detailed settings guidance on the Reward Points extension, please follow our user guide.

How to configure reward point earning rules?

General earning configuration

After setting up essential information of the module, you can start configuring these earning rules:

• Rounding Method field: There are 3 options for rounding
  • Normal: The number of points after being converted from the currency, will be rounded in normal rule. For example: 5.2 rounded to 5; 5.8 rounded to 6.
  • Rounding Up: The points will be rounded up. For example: 5.2 or 5.8 is rounded to 6.
  • Rounding Down: The points will be rounded down. For example: 5.2 or 5.8 is rounded to 5.
• Points Earning From Tax: Select Yes to convert the tax to earning point(s)
• Earn points from shipping fee: Select Yes to convert the Shipping Fee to point(s).
• Point Refund field: Select Yes to minus the points when customer refunds the order.
• Earning Points from Orders with Spent Points (New): Select Yes to allow customers to earn points from orders that they have used points.
• Notify reward points for guests: Select Yes to notify customers of reward points when they are signing in as guests.
  • Message: Show messages to customers on the front end.

Sales Earning Process

• Earning Points after Invoice created: If Yes, the point(s) are immediately added to the customer’s account after the invoice is created. If No, the order has to be completed first, then the point(s) will be added.
• Points Expired After: Set the expiration day of point(s), counting from the day point(s) is (are) added. If left blank, there is no expiration.

How to manage reward points by behaviour conditions?

When using the Ultimate version, you can configure reward points earnings by customer behaviour.

Behaviour conditions

The actions/events that customers can earn points from include:

• Create a new account: The customers receive the point when they register the account

• Sign up for a newsletter: After customers subscribe to your newsletter, they can earn points. However, this is only one-time action, so if they cancel and register again, there will be no point added.

• Write a review: After the review they left for the product is approved, they can receive points. There might be additional requirements of the review, such as word count, verified purchase, or minimum value paid orders.

• Send email to friends: Give points to customers when they refer friends via email

• Customer’s birthday: Give points on the customer’s birthday. Admins are free to set the notification, the sender and the email template.

• Like a page with Facebook: Give points when customers like a page using their Facebook account. To avoid spams, admins can set minimum interval between likes.

• Tweet a page with Twitter: This is similar to Like a page with Facebook, but the action is to tweet the page on Twitter

• Share a purchase on Facebook: After customers place order and share the products in the order on Facebook or Twitter, they can get the points. Admins need the App ID for the Facebook to let the rule work well

• Get X Points after Y days of Inactivity: You can persuade customers to go back to your store by rewarding them points after a certain days they are inactive

• Points Allocation: You can give points to customers frequently from the start day (configured on the Actions tab)

• Lifetime Amount (New): After spending a certain Invoice Amount, customers can earn points.

Actions

• For the actions as Create a new account, Send email to friends, Sign up for a newsletter, Customer birthday, admins only need to set the point amount that customers receive after completing each action.

• Expire After: Select the point expiration date. If left empty, the points can be used in a lifetime.

• For other actions, admins can limit points that customers receive in a given time period (per day, per month, per year or lifetime).

How to configure the spending rules?

• Discount Label: Enter the information you want to display on the frontend.
• Minimum balance to Spend Points:
  • Customers must have this minimum number of point(s) to start spending points on discounting orders.
  • In case they do not meet this requirement, the Reward Points slider will not be shown on the View Page or Checkout Page.
  • If left blank or 0, there is no minimum point.
• Type Maximum Spending Points per Order:
  • Type Maximum Spending Points per Order = Fixed: Customers can only use a fixed number of points per order
  • Type Maximum Spending Points per Order = Percent: Customers can only spend the number of points as a percentage of the total shopping cart value
• Maximum spending points per order:
  • Set the maximum points allowed per order
  • If left blank or 0, customers can spend unlimited points (either it is the maximum points they ave, or the maximum points converted by SubTotal of Cart).
• Points Spending From Tax: Select Yes to allow customers to use points for tax discount.
• Spending Points on Shipping: Select Yes to allow customers to use points for shipping cost.
• Restore spent points after order refunding: If Yes, in case customers return their orders and get refunds, the spent points will be restored.
• Use Max Point By Default: If Yes, customers can spend points at the maximum level.

To configure shopping cart spending rule, please find Ultimate version user guide

View the full user guide

Types of reward programs

Point-based loyalty programs

The most popular and straightforward reward scheme is based on points. Customers need to earn points via purchases or other behaviours. All of the actions can be converted into points, and they can use those points to pay for future orders or exchange points for gifts.

The entry barrier is low, as these programs are free to join. However, it is also possible for shoppers to abandon their loyalty points if it takes them too long to earn and redeem.

Tiered loyalty programs

This reward program type offers customers different rewards for each milestone. A milestone completed means more exclusive benefits.

As tiered loyalty programs focus on exclusivity and take advantage of gamification, they can easily persuade customers to spend more to reach the milestone.

Paid loyalty programs

Customers pay a participation fee to join loyalty programs and get benefits from the program.

Even though the entry barrier is high, this is chosen as the benefits will be more than what they have to pay for. However, to ensure that customers are eager to join your scheme, you need to offer rewarding benefits.

Value loyalty programs

When a business commits to use a part of the revenue to give back to communities, customers connect with the brand via the value they follow.

In this type, customers do not directly receive any benefits from the brand; however, both the customers and the business share the same goal. It requires businesses to define their values clearly before connecting with customers in such a deep level.

Hybrid loyalty programs

Combining two or more types of above-mentioned loyalty schemes is called hybrid. This could be considered as a way to overcome existing barriers and drawbacks of each reward program type. For example, one popular method is using both point-based and tier-based programs.

View actual Magento 2 case studies

Mistakes to avoid

• Points do not equal value: Either it takes shoppers too long to earn points, or the rewards they receive do not make up to their spending, they will be likely to stop coming back.
• Unclear policy: When shoppers can’t understand how they can earn points and spend their points, what’s the point of continuing with your store? Make it as simple as you can, and visualize those policies so that customers can easily grasp your idea.
• Same benefits for different loyalty levels: If being treated the same, your customers are not keen on upgrading their loyalty levels anymore. Therefore, try hybrid loyalty campaigns, as you can offer both point-based and tier-based rewards.
• Irrelevant prizes: Imagine being a man and receive a prize of a makeup brush set. How much is the chance that he marks it as spam?
• No program promotion: What is worse than customers do not even know about your loyalty scheme to join? Don’t spend too much efforts in setting up program rules that forget about promoting the program properly.

Mageplaza Reward Points’ Highlight Features

Magento 2 Reward points extension simplifies the affiliate programs management:

• Reward Points for purchases: Allow customers to earn points bassed on the purchase value.
• Reward Points for behaviours: Allow customers to earn points when they complete certain actions.
• Points spending slider: Improve UX via the interactive slider when it comes to selecting how many points to spend.
• Sell by points: Set the price of an item in points to enable purchases using reward points.
• Track the program efficiency via reports: The module is compatible with Mageplaza Reports extension.

The bottom line

Of course, keeping your customers with you requires more than just good products and dedicated customer support. Reward Points extension by Mageplaza assists you in building a rewards program that converts. This module is suitable if you you want to use the point-based type. If you prefer other reward program types, try our Loyalty Program and Milestone extension. To view the detailed guidance, please refer to our full user guide, or contact us for more support. More updates are coming, stay tuned!