A loyalty program costs money: every point spent is a discount. The question is not “how generous can we be?” but “what reward brings customers back while keeping a healthy margin?”.
The basic formula
Real cost of the program = reward rate × share of points actually used.
With 1 point per euro and 100 points = 1 €, the reward rate is 1%. If customers end up using 60% of their points, the real cost is 0.6% of sales.
Three examples
| Store | Margin | Suggested rate | Setting |
|---|---|---|---|
| Electronics, accessories | Low | 1% | 1 point / €, 100 points = 1 € |
| Fashion, home | Medium | 2 to 3% | 2 or 3 points / €, 100 points = 1 € |
| Cosmetics, food, consumables | High, frequent orders | 3 to 5% | 5 points / €, 100 points = 1 € |
Bonuses that pay for themselves
- Welcome bonus (for example 100 points = 1 €): small, but it turns guests into accounts you can recognise.
- Review bonus (for example 50 points): reviews increase conversion for every future visitor.
Protect the margin
- Earn points on what customers really paid: after discounts, without tax and shipping.
- Do not earn points on the part paid with points.
- Set a minimum to use points and a maximum share of the cart.
- Give points when the order is completed, not when it is placed.
Make it visible
A program nobody sees costs nothing and brings nothing. Show the points on product pages and in the cart.
Pointly follows these rules by default and lets you change every rate. See the customer account view on the demo and read the complete loyalty program guide.
Frequently asked questions
What is a good loyalty reward rate?
Between 1% and 5% of the amount spent, depending on your margin and how often customers buy.
Should points expire?
Not necessarily; a minimum to use them and a cap per order already protect your margin.
Do points apply to shipping?
It is best to give points on products only, after discounts.