Understanding the points program

Prasant Rai

Written by Prasant Rai
Updated

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Would you like to turn first-time buyers into loyal, repeat customers? The RewardsWP points program rewards customers with points for shopping, signing up, and engaging with your store. Customers then spend those points on rewards they care about.

In this guide, we’ll walk you through how the points program works, from earning points to redeeming them.

Before you get started, make sure RewardsWP is installed and activated on your WordPress site, along with WooCommerce or Easy Digital Downloads.

How Do Points Work?

The points program is a loyalty system built into RewardsWP. As customers shop, sign up, and engage with your store, they earn points that add up in their account. Later, they redeem those points for rewards such as discounts or free shipping.

RewardsWP handles the work for you. It awards, tracks, redeems, and expires points automatically. The program keeps running while you focus on your business.

Every point in RewardsWP has the same fixed value. This means you and your customers always know what points are worth:

  • one point: $0.01
  • 100 points: $1.00
  • 500 points: $5.00
  • 1,000 points: $10.00

The ratio is always 100 points per $1, with no changing values or hidden conversions. Instead of changing what a point is worth, you control how generous your program feels by setting how quickly customers earn points.

For example, if customers earn five points per $1 spent, they get five percent back in rewards. At ten points per $1, they get ten percent back. Because the point value stays fixed, you can adjust earning rates without confusing customers or making your reward costs hard to predict.

Next, see how a points program brings customers back.

Why Use a Points Program?

A points program gives customers a reason to come back. Each purchase earns points. Each reward encourages the next purchase.

With the RewardsWP points program, you can:

  • Encourage repeat purchases by giving customers something to work toward.
  • Increase customer lifetime value through ongoing engagement.
  • Reduce cart abandonment by offering rewards customers can redeem.
  • Build brand loyalty by rewarding the actions that matter to you.
  • Stand out from competitors with a built-in rewards experience.

Customers see their points balance and available rewards. This keeps your store in mind long after checkout.

Next, see which actions earn points.

Earning Points

Customers earn points by completing actions you choose to reward. You set these up in Ways to Earn.

From your WordPress admin sidebar, go to RewardsWP » Settings. Then, click the Points tab.

RewardsWP Settings page with the RewardsWP admin menu inset and an arrow pointing at the Points tab

Common earning actions include:

  • Make a purchase: points based on the order’s value.
  • Create an account: a one-time bonus for signing up.
  • Write a product review: points once the review is approved. Customers write the review in the rewards widget or on the product page. Customers earn the same points for any honest review, good or bad. On Easy Digital Downloads, reviews in the rewards widget need the EDD Reviews extension.
  • First order bonus: extra points for a new customer’s first order.

For each action, you choose whether it’s turned on and how many points it awards. This lets you reward the behavior that matters most to your business.

If you reward product reviews, disclose that reviewers earn points. Show the disclosure near your product reviews and average rating.

For the rule, read the FTC’s consumer reviews and testimonials rule Q and A. This is not legal advice.

To change how purchases earn points, click Edit on Make a purchase.

Ways to Earn section listing earning actions, with an arrow pointing at the Edit button for Make a purchase

The settings open in a drawer. When you finish, click Done. Then save your changes from the save bar.

To learn more, read Earning points from purchases, Earning points from signups, reviews, and first orders, and Earning points from product reviews.

Redeeming Points for Rewards

Once customers have enough points, they exchange them for rewards you set up in Ways to Redeem, on the same Points tab. Rewards can include:

  • Fixed discounts, such as $5 or $10 off.
  • Percentage discounts, such as ten percent or 15% off.
  • Free products from your store.
  • Free shipping on eligible orders, with WooCommerce only.

For each reward, you decide how many points it costs and when it expires. Free product rewards can also have a minimum spend. This flexibility lets you match rewards to your margins and marketing goals.

To change a reward, click Edit on it.

Ways to Redeem section listing four rewards, with an arrow pointing at the Edit button for the $10 off coupon

You can also choose which items count. Applies to sets which items a dollar or percentage off reward discounts. Earns on sets which items earn points from Make a purchase.

For example, you can keep gift cards out of both.

See Excluding products from rewards and points.

Redeeming is quick for customers. They choose a reward, apply it, and keep shopping.

For every reward type, read Choosing reward types.

Tracking Balances and Points History

Each customer has their own points balance. Customers see it in the rewards widget on your storefront.

The widget also lists their available rewards, with links to Ways to earn and Ways to redeem. Customers track their progress there and see how close they are to their next reward.

The rewards widget home panel showing a customer's points balance, their available rewards, and links to Ways to earn and Ways to redeem

When customers can see their points grow, they’re more likely to return and buy again.

For a tour of the widget, read Understanding the rewards widget.

The balance updates automatically. It goes up when a customer earns points. It goes down when they spend points, when points expire, or when a refund takes points back.

RewardsWP also records every change in a points history log. The log includes:

  • Points earned from purchases or engagement.
  • Points spent on rewards.
  • Points that expired.
  • Points taken back for refunds or adjustments.

This history explains every balance change, for you and for your customers.

To see what each points status means, read Understanding points statuses.

Letting Points Expire

You can choose to have points expire after a set period. Expiring points give customers a reason to come back. They also help you control how many unspent points build up over time.

When expiration is turned on, customers get an email before their points expire, reminding them to return and redeem a reward. RewardsWP removes expired points automatically. With expiration off, points never expire.

To set it up, read Configure points expiration.

Who Can Earn Points?

The Program Participants setting on the General tab of RewardsWP » Settings decides who takes part:

  • All customers: members and guests: guests take part too. Before they can redeem points for rewards, they create an account. Your store also needs guest checkout turned on.
  • Members only: customers with a WordPress account: customers create an account before they can take part.

If you’re not sure which to pick, start with All customers: members and guests. The setting marks it as recommended.

It lets customers who check out as guests earn points too. More of your shoppers take part.

Program Participants setting with All customers: members and guests (recommended) selected, and Members only: customers with a WordPress account

Existing customers start earning points as soon as the program is turned on. You can also welcome new customers with a signup bonus. The bonus gives them a reason to create an account.

To learn how guests take part, read Guest participation.

Getting Started with the Points Program

Launching your points program takes a few steps:

  1. First, choose how customers earn points by turning on earning actions and setting their point values.
  2. Next, choose how customers redeem points by creating rewards and setting their point costs.
  3. Optionally, rename your points currency to match your store’s tone and style. See Customize points currency name (branding).
  4. Finally, turn on the program to make it available to customers.

From then on, RewardsWP awards, tracks, and redeems points automatically.

For step-by-step instructions, read Enable or disable the points program.

That’s it! You know how customers earn, redeem, and track points in RewardsWP, and how expiration brings them back. Next, to set up your first earning action, read Earning points from purchases.

FAQ

Below, we’ve answered some of the most common questions about the points program.

How much is a point worth to my customers?

Every point is worth $0.01. So 100 points always equal $1. To make your program more or less generous, change how many points each action awards and how many points each reward costs. See the How Do Points Work? section above for examples.

What happens to points when I refund an order?

RewardsWP takes back the points the refunded items earned. A partial refund takes back only the points those order lines earned. A refunded item that earned nothing takes nothing back.

Can my customers’ balances go below zero?

Yes. If a refund takes back points the customer already spent, their balance goes negative.

The negative balance shows in the rewards widget and the Members list. The customer can redeem again once they earn the points back.

See Managing members.

Still stuck? Submit a ticket and the team that builds it will help.

RewardsWP

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