Points go to the actions worth paying for.
Each point is a discount you'll pay later, so every reward has a price. Take the example store our calculators use: a $100 order keeps $41.80 after product, shipping, payment fees and returns. If members earn 5% back on every order, each $100 order gives away $5 once the points are spent. That's about 12% of what the order keeps, which pays off on a second order you'd otherwise miss and is pure cost on one they'd have placed anyway.
So everyday points stay modest, and the bigger rewards go to actions that change what people do: a second order, a photo review, a friend who buys. Reward codes are also set to combine with your sale discounts only when you choose. Shopify lets one order carry up to five discount codes when each one allows it, so without that setting a Black Friday order can take the sale price and a points reward on top. VIP tiers are set where your real repeat customers can reach them, and they offer perks such as early sales or free shipping rather than deeper discounts. Actions that don't lead to a sale, like following you on social media, earn nothing.
- Points per dollar set from your margin
- The biggest rewards for second orders, photo reviews and referrals
- VIP tiers your repeat customers can actually reach