One Point = $1

Description

For every points the customer spends, the customer gets a dollar off. So your customer might say something like:

That means that every point I have is worth one whole dollar!?

That's right. To earn one point the customer must buy a certain amount, say $20. That means for every $20 spent, the customer gets one (1) point that is worth $1.

Why it's great

  • Points can be used as a replacement for store credit. If the customer does a refund instead of giving back money, give them equivalent points that cannot be spent anywhere else than your shop.
  • Customers feel value in the points that they are using.
  • Easy to count the worth of points. One (1) point is one (1) dollar - that's it!
  • Not just simple for your customer it's simple for you.

How do I set it up?

  1. Create a catalog distribution rule
    • Conditions:
      • If you want the customer to only earn points on certain products, modify the product conditions, otherwise leave it default and the rule will apply to all products.
    • Actions:
      • On purchase of any product, the customer earns 1 points for every Y dollars in product price. The "Y" can be replaced with whatever amount of dollars you want your customer to spend before getting 1 point ($1 off). 
    • For example, 1 point for every $10 in product price would mean that the customer would earn 3 points for buying a $30 product.
  2. Create a catalog redemption rule
    • Conditions:
      • Product Conditions: If you want the customer to only be able to redeem points on certain products, modify product conditions, otherwise leave it default and the rule will apply to all products.
      • Customer spends points: The customer must spend 1 point. Just select "customer spends X points" and enter "1" in the amount (X) box. 
    • Actions:
      • Select discount the product by fixed amount and enter in "1.00" for the discount amount (X) value.
      • Enter "0" for the number of times you want the customer to be able to use this rule per product. "0" will allow customers to use this rule as many times as their points will let them.For example, if you only want the customer to be able to redeem 20 points ($20 in points) per product purchased, set the "uses per product" number to something like "20"

Drawbacks

MageRewards does not support segmented point currencies so you can't award the customer 1.75 points. This  might be annoying because if you have a rule that gives the customer 1 point for every $10 spent and the customer buys a $18 product, the customer will still only get one (1) point.

But if you really need this kind of precision you can try one of these methods:

  • Always go for a 1$ = 100 points method where instead of one (1) point earned per $20 spent you could set five points per each single dollar.
  • Give points in larger quantities and modify templates to divide display of points by 10 or 100 so that 123 points looks like 1.23 points for example. Keep in mind that in the backend everything will be based on whole values.
  • Modify the earning/spending ratio so that you can use bigger point numbers but the monetary value isn't as high. (eg. 1000 points = $5 discount -> 1 point = $0.50 discount). This yields higher precision. 

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