1. What Does the Ratio % Mean?

  • The ratio is the % of the order value converted into points.
  • Example: If ratio = 5%, and the customer spends €100, they earn 5 points (or 5 “units” of points).
  • You decide how many points correspond to a reward value. For example, 1 point = €1 discount, or 1 point = €0.1 discount.
  • Since your system allows only one % ratio for the whole program (all products), this ratio must balance margin and reward attractiveness across your catalog.

Reward Type Points Cost Equivalent Value* Notes

5% Discount on next order 5 - 8 pts €2.5 - €4 (if 1 pt = €0.5) Easy to redeem, encourage frequent orders

Fixed discount €5 off 10 pts €5 Higher threshold but attractive

Free shipping (via Shopify code) 6 - 8 pts Equivalent shipping cost Incentivizes larger orders

Free small product (via Shopify code) 10-15 pts Depends on product cost Good for cross-selling

3. How to Translate Points into Rewards

Because points earned = % order value (e.g., 5 points for €100 order at 5%), define points value to reward conversion to keep rewards attractive:

Example scenario:

  • Ratio: 5%
  • Points earned: 5 points per €100 spent
  • Define 1 point = €1 discount → Too generous (5 points = €5 discount on €100, i.e., 5%)
  • Or 1 point = €0.5 discount → 5 points = €2.5 discount on €100 (2.5%) — better for margins

4. Reward Examples and Points Thresholds

Business Type Suggested Ratio % Notes

Fashion & Apparel 5% - 8% Mid margin allows decent reward value

Grocery & Food 1% - 3% Low margins, so keep ratio low to avoid losses

Electronics 0.5% - 2% High price but low margin, reward sparingly

Beauty & Wellness 4% - 7% Consumables with decent margin

Subscription Services Fixed points (non %-based if possible) or 5% Reward fixed renewal or use 5% if only % allowed

  • Adjust based on your point-to-currency value ratio.

5. Bonus Points Beyond Purchases (Add Fixed Points Manually)

Since you can’t set different % per action in your system, manually add fixed points for:

  • Account creation: 3 - 5 pts
  • Referral: 10 - 15 pts
  • Review: 2 - 3 pts
  • Social share: 1 - 2 pts

(Adjust values relative to ratio so points feel meaningful.)

6. Managing Wallet Balances & Redemptions

  • Set a minimum redemption threshold, e.g., 5 points minimum.
  • Keep points valid for 6-12 months to motivate usage.
  • Use push notifications to remind users of points balance and available rewards.
Summary

Reward Type Points Cost Equivalent Value* Notes

5% Discount on next order 5 - 8 pts €2.5 - €4 (if 1 pt = €0.5) Easy to redeem, encourage frequent orders

Fixed discount €5 off 10 pts €5 Higher threshold but attractive

Free shipping (via Shopify code) 6 - 8 pts Equivalent shipping cost Incentivizes larger orders

Free small product (via Shopify code) 10-15 pts Depends on product cost Good for cross-selling

Ratio = % of order converted to points; points value = fraction of €1 (you define)

Find best practices on tier configuration in this article.