Points Redemption Rules

Points Redemption Rules

Points Redemption Rules in Reward Points Settings allow you to configure how customers redeem their reward points for discounts, cash, or other rewards. You can set redemption rates, minimum requirements, maximum limits, and redemption conditions. This guide covers all points redemption configuration options.

Accessing Points Redemption Rules

To configure points redemption rules:

1. Navigate to Settings → Reward Points Settings
2. Click on "Points Redemption Rules" or "Redemption Configuration"
3. Configure redemption rules as needed

Basic Redemption Rate

Standard Redemption Rate

Set the default points redemption rate:

• Points per Currency Unit: Points required per unit of currency (e.g., 100 points = ₹10)
• Percentage Value: Points value as percentage (e.g., 100 points = 1% discount)
• Fixed Value: Fixed value per point (e.g., 1 point = ₹0.10)
• Currency: Currency for redemption calculations

Redemption Rate Examples

• 100 points = ₹10: Customer redeems 100 points for ₹10 discount
• 50 points = ₹5: Customer redeems 50 points for ₹5 discount
• 1 point = ₹0.10: Each point worth ₹0.10
• 1000 points = ₹100: Higher value for bulk redemption

Redemption Conditions

Minimum Redemption Requirements

Set minimum points required for redemption:

• Minimum Points: Minimum points required to redeem (e.g., 100 points)
• No Minimum: Allow redemption of any point amount
• Minimum Purchase: Minimum purchase amount to use points
• Combined Requirements: Both minimum points and minimum purchase

Maximum Redemption Limits

• Maximum per Transaction: Maximum points redeemable per transaction
• Maximum per Day: Daily redemption limit per customer
• Maximum per Month: Monthly redemption limit per customer
• Percentage of Bill: Maximum redemption as percentage of bill amount

Redemption Eligibility

• All Customers: All customers can redeem points
• Registered Customers Only: Only registered customers can redeem
• Minimum Balance: Require minimum points balance to redeem
• Account Status: Only active accounts can redeem

Redemption Types

Discount Redemption

Redeem points for discounts on purchases:

• Percentage Discount: Points convert to percentage discount
• Fixed Amount Discount: Points convert to fixed discount amount
• Maximum Discount: Cap on discount amount
• Minimum Discount: Minimum discount when redeeming

Cash Redemption

• Cash Value: Points convert to cash value
• Cash Payment: Pay cash equivalent of points
• Account Credit: Add points value as account credit

Product/Service Redemption

• Free Items: Redeem points for free items
• Product Catalog: Points redeemable for specific products
• Service Vouchers: Points for service vouchers

Tiered Redemption Rates

Multiple Redemption Tiers

Set different redemption rates based on points amount:

• Tier 1: Lower value for small redemptions
• Tier 2: Higher value for medium redemptions
• Tier 3: Highest value for large redemptions
• Bulk Discount: Better rates for larger redemptions

Tier Configuration Example

• 100-500 points: 100 points = ₹8
• 501-1000 points: 100 points = ₹10
• 1001+ points: 100 points = ₹12

Category-Based Redemption

Item Category Rules

Set different redemption rules for different categories:

• Category-specific Rates: Different rates per category
• Exclude Categories: No redemption on certain categories
• Bonus Categories: Better redemption rates for specific categories

Category Examples

• Food Items: Full redemption allowed
• Beverages: 50% redemption allowed
• Excluded Items: No redemption on sale items

Redemption Restrictions

Transaction Restrictions

• Exclude Returns: No redemption on return transactions
• Exclude Discounted Items: No redemption on already discounted items
• Specific Invoice Types: Redemption only on specific invoice types
• Minimum Bill Amount: Require minimum bill to use points

Item Restrictions

• Exclude Specific Items: No redemption on certain items
• Exclude Sale Items: No redemption on sale/clearance items
• Brand Restrictions: Exclude specific brands

Partial Redemption

Partial Redemption Rules

• Allow Partial: Allow partial points redemption
• Full Redemption Only: Require full redemption
• Minimum Partial: Minimum points for partial redemption
• Remaining Balance: How to handle remaining points after partial redemption

Combined Payment

• Points + Cash: Allow combining points with cash payment
• Points + Card: Allow combining points with card payment
• Maximum Points Usage: Maximum percentage of bill payable with points

Redemption Calculation

Calculation Method

• Before Tax: Calculate on amount before tax
• After Tax: Calculate on amount including tax
• After Discount: Calculate on discounted amount
• Before Discount: Calculate on original amount

Rounding Rules

• Round Up: Always round up redemption value
• Round Down: Always round down redemption value
• Round Nearest: Round to nearest value
• Exact Calculation: Use exact calculated value

Redemption Processing

When Redemption Occurs

• At Checkout: Points redeemed at time of purchase
• Pre-approved: Redemption requires pre-approval
• Manual Processing: Staff manually processes redemption

Points Deduction

• Immediate Deduction: Points deducted immediately
• On Payment: Points deducted when payment is received
• On Invoice Completion: Points deducted when invoice is finalized

Redemption Reversal

Reversal Rules

• On Return: Automatically restore points on return
• On Cancellation: Restore points on invoice cancellation
• Manual Reversal: Allow manual points restoration
• Reversal Time Limit: Time limit for reversing redemptions

Special Redemption Offers

Promotional Redemption

• Double Value Days: Points worth double on specific days
• Bonus Redemption: Extra value during promotions
• Seasonal Offers: Special redemption rates during seasons
• Redemption Codes: Special rates with promo codes

Limited Time Offers

• Time-based Bonuses: Better rates during specific times
• Weekend Specials: Special redemption on weekends
• Event-based: Special rates during events

Customer Communication

Redemption Notification

• Redemption Confirmation: Notify customers when points are redeemed
• Points Balance: Show updated balance after redemption
• Redemption Statement: Provide redemption history
• Email/SMS Alerts: Send alerts for redemptions

Saving Redemption Rules

After configuring points redemption rules:

1. Review all redemption rates and conditions
2. Test calculations with sample amounts
3. Click "Save" or "Update Rules"
4. Rules will apply to new redemptions
5. Test with a sample redemption to verify

Best Practices

• Balance Value: Balance redemption value with earning rates
• Clear Rules: Set clear and simple redemption rules
• Test Calculations: Test redemption calculations before going live
• Customer Communication: Clearly communicate redemption rules
• Regular Review: Review and adjust rates based on program performance
• Prevent Abuse: Set limits to prevent program abuse
• Financial Sustainability: Ensure redemption rates are sustainable

Related Settings

Points redemption rules work together with:

• Points Earning Rules: Earning and redemption should be balanced
• Points Expiry Settings: Expiry affects redemption urgency
• Customer Settings: Customer eligibility affects redemption

Well-configured redemption rules encourage point usage and drive repeat purchases!