Loyalty Program Complete Guide
Complete guide to setting up and managing your loyalty program, including tiers, campaigns, rewards, and notifications.
Table of Contents
- Initializing Loyalty Program
- Managing Loyalty Tiers
- Creating Loyalty Campaigns
- Configuring Rewards
- Best Practices
Initializing Loyalty Program
Step 1: Enable Loyalty
Navigate to: Admin Portal > Loyalty > Settings
Loyalty Program Status: Enabled
Program Name: [Your Brand] Rewards
Points Currency Name: Points (or customize: "Stars", "Gems", etc.)
Points Display: Show on product pages, cart, account dashboard
Step 2: Configure Point Earning Rules
Base Point Rules:
Purchase Points:
├── $1 spent = 1 point (default)
├── Rounding: Round down to nearest point
├── Include Tax: No (points on pre-tax amount)
└── Include Shipping: No
Product Scan Points:
├── QR Code Scan: 50 points per scan
├── First Scan Bonus: +25 points
├── Daily Scan Limit: 3 scans per day max
└── Scan Expiration: Points expire if product not purchased
Referral Points:
├── Referrer Reward: 500 points when friend completes first order
├── Referee Reward: 200 points on signup
└── Min Purchase for Referrer Reward: $25
Review Points:
├── Product Review: 25 points
├── Photo Review: +25 points (50 total)
└── Review Approval: Manual or auto-approve
Step 3: Configure Point Redemption
Redemption Settings:
├── Point Value: 100 points = $1.00
├── Minimum Redemption: 500 points ($5)
├── Maximum Redemption per Order: 5,000 points ($50)
├── Redemption Increments: 100 points
└── Points + Cash: Allow (can use points + pay remainder)
Restrictions:
├── Cannot Redeem on: Sale items, shipping, tax
├── Combine with Coupons: Yes
└── Expires: 12 months from earn date
Managing Loyalty Tiers
Understanding Tier Systems
Tiers reward customers based on:
- Spend-Based: Total lifetime spending
- Points-Based: Total points earned
- Purchase-Based: Number of orders completed
- Hybrid: Combination of above
Creating Tiers
Navigate to: Admin Portal > Loyalty > Tiers
Example Tier Structure
Bronze Tier (Entry Level):
Tier Name: Bronze
Requirements:
├── Minimum Spend: $0 (auto-enrolled)
├── OR Points Earned: 0+
└── Orders Completed: 0+
Benefits:
├── Points Multiplier: 1x (standard)
├── Birthday Reward: 100 points
├── Exclusive Access: None
└── Free Shipping Threshold: $100
Welcome Email: Sent immediately on first purchase
Silver Tier:
Tier Name: Silver
Requirements:
├── Lifetime Spend: $250+
├── OR Points Earned: 2,500+
├── AND Orders: 5+ orders
Benefits:
├── Points Multiplier: 1.25x (25% bonus points)
├── Birthday Reward: 250 points
├── Early Access: New product launches (24h early)
├── Free Shipping Threshold: $75
└── Exclusive Promotions: Silver-only deals
Tier Upgrade Email: "Congratulations! You've reached Silver tier!"
Gold Tier:
Tier Name: Gold
Requirements:
├── Lifetime Spend: $1,000+
├── OR Points Earned: 10,000+
├── AND Orders: 20+ orders
Benefits:
├── Points Multiplier: 1.5x (50% bonus points)
├── Birthday Reward: 500 points + free gift
├── Early Access: 48h before public
├── Free Shipping: Always free
├── Exclusive Promotions: Gold-only flash sales
├── Personal Account Manager: Dedicated support
└── Special Gifts: Quarterly surprise gifts
Tier Upgrade Email: "Welcome to Gold - VIP treatment awaits!"
Platinum Tier (VIP):
Tier Name: Platinum
Requirements:
├── Lifetime Spend: $5,000+
├── OR Points Earned: 50,000+
├── AND Orders: 50+ orders
Benefits:
├── Points Multiplier: 2x (double points)
├── Birthday Reward: 1,000 points + premium gift
├── Early Access: 72h exclusive access
├── Free Shipping: Always free + priority fulfillment
├── Exclusive Products: Platinum-only limited releases
├── Personal Concierge: WhatsApp direct line
├── VIP Events: Exclusive brand events, farm tours
├── Custom Orders: Request custom products/strains
└── Annual Gift: $100 gift package
Tier Upgrade Email: "PLATINUM UNLOCKED - You're in the top 1%!"
Tier Management Best Practices
1. Set Achievable Tiers:
Distribution Target:
├── Bronze: 60% of customers
├── Silver: 25% of customers
├── Gold: 12% of customers
└── Platinum: 3% of customers (top spenders)
2. Tier Maintenance:
Review Period: 12 months
Tier Retention: Spend $X in past 12 months to maintain
Example:
├── Silver: Spend $250 in past year, or drop to Bronze
├── Gold: Spend $1,000 in past year, or drop to Silver
└── Platinum: Spend $5,000 in past year, or drop to Gold
Grace Period: 30 days warning before downgrade
Downgrade Email: "You're about to lose Gold status - shop now to keep it!"
3. Tier Communication:
Progress Emails:
├── 50% to next tier: "You're halfway to Silver!"
├── 75% to next tier: "So close! $50 away from Silver"
├── 90% to next tier: "Just $25 more for Silver tier!"
└── Tier Achieved: "🎉 Welcome to Silver Tier!"
Account Dashboard:
├── Progress Bar: Visual progress to next tier
├── Requirements Breakdown: What's needed
├── Benefits Preview: What you'll get
└── Current Tier Benefits: What you have now
Creating Loyalty Campaigns
Campaigns are milestone-based challenges that reward customers.
Campaign Types
| Campaign Type | Goal | Example |
|---|---|---|
| Purchase Milestone | Complete X orders | "Make 10 purchases, get $20 off" |
| Spend Milestone | Spend $X total | "Spend $500, get free product" |
| Product Scan | Scan X products | "Scan 5 different products, earn 500 points" |
| Category Purchase | Buy from X categories | "Try all 5 categories, win prize" |
| Referral Challenge | Refer X friends | "Refer 3 friends, get $50 credit" |
| Social Engagement | Share/Follow/Review | "Follow + Share = 100 points" |
Creating a Campaign
Navigate to: Admin Portal > Loyalty > Campaigns > Create Campaign
Example: "Scan to Win" Campaign
Campaign Name: Spring Scan Challenge
Campaign Type: Product Scan Milestone
Status: Active
Goal Configuration:
├── Target: Scan 10 different products
├── Time Limit: 30 days from first scan
├── Products: Must be 10 unique products (not 10 scans of same)
└── Eligible Products: All products with QR codes
Rewards:
├── Milestone 1 (3 scans): 100 bonus points
├── Milestone 2 (5 scans): 250 bonus points
├── Milestone 3 (7 scans): 500 bonus points
├── Final Reward (10 scans): Free pre-roll 2-pack ($25 value)
└── Bonus: Double points on all scanned products during campaign
Eligibility:
├── Customer Tiers: All tiers
├── New Customers: Eligible
├── Previous Participants: Can join once per campaign period
└── Geographic: All locations
Campaign Period:
├── Start: March 1, 2024
├── End: March 31, 2024
└── Time to Complete: 30 days from enrollment
Progress Tracking:
Customer Dashboard Shows:
├── Progress Bar: 7/10 products scanned
├── Next Reward: Scan 3 more for free pre-roll!
├── Time Remaining: 12 days left
├── Recommended Products: "Try these to complete your challenge"
└── Share Progress: Social sharing buttons
Example 2: "Spend & Save" Campaign
Campaign Name: $500 Spend Challenge
Campaign Type: Spend Milestone
Status: Active
Goal Configuration:
├── Target: Spend $500 cumulative
├── Time Limit: 60 days from enrollment
├── Qualifying Purchases: All products (excluding tax/shipping)
└── Enrollment: Auto-enrolled on first purchase during campaign
Reward Tiers:
├── $100 spent: $5 coupon
├── $250 spent: $15 coupon + 500 points
├── $500 spent: $50 coupon + 2,000 points + Silver tier upgrade
└── Stretch Goal ($750): Platinum tier for 3 months
Progress Notifications:
├── Email at $100: "You've unlocked your first reward!"
├── Email at $250: "Halfway there! Keep going for $50 off"
├── Push at $450: "You're so close! $50 away from $50 coupon"
└── Email at $500: "🎉 Challenge Complete! Here's your $50 off"
Campaign Period:
├── Enrollment Opens: April 1, 2024
├── Last Day to Enroll: May 15, 2024
├── Campaign Ends: June 30, 2024
└── Rewards Expire: July 31, 2024
Campaign Notifications
Campaigns are tightly integrated with the notification system.
Notification Triggers:
1. Campaign Launch:
- Email: "New Challenge: Scan 10 Products, Win Big!"
- Push: "🎯 New loyalty challenge is live"
- In-App: Banner on homepage
2. Enrollment Confirmation:
- Email: "You're in! Here's how to win..."
- Push: "Challenge accepted! Track progress in app"
3. Progress Updates:
- Email: At 25%, 50%, 75%, 90% completion
- Push: At each milestone reached
- SMS: (Optional) At 90% "You're so close!"
4. Milestone Reached:
- Email: "Milestone unlocked! 500 points added"
- Push: "🎉 You earned a reward!"
- In-App: Confetti animation + reward display
5. Campaign Completion:
- Email: "Champion! You completed the challenge"
- Push: "🏆 Challenge complete - claim your prize"
- SMS: (VIP only) "Congrats! Your prize is ready"
6. Reminder/Urgency:
- Email: "3 days left to complete challenge"
- Push: "⏰ Time running out - 2 more scans needed"
7. Campaign Expiration:
- Email: "Challenge ended - here's what you earned"
- Push: "Final results: You finished 8/10"
Email Template Variables:
Available variables for campaign emails:
├── {{customer_name}}
├── {{campaign_name}}
├── {{current_progress}} (e.g., "7/10")
├── {{percent_complete}} (e.g., "70%")
├── {{next_milestone}}
├── {{reward_description}}
├── {{time_remaining}}
├── {{cta_button}} (e.g., "View Progress", "Shop Now")
└── {{share_link}} (referral link)
Configuring Rewards
Reward Types
1. Point Rewards:
Reward: Bonus Points
Amount: 500 points
Trigger: Campaign completion, birthday, tier upgrade
Expiration: Standard (12 months from earn)
2. Discount Coupons:
Reward: Coupon Code
Type: Percentage or fixed amount
Example: $20 off next purchase
Min Purchase: $50
Expiration: 30 days from issuance
Auto-Apply: Yes (added to account automatically)
3. Free Products:
Reward: Free Item
Product: Pre-Roll 2-Pack
Value: $25
Redemption: Auto-added to cart or select at checkout
Limit: 1 per customer
Expiration: 60 days
4. Tier Upgrades:
Reward: Temporary Tier Boost
New Tier: Gold
Duration: 3 months
Benefits: All Gold tier benefits active
Reversion: Drop back to earned tier after period
5. Exclusive Access:
Reward: Early Product Access
Products: New strain drops
Access Window: 48 hours before public
Notification: Email + Push 24h before drop
Linking Rewards to Notifications
Navigate to: Admin Portal > Loyalty > Campaigns > [Select Campaign] > Notifications
Notification Configuration:
Milestone 1 Reached (3 scans):
├── Trigger: Scan count = 3
├── Email Template: "milestone-1-reached"
├── Subject: "You unlocked 100 bonus points! 🎉"
├── Send Delay: Immediate
├── Include: Progress update, next milestone preview
└── CTA: "Keep Scanning"
Campaign Completed (10 scans):
├── Trigger: Scan count = 10
├── Email Template: "campaign-complete"
├── Subject: "🏆 Challenge Complete! Claim Your Free Pre-Roll"
├── Push Notification: "You won! Free pre-roll added to your account"
├── SMS: (Optional) "Congrats [Name]! Your prize is ready to claim"
├── Include: Reward details, redemption instructions
└── CTA: "Claim Reward" button
Time-Based Reminder:
├── Trigger: 7 days before campaign end + progress < 100%
├── Email Template: "campaign-reminder"
├── Subject: "⏰ 7 days left - You're 3 scans away!"
├── Include: Current progress, time remaining, recommended products
└── CTA: "Complete Challenge"
Best Practices
1. Tier Structure
Keep It Simple:
- ✅ 3-4 tiers max (more = confusing)
- ✅ Clear progression path
- ✅ Meaningful benefit increases
- ❌ Avoid: Too many tiers, unclear requirements
Achievable Yet Aspirational:
✅ Good: Most customers can reach Tier 2, Tier 3 is stretch goal
❌ Bad: Tier 2 requires $10,000 spend (unreachable for most)
2. Campaign Design
Set Realistic Goals:
Analysis:
├── Average Customer: 2 orders/month, $60 per order
├── Challenge Design: 5 orders in 2 months = achievable
└── Reward Value: $25 (ROI positive if increases frequency)
✅ Good Challenge:
"Make 5 purchases in 60 days → $25 reward"
Feasibility: 40% of customers can achieve
❌ Bad Challenge:
"Make 20 purchases in 30 days → $10 reward"
Feasibility: <1% can achieve, reward too low
3. Communication Frequency
Don't Over-Notify:
Max Email Frequency:
├── Campaign Launch: 1 email
├── Progress Updates: Max 1 per week
├── Milestone Reached: Immediate (but not daily)
├── Reminder: 1 at 7 days left, 1 at 2 days left
└── Total: ~5-6 emails per campaign
Opt-Out Option: Always include in campaign emails
4. Reward Value
Calculate ROI:
Campaign: "Spend $500 get $50 off"
Costs:
├── Reward Cost: $50
├── Email/Notification: $2
├── Support/Admin: $5
└── Total Cost: $57
Revenue:
├── Incremental Spend: $500 (they might have spent $300 normally)
├── True Incremental: $200
├── Margin (40%): $80
├── Minus Reward: $80 - $57 = $23 net profit
└── ROI: +40% (worthwhile)
5. Tier Retention
Warn Before Downgrade:
30 Days Before:
Email: "Your Gold status expires in 30 days"
CTA: "Shop now to keep your benefits"
14 Days Before:
Email: "Only 2 weeks to maintain Gold tier"
Offer: "Spend $200 more to keep Gold"
3 Days Before:
Push: "Last chance! 3 days to keep Gold status"
Urgency: "You'll lose free shipping & 1.5x points"