The Reward Return Percentage setting lets you decide how much of each customer purchase should be returned as rewards. These rewards are then converted into points based on your points conversion setting.
Step 1: Set a Reward Percentage #
Merchants can either:
- Choose a preset option (e.g., 1%, 3%, 5%)
- Enter a custom percentage (e.g., 7%, 12%, etc.)
This flexibility allows you to align rewards with your business goals.
Step 2: Calculate Reward Value #
When a customer makes a purchase, the system calculates the reward value:
Formula:
Reward Value = Purchase Total × Return %
Example:
- Purchase total = $640
- Reward percentage = 5%
- Reward value = $640 × 5% = $32
Step 3: Convert Reward Value to Points #
The reward value is converted into points using your conversion rate (e.g., $1 = 1 point).
Formula:
Reward Points = Reward Value × (Points per $1)
Example:
- Reward value = $32
- Conversion rate = $1 = 1 point
- Customer earns 32 points
Quick Comparison Table (Example: $640 purchase) #
| Reward % | Reward Value | Points (if $1 = 1 point) |
|---|---|---|
| 1% | $6.40 | 6 points |
| 3% | $19.20 | 19 points |
| 5% | $32.00 | 32 points |
| Custom 7% | $44.80 | 45 points |
This way, you control both how generous your rewards are (percentage) and how points are valued (conversion rate).
