How do loyalty points work? A simple guide for shop owners
Loyalty points are a way to say thank you to customers who come back. They earn points on every bill and use them as money off on a later visit. Here is the idea in plain words, with a real example, and how LoyaltyRewards runs it for you without any app for customers.
The basic idea: earn on every bill, use on the next visit
A customer pays a bill and gets points based on the amount. Those points are saved against their mobile number. On a later visit, they can use the points to reduce the bill.
Unlike a stamp card, which counts visits, points follow the bill value. A customer who spends more earns more, which feels fair to both sides.
A worked example
Say you decide that 1 point is given for every Rs 100 of bill, and each point is worth Rs 1 when used as money off.
A customer pays a bill of Rs 3,000. That gives 30 points. On the next visit, those 30 points become Rs 30 off the new bill.
- Rule: 1 point for every Rs 100
- Bill: Rs 3,000 = 30 points
- Value: 1 point = Rs 1
- Next visit: Rs 30 off
Choosing your rate and rules
The rate decides how generous the scheme feels and what it costs you. Start small and simple so staff and customers understand it in one sentence. With Points & Rewards (₹1,179/month), you set the rule in your panel:
- Points earned per Rs 1, 50, 100, 500 or any amount
- The value of one point
- Minimum points needed before they can be used
- The most of a bill that points can pay
- Expiry after a period of inactivity
- Tiers that earn more for your best customers
What it costs the shop, and expiry
The cost is the discount you give when points are used. In the example, Rs 30 off on a Rs 3,000 bill is a small share of what the customer already spent. Setting a maximum share of the bill that points can pay keeps this under control.
Expiry after inactivity gives customers a reason to return rather than forget their points. A reminder before points expire is polite, and LoyaltyRewards sends it automatically.
How LoyaltyRewards makes it easy
At the counter, the Bill & Points screen needs only the customer's mobile number and the bill amount. One tap uses their points, and new customers are added on the spot.
Customers can check their balance by sending POINTS on WhatsApp. You can also run points offers on your own dates, once or every 1, 2, 3 or 6 months, by WhatsApp or SMS, with each customer's own balance in the message. Offers go only to customers who agreed to receive them.
- Nothing for customers to install
- Bill & Points counter screen
- Balance check by WhatsApp
- Automatic reminder before points expire
Questions
How many points should I give per bill?
There is no single right answer. Pick a simple rule like 1 point for every Rs 100 and watch how customers respond. You can change the rule in your panel later.
Do customers need to download an app?
No. They give their mobile number at the counter and check their points by sending POINTS on WhatsApp.
Do points expire?
You choose. You can set expiry after a period of inactivity, and LoyaltyRewards sends an automatic reminder before points expire.
How much does the points feature cost?
Try everything for 7 days at just ₹117. Paid plans are ₹707, ₹1,769 and ₹3,539 per month, adding campaigns, staff logins and more locations. Yearly plans save 20%. Points & Rewards is an add-on at ₹1,179/month.
About LoyaltyRewards
LoyaltyRewards is made by AppSage Infosystem Private Limited, Hoskote, Bangalore 562114, Karnataka (GSTIN 29AAVCA9317J1ZW). We build loyalty, Google review and WhatsApp tools for Indian shops, and we are a verified Meta Tech Provider on the official WhatsApp Business Platform. Every payment comes with a GST invoice. Talk to us on WhatsApp.