A loyalty system can be a powerful tool for repeat purchases and long-term customer relationships. But for it to work effectively, it needs to be set up correctly - i.e. in line with margin, average order value and your goals. This article will show you how to do that - specifically, we'll focus on key attribution and redemption factors.
What are the coefficients in the loyalty system?
- Points crediting factor = how much value an order must have in order for the customer to get 1 point.
- Points redemption coefficient = how many crowns of discount the customer gets when using 1 point.
What you need to know before you start setting up
Parameter |
Example |
What does it mean |
ASP - average order value |
1 200 CZK |
Without transport and VAT |
Gross margin |
35 % |
E.g. for normal clothing |
I want a refund from the margin |
15 % |
Motivation for loyalty |
1 point = |
1 Kč |
Value at drawdown |
Calculation diagram
A practical example of the setup
E-shop with nutritional supplements:
- ASP: 1 000 CZK
- Margins: 50%
- Target: to return 10% of the margin
- 1 point = 1 CZK discount
Calculation:
- Margin from 1 000 CZK = 500 CZK
- 10% of margin = 50 CZK → add 50 points
- Crediting coefficient: 1 point per 20 CZK order
- Redemption coefficient: 1 point = 1 CZK discount
- Maximum discount per purchase: e.g. 100 CZK
Recommended settings for Shoptet
- Crediting coefficient: 1 point per 20 CZK
- Drawing coefficient: 1 point = 1 CZK
- Minimum order value for redemption: 500 CZK
- Expiry of points: 365 days
Tips for advanced
- Segmentation: different coefficients for VIP customers
- Discount limitation: e.g. max. 30% of the order
- Incentive expiry: reminder before points expire
- Reactivation: extra points after prolonged inactivity
Summary
A properly set up loyalty system is not an expense - it's a long-term investment in customer loyalty. If you know your numbers (ASP, margin, goals), calculating the right points ratio is simple. Plus, it's very easy to adjust these ratios on the Shoptet platform.