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How To Set Up A WooCommerce Points and Rewards System (Complete Guide)

How To Set Up A WooCommerce Points and Rewards System (Complete Guide)

If you want your WooCommerce store to thrive for the long haul, then you have to find ways to build lasting customer relationships. Nowadays, it’s not enough to offer great products and competitive prices–customers seek personalized experiences that make them feel valued. This is where having a WooCommerce points and rewards system can make a difference. 

By rewarding customers for their loyalty and engagement, you can build a deeper connection with your shoppers and keep them coming back. In this complete guide, we’ll walk you through everything you need to know about setting up a WooCommerce points and rewards system. Let’s dive right in! 

What Is A WooCommerce Points And Rewards System? 

A WooCommerce points and rewards system is a form of loyalty program that rewards customers with points based on their interactions with your business. For example, you may want to reward points for: 

  • Making a purchase: Grant points for every dollar spent on your store. 
  • Leaving a review: Give shoppers points every time they leave a product review–a great way to improve your store’s credibility. 
  • Signing up for an account: Encourage new customers to sign up for your website by gifting them points when they create an account. 
  • Subscribing to your email listThis is an excellent way to grow your subscriber list and keep customers in the loop for exciting offers and news

Depending on your setup, customers can redeem their accumulated points for discounts, freebies, or other exclusive perks.

Bath & Body Works’ loyalty program, showcasing points earning, free products, exclusive member access, and birthday gifts as part of the rewards system.
Example of a points and rewards system (Image Source: Bath & Body Works)

What’s great about a points and rewards system is that it keeps customers engaged over time. Unlike traditional discounts that expire after a single use, a points system encourages customers to keep shopping in your store to unlock bigger rewards. This creates a fun and rewarding shopping experience that keeps them coming back for more.

Benefits Of Adding A Points And Reward System In WooCommerce

Setting up a loyalty system in your WooCommerce store offers a host of benefits for your business. Let’s explore some of them below: 

Infographic highlighting the benefits of setting up a WooCommerce loyalty program, including customer engagement, retention, higher order values, and insights into customer behavior.
Setting up a loyalty program offers key benefits (click to zoom)

1. Better customer engagement

When setting up your rewards system, you get to decide which types of interactions garner points in your WooCommerce store. This is immensely helpful if you want to drive specific behaviors from your customers. For instance, if you’re looking to grow your email list, you can offer points for signing up for your newsletter. This can also work well if you’re aiming to get more customer reviews or encourage more referrals from existing shoppers. 

By incentivizing certain actions, you give customers more reasons to interact with your brand. As a result, you turn passive customers into active shoppers, encouraging them to stay connected with your brand long-term. This brings us to our next benefit…

2. Increase customer retention

You’ve likely heard this time and time again–acquiring new customers is more costly than retaining existing ones. In fact, according to industry insights, it can be up to 25 times more expensive! 

Loyalty reward programs help combat this pain point by giving customers a reason to return. Simply put, when shoppers know they’ll earn rewards for each purchase, they’re more likely to stick around and choose your ecommerce store over competitors. Over time, these repeat interactions build a sense of trust and loyalty, turning buyers into regular customers. 

3. Boost average order values  

Aside from keeping customers coming back, a points and rewards system can also help encourage higher average order values. Shoppers are more likely to add items to their carts to gain more points they can redeem later on. 

You can also use your loyalty program to strategically increase your order values during peak shopping periods. For example, you can grant double points for a limited during major shopping events, like Black Friday. Plugins like Advanced Coupons’ WooCommerce Loyalty Program allows you to set specific times when customers gain extra points:

Loyalty program settings showing the configuration for extra points to be earned during a specific date range, with 20 points set for a promotional period in November 2024.
With Advanced Coupons WooCommerce Loyalty Program you can configure your WooCommerce to offer extra points during specific periods click to zoom

4. Know your customers better 

Understanding your customers is key to crafting effective promotions. Running a loyalty program is one of the most effective ways to gain these valuable customer insights. Each time a buyer interacts with your program, you learn more about what motivates them and which type of rewards influence their shopping habits the most.

With this information, you can craft marketing campaigns and product offerings that truly resonate with your customers’ preferences.

How To Set Up A WooCommerce Points And Rewards System 

By default, WooCommerce doesn’t have the built-in functionality to create a loyalty program. Thankfully, you can easily accomplish this using a rewards plugin like WooCommerce Loyalty Program. This powerful tool allows you to set up a points-based rewards system in WooCommerce in less than five minutes!

In this tutorial, we’ll walk you through how you can easily create a loyalty program in WooCommerce using this plugin. 

Advanced Coupons WooCommerce Loyalty Program plugin homepage, highlighting features such as 5-minute setup, points earning, redemption options, and customer engagement tools.
Easily add points and rewards to your WooCommerce store with the Advanced Coupons Loyalty Program plugin

Before we get started, make sure that you have installed and activated WooCommerce Loyalty Program. If you haven’t done so already, you can get the plugin here or check out our official getting started guide

Step 1: Set up your points system 

After installing WooCommerce Loyalty Program, you’ll gain access to a new tab under Coupons called “Loyalty Program”. This is where you can configure how your rewards system will work. The first thing you have to do is set up your points system.

Head to your WordPress dashboard > Coupons > Loyalty Program, then click on the Settings tab. Under the General section, you can set how many points customers earn for every dollar amount spent in your store. By default, customers earn 1 point for every $1 spent. However, you can modify these settings any way you want to match your store’s preferences.

In the example below, we’ve set orders to earn 5 points for every $1 spent. With the points-to-price redeemed ratio set to 50, shoppers need to earn 50 points to redeem $1 off their purchase.  

General settings in the Loyalty Program, showing points earned ratio, points redeemed ratio, and point name settings.
Setting basic loyalty program settings, including points-to-dollar ratios and point names (click to zoom)

Step 2: Choose what actions earn points 

The next important thing you need to set is how your shoppers will earn points. To do so, head to the Points Earning tab

Points Earning settings, showing options for calculating points on discounts, tax, shipping, and minimum thresholds
Setting points earning calculations and which actions earn loyalty rewards (click to zoom)

This section is where you can define: 

  • Actions that grant points: Choose the specific actions that grant points to shoppers, such as purchasing products, leaving a review, registering as a new customer, and more. 
  • Points granted per action:  Decide how many points are granted per action. For example, you can grant 10 points to customers who complete their first order. 
  • Minimum spend to earn points: Set the minimum spend required for customers to gain points for purchases.
  • Maximum points per order: This sets the maximum number of points that can be gained for purchasing products per order. It’s helpful for preventing customers from earning too many points on very large orders. 
Additional points earning settings, showing options to set points for actions like registering as a user, completing orders, and more
Customizing how customers earn points through actions, such as registering, completing orders, or spending over a certain threshold (click to zoom)
  • Spending over breakpoints: With this option, you can reward customers with extra points if they spend over a specific dollar amount for a certain purchase. For example, you can reward customers with bonus points if they spend more than $50, helping encourage customers to add more items to their carts. 
  • Extra points for a certain period: You can also define extra points to be given during a specific date range. This is handy during big promotional events, such as holiday shopping and Black Friday. 

Step 3: Determine your points redemption and expiry settings

Now that we’ve set how customers earn points, it’s time to define how customers can redeem them. Setting this is crucial, as it ensures that your rewards system is fair for your business and your customers. In the Redemption & Expiry tab, you can set: 

Redemption and Expiry settings, showing options for minimum points required, points expiration, and customer messages
Setting points redemption and expiry rules for your loyalty program (click to zoom)
  • Minimum points allowed for redemption: This sets how many points a customer needs to start redeeming rewards. 
  • Maximum points allowed for each store credit redemption: With this option, you can limit the number of points shoppers can redeem for store credits. 
  • Points expiry: Sets the specific number of days points expire after inactivity. By default, it’s set to 365 days. 

This section also allows you to customize your messages to notify customers when their points are about to expire. 

Step 4: Define role restrictions (optional) 

In some cases, you might want to prevent certain users or user roles from earning points. For example, you may want to exclude wholesale customers from your WooCommerce points and rewards system since they already enjoy discounted bulk pricing. 

You can define these rules under the “Restrictions” tab, where you have two options: 

Loyalty Program restrictions settings, showing options to disallow points accumulation for specific roles and users
Configure restrictions for your loyalty program by excluding certain user roles or individual users (click to zoom)
  • Disallow points accumulations for roles: Choose which user roles can’t earn points, such as “Wholesale Customers” or “Shop Managers”.
  • Disallow points accumulations for users: You also have the option to exclude specific individual users from your rewards program.

These are basically all the major settings you need to tweak, and you’re good to go! Setting these up will take less than five minutes. 

Feel free to explore additional options within the plugin to further customize your rewards program. WooCommerce Loyalty Program gives you immense flexibility, allowing you to tailor every aspect of your points and rewards system.

Managing Your WooCommerce Points And Rewards System 

Once your program is up and running, you can monitor all aspects of it on your official plugin dashboard. Your Loyalty Program dashboard provides a summary of key data, such as total points earned, top customers, and points earning sources. This information gives you a clear picture of how well your program is performing and how engaged customers are. 

Loyalty Program’s dashboard, displaying top earning customers, points status and more.
Manage your WooCommerce loyalty program by viewing and managing customer points from a central dashboard (click to zoom)

You also gain access to the Customer Dashboard, where you can view all your WooCommerce customers and manually adjust their points. This is handy in cases when you need to make corrections or reward specific customers. 

Customer Dashboard, showing customer names, points earned, and expiration dates with options to view stats or send reminders.
View detailed stats for each customer in your loyalty program, including points earned (click to zoom)

Customers can view and redeem their points on their official My Account area. They can also claim their redeemed store credits directly on the checkout page. 

Customer’s "Meow Points" balance and redemption options, showing available points and their value in store credits.
Customers can easily track their points balance and redeem points as store credits (click to zoom)

Conclusion 

One of the most effective ways to retain customers and keep them coming back is by setting up a WooCommerce points and rewards system. This allows you to reward customers for their engagement with your brand, giving them a compelling reason to choose you over competitors!

In this complete guide, we showed you how easily you can set this system up in four steps with WooCommerce Loyalty Program

  1. Set up your points system
  2. Choose which actions earn points
  3. Determine redemption and expiry settings
  4. Define role restrictions (optional)

Advanced Coupons’ Loyalty Program plugin allows you to set up a rewards system in less than five minutes. With this plugin, you can reward customers for making a purchase, leaving reviews, signing up for an account, and more.

Do you have any questions about setting up a loyalty program in WooCommerce? Let us know in the comments! 

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Kathren Kelly Writer, Content Manager
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