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Somewhat similar to the VIP Account Tiers feature of your Ingenii store, the Loyalty Points rewards your customers for their continued support of your store by awarding them points which can either be used towards a discount from their next purchase, or to actually purchase items using points ONLY, depending on your own personal choice.
Within your Store Manager you have the ability to set up your own Loyalty Points scheme whereby you determine how many points are earned and from what size of spend. You also decide how much each point equates to when redeeming points at checkout, and whether there is a minimum number of points required before the discount can become applicable.
For example... setting up your preferences so that spending £10 GBP would earn your customers 1 Loyalty Point, and that using 10 Loyalty Points would give them a £1 discount from your store would mean that your customer would effectively be getting a 1% discount from their purchase when redeeming points at checkout, as they would have to spend £100 to earn those 10 points, which would give them their £1 discount. If you wanted to prevent people from using their points too soon, you could easily set the minimum redemption value to 50 points so that, even though you'd be allowing a £5 discount from your store, it wouldn't be applicable until the customer had actually spent £500 with you.
You also have the opportunity to set a particular points value for any items within your store, allowing your customers to purchase these items using ONLY loyalty points. Taking the above example for point values, you could then pick an item costing £75 and set the actual "Buy With Points" value to 100 points. This means that when you customers reach the level of 100 points, they could either use their 100 points for a £10 discount (after spending £1000 to earn the points) or they could trade them for this item worth £75, which may be an end of line product that you'd rather not hold in stock.