8 Key Steps to Set Up and Configure Magento Reward Points

• How Do Reward Points Benefit Magento Ecommerce Businesses?

• 6 Core Features of Reward Points in Magento

• 8 Steps to Configure Magento Rewards in Adobe Commerce

• Latest Trends in Magento Reward Points Programs

• FAQs

• Summary

How Do Reward Points Benefit Magento Ecommerce Businesses?

1. Better Customer Loyalty

Reward points programs motivate customers to return & lead to a stronger emotional connection. They also make repeat purchases by offering tangible rewards for their loyalty. Modern programs use AI to personalize rewards based on individual shopping patterns. This flexibility leads to a notable increase in engagement rates. It makes customers feel valued and recognized.

2. Increased Customer Retention

Retaining existing customers is more cost-effective than acquiring new ones. Reward points make visitors more likely to remain loyal to a brand. Accumulating points toward discounts or other perks gives customers a reason to return.

3. Boosted Higher Spending

Customers are more likely to increase their order value if doing so earns them more points. For instance, they might add extra items to their cart to reach a threshold that earns them extra rewards. This approach can increase average order values across the board.

4. Flexible Repeat Purchases

With reward points acting as an incentive, users have a compelling reason to shop again. Earning or using accumulated points motivates more frequent purchases. This incentive boosts customer engagement and sales.

5. New Customer Acquisition Promotion

A well-advertised rewards and loyalty program can attract new customers. It is especially evident if it offers significant value compared to competitors. Referral rewards get existing customers to bring in new ones, boosting word-of-mouth marketing.

6. Increased Customer Engagement

Design reward programs that go beyond purchases and include other forms of engagement. Customers can engage in social media interactions, reviews, or participation in surveys. This broader engagement can strengthen the customer relationship and provide valuable feedback & content. Gamification elements, such as "badges" and "tier achievements", must also be available.

7. Facilitated Data Collection

Customers are often more willing to share personal information and preferences. It is especially seen when signing up for a rewards program. This data can be valuable for:

• Personalized marketing
• Product development
• A better customer experience

8. Improved Inventory Management

By offering rewards for specific products or categories, businesses can manage their inventory. This flexibility encourages customers to buy overstocked items. They can also promote the sale of new or underperforming products.

9. Better Brand Differentiation

A unique/generous rewards program sets an e-commerce business apart from its competitors. It offers a compelling reason for customers to choose one brand over another.

10. Market Research Support

The behaviors and preferences indicated through rewards program participation can offer insights into:

• Market trends
• Customer desires

This flexibility supports more effective product development and marketing strategies.

6 Core Features of Reward Points in Magento

1. Integration

The reward points system is well integrated with the broader Adobe Commerce ecosystem. It enables a unified customer experience across shopping, account management, and loyalty rewards. This integration extends to omnichannel experiences. It allows customers to earn & redeem points both online and in-store.

2. Earning Points

Customers can earn points through various actions. These actions can include:

• Making purchases
• Registering for an account
• Subscribing to a newsletter
• Referring friends

The platform allows for the creation of custom earning rules based on a wide range of criteria.

3. Points Redemption

You can redeem points for 'discounts', 'special offers', or other perks. Adobe Commerce allows for flexible redemption rules. It will enable you to set or specify:

• Least thresholds
• Highest redemption limits
• Product or category eligibility

4. Customer Account Integration

You can integrate reward points into customer accounts. Customers can view their balance, transaction history, & potential rewards from their account dashboard.

5. Management and Reporting

The backend provides powerful tools for managing the reward points system. The tools allow you to adjust 'point balances' and configure 'earning & redemption rules'. They also help you analyze the program's impact through reporting tools. Modern extensions offer live analytics and advanced reporting features.

6. Customization and Extensions

Magento's modular nature allows you to expand or customize functionality through necessary extensions. These extensions are available through the Magento Marketplace. They enable users to add new features or integrate with external rewards platforms.

8 Steps to Configure Magento Rewards in Adobe Commerce

Step 1: Enable Reward Points Feature

1. Navigate to the Magento Admin Panel.
2. Go to Stores > Settings > Configuration.
3. Under the 'Customers' tab, locate "Reward Points".
4. Set 'Enable Reward Points Functionality' to "Yes".
5. Set 'Enable Reward Point Functionality on Storefront' to "Yes".

Step 2: Configure Reward Point Settings

In the 'Reward Points' section, configure the following:

• Customers May See Reward Points History: Set this to "Yes". This step enables customers to view a detailed history of their reward points. It displays each 'accrual', 'redemption', & 'validity' of Reward Points in the account dashboard.

• Reward Points Balance Redemption Threshold: Customers must meet a 'basic point balance'. It lets them redeem their points for orders.

• Cap Reward Points Balance At: Customers must not earn more than the set 'max' points balance.

• Reward Points Expire in (days): Set this option to denote the 'lifetime' of the reward points in days. Each batch of points earned during separate activities has an independent lifetime. Leave blank for no validity period.

• Reward Points Expiry Calculation: Use this option to set how reward points expire. Options include:

  • Static: Determines the remaining lifetime of reward points based on the "no. of days" set in the configuration. Changing the 'duration limit' does not affect the validity of existing points.
  • Dynamic: Calculates the "number of days" remaining whenever the reward point balance increases. If the 'validity limit' changes, the system updates the duration for existing points.

• Refund Reward Points: Set this to "Yes" to refund available reward points in an automatic way.

• Deduct Reward Points from Refund Amount: Set it to "Yes" to void the earned reward points on the order refund.

• Landing Page Store: Set this to specify the 'CMS page' that explains your reward points program.

Step 3: Set Reward Exchange Rate

1. On the Admin sidebar, go to Stores > Other Settings > Reward Exchange Rates.
2. In the 'Reward Exchange Rates' section:

• Website: Set this option to the "sites" where the reward exchange rate applies.

• Customer Group: Set this option to the "groups" where the reward exchange rate applies.

• Direction: Set this option to one of the following:

  • Points to Currency
  • Currency to Points

3. Enter the "Rate" values according to the 'Direction' setting, such as:

• Points to Currency: Enter the "no. of points" in the 'first Rate field' and the "monetary value" of points in the 'second Rate field'.
• Currency to Points: Enter the "monetary value" in the 'first Rate field' and the "no. of points" in the 'second Rate field'.

Step 4: Set Actions for Acquiring Reward Points by Customers

In the 'Actions for Acquiring Reward Points by Customers' section:

• Checkout: Set the value of this option to "Yes" to determine if you have earned reward points for purchases.

• Registration: Set the value of this option to specify the "no. of points" earned for opening a customer account.

• Newsletter Signup: Set the value of this option to specify the no. of points earned by registered customers who subscribe to a newsletter.

• Converting Invitation to Customer: Set the value of this option to specify the no. of points earned by a customer who sends an invitation. You can earn these points when the recipient opens a customer account.

• Invitation to Customer Conversions Quantity Limit: Set it to limit the "no. of invitation conversions" that you can use to earn points. Leave blank for no limit.

• Converting Invitation to Order: Set the "no. of points" a customer earns for inviting someone who places their first order.

• Invitation to Order Conversions Quantity Limit: Set the value of this option to limit the "no. of order conversions" that can earn points for the person who sends the invitation.

• Invitation Conversion to Order Reward: Set how customers earn points from invitee purchases. Options include:

  • Each: Customers receive reward points for each invoiced order placed by the invitee.
  • First: Customers earn reward points only for the first invoiced order from invitees.

• Review Submission: Set the value of this option to determine the "no. of points" earned by a customer who submits a review that gets approved for publication.

• Rewarded Reviews Submission Quantity Limit: Set the value of this option to limit the "no. of reviews" that you can use to earn points per customer. Leave blank for no limit.

Step 5: Manage Customer Points and Balances

1. Navigate to Customers > All Customers.
2. Select a customer to view their account information.
3. Go to the 'Reward Points' tab.
4. Adjust "balances", add or subtract "points", & view the customer's "points history".

Step 6: Test Your Configuration

Before launching your reward points program:

1. Test earning and redeeming points per your settings.
2. Place test orders, subscribe to newsletters, or perform other actions to earn points. Then, attempt to redeem those points.

Step 7: Promote Your Reward Program

1. Develop marketing materials & campaigns to educate existing & prospective customers about your rewards program.
2. Highlight the program's participation benefits on your website, in newsletters, & via social media.

Step 8: Schedule and Adjust

1. Review your reward points program's performance daily to ensure optimal results.
2. Collect customer feedback and adjust your program as needed.

Latest Trends in Magento Reward Points Programs

Trend	What It Means for Magento Reward Points Programs	Why It Matters for Your Store
AI-Driven Personalization	Magento reward points programs use AI. It enables businesses to customize offers, rewards, and earning rules for each customer. Adobe Commerce supports this with flexible earning rules and analytics integrations.	Personalized rewards drive higher engagement and conversion.
Gamification Elements	Add levels, badges, and challenges to your Magento reward points program. Tiered rewards and achievement-based incentives encourage shoppers to return.	Gamification triggers repeat visits and bigger basket sizes.
Omnichannel Integration	Earn and redeem Magento reward points across online, mobile, and in-store channels. This flexibility enables you to create a smooth loyalty experience.	Customers expect to use points everywhere. Omnichannel keeps them loyal, regardless of where they shop.
Live Analytics & Dashboards	Use real-time performance data on your Magento reward points program. Tweak rules, offers, and campaigns based on what’s working.	Data-driven decisions lead to higher ROI. You see what’s working and double down fast.
Social Responsibility Rewards	Let customers redeem Magento reward points for charitable donations or eco-conscious actions.	Rewards focused on social impact appeal to modern consumers and foster brand goodwill.
Flexible Earning & Redemption	Reward points for more than purchases include reviews, referrals, birthdays, inactivity, & social shares. These points provide full control over rules, tiers, and point validity.	More ways to earn and spend mean more reasons to stick with your store.
Tiered Loyalty Programs	Create unlimited higher tiers to earn more points, better perks, and exclusive offers.	Tiers drive status-seeking behavior and bigger spending.
Referral & Social Sharing Boost	Reward referrals and social shares with points. Automated notifications and clear program information keep customers informed and up to date.	Referral rewards turn satisfied customers into brand advocates.

FAQs

1. How can loyalty points benefit my e-commerce business?

Loyalty points encourage customers to engage more with your store. They help drive repeat purchases/enhance customer retention/increase the average order value. Offering reward points enables users to earn points for every action they take. The process encompasses registration, purchases, motivating loyalty, & improving the shopping experience.

2. What are the key features of Magento's reward points module?

Magento's reward points module works with your eCommerce ecosystem. Customers can earn points for various actions & redeem those points for future purchases. The platform includes extensive backend management tools for analyzing the program's impact. It also offers modern extensions that provide live analytics and omnichannel functionality.

3. Can customers see their reward points history and manage their points?

Yes, customers can view their entire reward points history from their account dashboard. They need to enable this feature to do so. It includes details on how or where you earn points, how you spend them, & any adjustments to the points amount. Magento makes it easy for customers to manage their points & plan how they might want to use them in the future.

4. Are there extensions available to optimize the Magento 2 Reward Points program?

Third-party extensions enhance the functionality of Magento 2's loyalty program. These extensions can add advanced features such as tiered rewards and referral bonuses. They offer social media engagement rewards, gamification elements, AI-powered personalization, & more detailed analytics.

5. Can I set different earning & spending rules for specific products or categories?

Yes, Magento allows you to define custom rules for earning & redeeming points. You can set these up for specific products/categories/order values. This flexibility helps you promote certain items or encourage higher spending. It also offers more points for targeted purchases.

6. How does the tiered loyalty system work in Magento?

Magento supports tiered loyalty programs. Customers move between levels based on their spending or activity. Each tier can offer different rewards or point multipliers. This flexibility helps motivate customers to increase their engagement and reach higher levels.

7. Can I run limited-time promotions or bonus point events?

Yes. You can create time-limited promotions that offer extra points for specific actions. These promotions enhance engagement during special events, such as holidays/sales. They also help boost engagement & encourage customers to shop within the promotional period.

Summary

Magento Reward Points in Adobe Commerce build customer loyalty and retention. The system rewards customers & creates a personalized shopping experience that encourages repeat visits. Following the steps outlined in this tutorial will help you:

• Encourage customers to take action, from making purchases to sharing on social media.
• Enjoy the ease of adding the rewards system within your eCommerce platform.
• Allow customers to manage their points through their accounts.
• Drive participation in your rewards program with targeted promotions.
• Expand your rewards program with third-party extensions.
• Use current trends, such as AI personalization & gamification, to enhance engagement.

Consider a managed Magento hosting plan to handle your rewards & loyalty program.

[Updated on June 13, 2025]