Loyalty Program

What this solution does

Almost everyone implements a loyalty program, yet no standard report reveals whether it pays off. Points are accrued, obligations to customers grow, but no report answers the simple question: did we earn a profit or just give away a discount?

This solution provides a precise numerical answer.

The "What the Program Delivered" report is the reason to implement the solution.

It compares two groups over the same period: customers with a card and those without. It analyzes the share of those who returned for a second purchase, the average check size, and total revenue. The difference between the groups is the answer.

Separately, it calculates the total amount of accrued but unspent points. This is a liability for the store that must be known in advance. The true cost of the program is defined not by accrued points, but by those actually redeemed. As long as points remain on accounts, they cost the store nothing.

Points for purchases

Points are calculated as a percentage of the order, with specific rules for categories and items, and a higher percentage for top tiers. There is a delay between accrual and the ability to use them: if an item is returned, the points for it have not yet been spent or transferred.

Payment with points from the cart

The loyalty module allows customers to see the available points balance converted to monetary value. The limit is determined by the order share, minimum order amount, and the customer's current level. The server calculates the allowed amount upon saving the order, updating the form field instantly. Spent points reduce the price of individual items rather than appearing as a separate payment line, ensuring the receipt is calculated based on the actual amount paid by the customer and eliminating issues with the cash register.

Loyalty levels increase automatically based on the total spending over a period. Higher levels result in a higher points accrual rate and a larger portion of the order that can be covered by points. Customers receive a notification when their level is upgraded; this is the only email in the program that readers enjoy.

Points have an expiration date, with the oldest points being deducted first. A reminder is sent a few days before expiration, detailing the number of points that will be lost and the specific date. Silent expiration of points without warning is a reliable way to lose a customer along with their money.

The functionality includes a friend referral feature.

The personal account includes a referral link and a QR code card. Points are awarded to both parties only after the invitee has paid for the order. Bonuses are granted only if the inviter and invitee are different individuals: a user's own code is invalid, and only one link is allowed per invitee. A minimum order amount applies, and matching addresses are treated as a sign of fraud.

Principle of honest accounting

The balance is not stored in a mutable counter but is calculated from transaction entries. Each operation is recorded as a new line in the journal rather than modifying an existing one, ensuring a clear audit trail for every point movement. When goods are returned, points are restored to their original batches with their initial expiration dates. This prevents the artificial extension of point validity at the store's expense.

Operations on a single account are processed sequentially. This is essential to prevent a scenario where a customer placing two orders in separate tabs simultaneously spends the same points twice, forcing the store to cover the cost of the second discount.

The loyalty module does not replace standard shopping cart discount rules. Cart discounts are calculated for the current order, while this module manages a customer's personal account that persists between orders. These systems can operate in parallel without conflicts. The module does not support the sale of certificates and does not send general marketing newsletters. Notifications are sent only regarding account-related matters: point expiration, loyalty level upgrades, or point accrual.

Version 1.0 Limitations

Each customer has access to only one account, and only one currency for point accrual is supported. Integration with Apple Wallet and Google Wallet is not available in this version; instead, a card with a QR code is provided within the user's personal account. Support for cash registers and offline points is not implemented; the module operates exclusively within the online store.

Environment Requirements

— 1C-Bitrix: Site Management with the 'Online Store' module installed;

— PHP version 8.2 or higher;

— MySQL 5.7 or newer, MariaDB 10.3 or newer, or PostgreSQL (for PostgreSQL, the main module version 23.900.900 or newer is required);

— Functional agents (cron execution is recommended): these handle point expiration, loyalty level recalculation, and notification sending.

General iT can take care of implementing “Loyalty Program”, including installation, configuration and result verification.