Reward management and Rewardable amount
Managing rewards effectively is key to running a successful loyalty program. This article explores three critical aspects of reward configuration in Growave: Reward management, Rewardable amount calculation, and Additional factors impacting reward calculations.
IN THIS ARTICLE:
Reward management
The Reward Management section in the Growave Rewards program settings lets you control when and how rewards are issued or subtracted based on the financial status of orders. By configuring these settings, you can ensure a fair and accurate distribution of rewards while handling various scenarios like partial refunds or order modifications.
Issuing rewards based on order status
You can configure rewards to be issued when the order reaches one of these statuses:
- Paid: Payment is fully captured, either automatically or manually.
- Partially paid: A portion of the order total is captured.
- Fulfilled: All items in the order have been shipped.
- Partially fulfilled: Some items have been shipped, but not all.
- Authorized: Payment information is verified, but funds aren’t captured yet.
- Pending: Payment is pending due to a non-credit card payment method.
BEST PRACTICE: To ensure rewards are only issued when the payment is secure, selecting Paid or Fulfilled is recommended.
Canceling rewards based on order status
Rewards can be subtracted when the order reaches one of these statuses:
- Refunded: The order is fully refunded.
- Partially refunded: A portion of the order is refunded.
- Voided: The order is canceled before payment.
IMPORTANT: When the Partially refunded setting is disabled, rewards remain unchanged for partially refunded orders. No adjustments or revocations are made, even if the refund reduces the order value below the qualifying amount for rewards.
RECOMMENDATION: Enable the Partially refunded setting to ensure accurate reward allocation. This ensures that rewards are recalculated or reduced based on the new order value, maintaining fairness in the rewards program.
Rewardable amount
The Rewardable amount is the portion of the order total eligible for earning rewards. You can configure this amount to include or exclude various components like discounts, gift cards, taxes, and shipping.
- Exclude discounts: Rewards are calculated on the order total minus the discount.
Example: 1 dollar = 1 point. Order total: $100. Discount applied: $20.
When setting is ON: Rewardable amount: $100 - $20 = $80. Points earned: 80.
When setting is OFF: Rewardable amount: $100. Points earned: 100.
- Exclude gift cards: Gift card amounts are removed from the rewardable total.
Example: 1 dollar = 1 point. Order total: $150. Gift card amount used: $50.
When setting is ON: Rewardable amount: $150 - $50 = $100. Points earned: 100.
When setting is OFF: Rewardable amount: $150. Points earned: 150.
- Include shipping: When selected, shipping fees are included in the reward calculation.
Example: 1 dollar = 1 point. Order subtotal (items only): $80. Shipping fee: $10.
When setting is ON: Rewardable amount: $80 + $10 = $90. Points earned: 90.
When setting is OFF: Rewardable amount: $80. Points earned: 80.
- Include taxes: When this setting is enabled, taxes like VAT are included in the rewardable amount calculation.
Example: 1 dollar = 1 point. Order subtotal (before taxes): $100. Taxes (e.g., VAT): $15.
When setting is ON: Rewardable amount: $100 + $15 = $115. Points earned: 115.
When setting is OFF: Rewardable amount: $100. Points earned: 100.
NOTE: If Include taxes is disabled, taxes are excluded from the rewardable amount only if taxes are not already included in product prices in Shopify settings.
To review or adjust your Shopify tax settings:
Go to Shopify Settings → Taxes and duties → Global settings.
- Check whether "Include sales tax in product price and shipping rate" is enabled.
- You can also configure tax settings to include or exclude taxes based on your customer’s country in Markets preferences. For more details, refer to Shopify's documentation on these settings.
BEST PRACTICE:
- If your goal is to reward customers based on their actual spending, exclude discounts and gift cards.
- For stores with high shipping or tax costs, including these in the rewardable amount can incentivize larger purchases.
Additional factors impacting reward calculations
Product eligibility setting
If an order includes an item that has been excluded from the Loyalty and Rewards program using the Product eligibility setting, the price of this item won't be included in the rewardable amount.
Refunds and partial refunds
Refunds, whether full or partial, directly affect rewards to maintain accurate calculations and fair customer balances.
- Full refunds: Rewards earned for the order are deducted from the customer’s rewards account based on the Rewardable amount settings described above. If the rewards have already been used, the customer’s balance is reduced but never goes below zero.
- Partial refunds: Rewards are recalculated based on the adjusted order total after the partial refund, also factoring in the settings defined in the Rewardable amount section.
- If unused, rewards corresponding to the refunded portion are deducted.
- If used, no additional rewards are issued for the adjusted total.
NOTE: Discounts applied to fully or partially refunded orders are considered used and cannot be reactivated for customers.
Refunds for order-related actions
Rewards for order-related actions like Place Order, Punch Card, Buy X to Get Y, and Spend X to Get Y are issued based on the configured rewarding settings. If a refund results in the order no longer meeting the conditions for these rules, rewards are reclaimed as follows:
- Place Order: Rewards are reclaimed according to the reward calculation settings, reflecting any changes in the order’s rewardable amount.
- Punch Card: Growave verifies whether the required number of orders has been fulfilled. If not, rewards are reclaimed.
- Buy X to Get Y: Rewards are reclaimed if the refunded order no longer includes the specified product or product from the designated collection.
- Spend X to Get Y: Rewards are reclaimed if the refunded order total falls below the required spend threshold.
Points multiplier
The Points multiplier feature available in Birthday reward, Boost campaign, and VIP Tiers will affect how many points are awarded for a particular order. Only one multiplier will apply, with the following priority order:
- Birthday multiplier: Bonus points for purchases made during the customer’s birthday.
- Boost campaign multiplier: Temporary promotional multipliers for earning extra points.
- VIP Tier multipliers: Extra points based on the customer’s VIP Tier.
NOTE: The Birthday and Boost campaign multipliers apply only to the Place order action. On the other hand, the VIP Tier multiplier applies to any points earned for completing any earning action.
Disclaimer
Due to the complexity of settings and their interdependencies, it is not possible to outline all potential user cases comprehensively. Additionally, certain limitations within Shopify may affect how rewardable amounts, reward issuance, and reward cancellations are handled in specific scenarios.
If you encounter unexpected behavior or need assistance, contact our support team to identify potential issues and find suitable solutions.