Redemption matrix

This topic explores common loyalty program scenarios.

The following table illustrates the typical use of collection and redemption types in one loyalty system. The symbol “X” signifies a common scenario while “?” indicates that though such scenario is possible, it may be less frequently used.

For example, while collection points based on purchase price and redeem them as a discount (PP+ $D) is the typical scenario, awarding points for the quantity of specific purchased items and then rewarding them with a generic discount coupon (QP+$C) is less common.

Note that Percent reward types (%D and %C) are by nature prone to abuse (i.e., when a customer acquires points on smaller purchases but then applies the % reward to a large purchase), so they have to be used with caution.

In the same way, the coupons generally must be activated at some date in the future from the issuing date. Otherwise, the shoppers may be tempted to request immediate adjustment of the last transaction with their new coupon.

	Price Points (PP)	Basket Points (BP)	Quantity Points (QP)
Dollar Discount ($D)	X	X	?
Percent Discount (%D)	?	?	?
Offset (O)	X	X	?
Coupon ($C)	X	X	?
Percent coupon (%C)	?	?	?
Offset Coupon (OC)	X	X	?
Reward Item	?	?	X

where X means "definitely use", and ? means "possibly use in certain scenarios".