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Why Should You Have a Reward Points System for Magento 2 Store?

Store owners always want to improve customer loyalty indicators because this measures customers’ willingness to return to a company to conduct some activity due to the tremendous and delightful experience with the brand.


Promoting customer loyalty can help you grow your business faster than the traditional marketing strategy. However, turning clients into your brand loyalist is not an easy task. So, it should have a strategy to incentivize customers to buy from your store repeatedly.


Building an effective reward points system is one of the ways to increase your customer loyalty indicator. This post will show you the overview of the reward points system and tips to create a useful one for your own stores.



Table of contents:

What is a reward points program?

Why the reward points program is an indispensable tool for Magento 2 stores?

5 Tips for building an effective reward points system on Magento 2 stores



What is a reward points program?

A reward points program is the most common form of a loyalty program, designed to encourage customers to purchase more or use the service by rewarding them with specific action points. This marketing strategy makes customers frequently engage with your brand.

Customers can use the earning points as a discount or one of the payment methods during their purchase. Business doers can create various reward points campaigns to attract more participants. They can perform some desired actions to get more points like referring to friends, social sharing, and writing reviews.

Why the reward points program is an indispensable tool for Magento 2 stores?

When you search for your brand name in Google, does your website show up in the search results? If the answer is no, there might be an issue with your indexation. As far as Google is concerned, if your pages aren’t indexed, they don’t exist — and they certainly won’t be found on the search engines.

✔️  Enhance customer loyalty

Customer loyalty is one of the essential factors to enhance your store revenue and achieve sustainable growth. This measures customers’ willingness to come back to your store and purchase more products. This is the reason why all stores want to improve the customer loyalty indicator because they know that the higher number of customers returning, the more profit they will generate. 


Building a reward system can keep clients in your store instead of switching to your competitors. Most businesses use the reward points program to engage and retain their customers. It is not a new method, but it has proven to be consistently effective. 


Rewarding points to your customers is a way to say thanks for their purchases. They can use these points for their next purchase to encourage them to go back and take some action to get more points. Their relationship with your store becomes close, which helps you achieve your target customer loyalty indicator.

✔️  Boost revenue and conversion rate

When customers know that they are receiving a good deal and excellent service, they will reward your company with a faithful business. They will share this good experience with their friends and family, which promotes positive word-of-mouth advertising. 


Satisfied customers will often recommend your business to people they know, which is an excellent form of free advertising. It will enhance the traffic to your store. Potential customers can visit the site and learn more about your company and its services, which can increase your conversion rate.


A strong loyalty program encourages existing customers to return and motivates them to spend more money at your store. By retaining key customers, stores will increase their repeat purchase rate. Besides, clients nowadays have various choices when they want to buy something. So they are often hesitant to place an order because of doubts about quality or pricing. They want to research more information before making a genuine purchase.

However, it can erase their hesitation and fasten their purchase decision by offering them some benefits, such as discount coupons and reward points. They know that the more they purchase, the more they get. So, they will not hesitate to click the place button. 


The number will show in more detail, according to Forrester Data Consumer Technographic.


  • 78% of customers believe that loyalty program save their money
  • 60% agree that the loyalty program influences where they make purchases
  • 48% decide what they will buy based on the loyalty program.


If store owners apply an effective reward point system in their loyalty program, they will have more chances to increase their sales and conversion rates.

✔️  Attract new customers and retain existing ones

Rewarding creates a connection that involves emotion and makes customers more satisfied, and they will come back to purchase at your store. People often feel wasted if they do not use all the reward points they have. Therefore, they will often return to the store many times to collect more points and use it before it expires. This is a binding bond that helps your existing customers come back more and buy more.


 Word of mouth has a significant influence on potential customers’ purchase decisions. According to the research by Invespcro, 90% of people trust and buy from a brand recommended by a friend. Your existing customers definitely introduce your items to their friends or family if they know that they will be rewarded with several points. 


You will have a significant number of new customers referred by your existing consumers. And it will increase five times more sales than a paid media impression as nearly 88% of clients will place the highest level of trust in word-of-mouth recommendations from people they know. 

✔️  Make customers more satisfied during their shopping journeys

Customers always love to be considered as a particular person. Rewarding them loyalty points on specific occasions such as customer’s birthdays, major holidays, etc. will express how much you care about them. Building a smart reward points system that reminds customers about the extra benefits they will receive will bring a wow experience. Eventually, your customers will be delighted and stick to your brand. They will become your advocates, too.

✔️  Expand brand awareness and differentiate your business from competitors

Word of mouth is the most effective way to advertise your business brand to more customers.
Besides, people nowadays use social media to communicate on the internet. The rapid expansion of social media brings an opportunity for online stores to spread brand awareness. By clicking the share button, your existing customer can deliver your products, services, and brand images to potential ones without a massive marketing budget.

5 Tips for building an effective reward points system on Magento 2 stores


Having an effective reward points system is indispensable for any business, especially for online stores. Although Magento 2 provides shop admins many features of reward points in the Enterprise edition. However, you can enhance the functionality of the reward points system by integrating a third-party module. Finding a suitable extension that provides an excellent reward points program allows you to optimize this system’s benefits. 


We would love to recommend the five tips below to attract more customers by enhancing your reward points system. 

1. Make participation a simple process and easy to use

If the enrollment and using your reward points program is too complicated, customers often refrain from it. Therefore, making the registration process of your program with as few steps as possible is necessary. The easier the enrollment process is, the higher number of customers that participate in the rewards program.

Besides, creating satisfaction for the participants while using your reward points program is also crucial. You can differentiate your loyalty points program by adding or making some new features.


For instance, creating points spending sliders instead of putting the number of points that they want to spend can help customers use their points easier and enhance their shopping journey.

2. Create unlimited earning and spending rule to make the reward points program flexible

A flexible Magento 2 points system with various earning and spending rules based on customer groups or product attributes can help you optimize your loyalty campaigns.

Not all customers spend the same amount on your online store. By separating your offerings to different customer groups, you can encourage them to purchase more to obtain a higher level. Besides, if you want to promote a new product or specific services, you can grant more points for this. Customers may be willing to try to get more points in their accounts. 


Having various earning and spending rules helps you make customers satisfied without influencing the profit. Clients who purchase many high-value products will be happier to get more points in their accounts. The other can find it reasonable to get lower points.

3. Enhance the user experience with the personalization

Differentiating your business from other competitors is the concern of all store owners. In today’s fiercely competitive market, many Magento stores provide similar reward points to make customers bored. 


You can offer shopping doers personalized experiences to make them feel impressed and interested whenever they visit your online store. Customizable reward points with eye-catching labels can attract more customers. 


They can build their personalization by many elements of your reward points program. It will help them feel more satisfied and have enjoyable shopping experiences at your store. 

4.Allow customers to use their reward points as the payment method

One of the encouragement to collect points is that customers can spend these loyalty points to purchase for their next orders. Allowing clients to use their reward points to redeem while purchasing or using as one of the payment methods is a necessary feature of the reward points program.

Admin can also set some specific products to selling by points so customers can use their available balance points to purchase these items. You can apply this method for new products so customers will take a chance to try it, which can promote your items faster.

5. Engage with consumers by rewarding them with multiple behaviors

Rewarding customers points to their accounts on special occasions such as birthdays, anniversaries, and holidays can make customers feel delighted. It will help increase the engagement between consumers and your store. 


Moreover, you can give customers points when they sign up, subscribe to newsletters or leave reviews, and share on social channels. This is the best way to spread your brand recognition.


Users can track their transactions and point balances on their accounts anytime. Sending emails to inform participants about news and expired points is a great way to engage with them. Besides, you also need to provide them with prompt assistance via live chat, emails, telephone, and so on regarding the reward points program.


To sum up, having an effective reward points program is one of all store owners’ concerns. You should use a plugin to simplify the process and save time when you create the loyalty program. Mageplaza Reward Points for Magento 2 is a recommended extension that helps business doers a lot to make the reward system more comfortable to use and attract more participants.


  • Partner With Us: Let’s discuss how MageCloud team can help to grow your eCommerce business. 


In the final thoughts, building a reward points system is one of the critical steps in your customer loyalty strategy. By investing time and effort in creating an effective reward points program, you can convert and encourage consumers to open their wallets more to your store.


If you are running a Magento 2 shop, I hope this blog will give you some useful ideas to make an outstanding reward point system.



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