What is a loyalty program?

How points programs work

A points program sets an earn rate, such as one point per dollar, and a redemption rate, such as 100 points for a $10 discount. Together they set the program's real value: here, a 10 percent return to the customer once they reach the threshold. Points are recorded against the customer's account when an order is paid, and redeemed at checkout as a discount line. Clear rules matter more than generosity. Customers should be able to see how many points they have, what they are worth, when they expire, and what the shop can change.

The rules that apply

Loyalty programs are subject to consumer law. In Australia, the Australian Consumer Law prohibits misleading claims, so the value of rewards, expiry and conditions must be stated accurately. The ACCC's review of customer loyalty schemes raised concerns about points being devalued or cancelled with little notice and about vague disclosure of how member data is used. Because programs collect personal information, the Australian Privacy Principles also apply to businesses covered by the Privacy Act, which means telling members what is collected and why.

When a loyalty program pays off

A program makes sense when customers naturally buy the same things often, such as coffee, pet food, beauty refills or printer supplies, and when the reward is something they value without wrecking margin. It makes less sense for one off purchases, such as furniture, where a referral reward or after sales service builds more loyalty. Start small, with one simple earn and redeem rule, and measure whether members actually order more often before adding tiers.

Common mistakes

The most common mistake is a reward so far away that customers never reach it. Others include changing the rules without notice, which erodes trust and draws regulator attention, letting points expire silently, making redemption hard to find at checkout, and rewarding every customer equally so the program becomes a permanent discount. Collecting more personal data than the program needs is a privacy risk with little upside.

Where it shows up in OneCraft

OneCraft has no ready made store or loyalty program. When a site's brief or chat asks for one, the agent's loyalty guide builds discount codes and loyalty points in the site's own database: points are added when an order becomes paid, redeeming applies a discount line at order time, signed in customers see their points and history on a rewards page, and the admin area lists codes with their usage and has a points adjustment form. Payments run through Stripe Checkout on the owner's connected account, on paid plans.

Questions people ask