Loyalty Program for an Online Store: Points, Settings and Sizing the Reward Against Your Margin
A points loyalty program gives customers back part of what they spend, as a discount on their next order. Set up well, it brings back customers who cost no advertising. Set up badly, it gives away your margin. Everything comes down to one figure: the percentage given back, compared with your margin per delivered order.
In short: first work out your margin per delivered order, give back a small percentage of spend (percentage given back equals points per dinar divided by the points worth one dinar), set a minimum threshold, a cap per order and a validity, and only make points usable once the order is paid.
Why run a loyalty program in an online store?
Every new customer has a cost: ads, samples, time spent in messages. A returning customer already trusts the store, knows the quality and picks up the phone when you call to confirm. A points program gives them a concrete reason to buy again from you rather than from the shop next door.
We quote no sales uplift percentage: the figures that circulate about loyalty programs rarely come from verifiable studies, let alone from the Tunisian market. Measure the effect on your own store instead: the share of orders placed by customers who have ordered before, before and after launch.
| Tool | What it does | When to use it |
|---|---|---|
| Loyalty points | Rewards spending, usable later | Bring existing customers back |
| Coupon | Immediate, targeted discount | Launch a product, re-engage a list, a specific occasion |
| Promotion with countdown | Discount visible to everyone, time-limited | Clear stock, create urgency |
| Pack | Bundle price on several items | Raise the average basket |
Points do not replace the other levers: they work over time, the others in the moment.
How does a points program work?
Five settings describe any program. They are the ones on Yalla Souk’s “Loyalty program” screen, with their default values when you turn it on:
| Setting | What it sets | Yalla Souk default |
|---|---|---|
| Points earned per dinar spent | The earning pace | 1 point per TND |
| Conversion rate | How many points are worth 1 dinar off | 100 points = 1 TND |
| Minimum threshold | The balance from which customers can use their points | 100 points |
| Cap per order | The maximum share of the subtotal payable in points | 50% |
| Validity period | After how many months points expire (0 = never) | 12 months |
With these values, a 40 TND order earns 40 points and 1,000 points are worth 10 TND: customers get back 1% of what they spend. A live preview calculated on an example order shows these figures while you change the settings.
How much can you give back without eating your margin?
The formula fits on one line: percentage given back = points earned per dinar ÷ points worth one dinar.
| Points per TND | Points for 1 TND | Percentage given back | Cost on a 60 TND order |
|---|---|---|---|
| 1 | 100 | 1% | 0.600 TND |
| 1 | 50 | 2% | 1.200 TND |
| 1 | 20 | 5% | 3.000 TND |
| 2 | 20 | 10% | 6.000 TND |
Then compare that cost with your margin per delivered order. Example: an item sold at 60 TND, bought at 30 TND, with 2 TND of packaging and 10 TND of advertising per delivered order, leaves 18 TND. At 2%, loyalty costs 1.2 TND, a fifteenth of the margin. At 10%, it costs 6, a third. Run the numbers with your own figures in the margin calculator; the method is explained in how to calculate your margin and selling price.
Two details lower the real cost: points are only spent by customers who come back, and points that expire cost nothing. Do not count on that to justify an overly generous rate: a loyal customer will use their points.
When should points be credited with cash on delivery?
This is the question specific to cash on delivery: until the parcel is paid, the sale does not exist. Crediting usable points at order time rewards refused parcels too.
In Yalla Souk, the cycle follows the order status:
- Order confirmed: points earned are credited as pending. The customer sees them but cannot use them yet.
- Order completed (delivered and paid): the points become available.
- Order canceled or expired: pending points are removed, and any points the customer used on that order are returned.
- Stepping back a completed order: its points return to pending.
- Manual adjustment: you can add or remove points on a customer’s record, with a reason (birthday gift, goodwill gesture, correction), saved in their history.
The customer record shows the available balance, pending points and the history of every movement: earn, redeem, expire, adjust.
Which redemption rules should you set?
- A minimum threshold avoids micro-discounts. With 100 points for 1 TND, a 500-point threshold equals a 5 TND discount.
- A cap per order protects the margin of a given order. The cap applies to the subtotal after promotions and coupons, and points are used in multiples of the conversion rate.
- A validity period encourages return visits. Announce it on the store and in the order confirmation: a point that expires without warning creates more frustration than loyalty.
- Points on items only. In Yalla Souk, points are calculated on the item amount after discounts, excluding delivery fees.
How do you combine loyalty, coupons, reviews and the newsletter?
| Lever | Role in the customer cycle | In Yalla Souk |
|---|---|---|
| Newsletter (popup or spin wheel) | Capture a contact on the first visit | Sign-up popup, or a wheel that wins a discount code |
| Welcome coupon | Get the first order | Coupons |
| Verified reviews | Reassure new visitors | Reviews reserved for buyers |
| Loyalty points | Bring customers back after the first order | Points program |
Points are not earned on the part already discounted by a coupon, so the welcome discount and loyalty are never paid twice on the same amount. Customers need an account to earn points, which is also a good reason to create one at the first order. Marketing features are detailed on the features page.
How do you launch the program in an hour?
- Work out your margin per delivered order in the margin calculator.
- Choose a percentage to give back that stays a small share of that margin, then translate it into points per dinar and a conversion rate.
- Set threshold, cap and validity, and check the result in the live preview.
- Turn the program on in Settings, Marketing, Loyalty program.
- Announce it: a banner or announcement bar on the store, a message to existing customers, a mention during the confirmation call.
- Measure after three months the share of orders placed by returning customers, and adjust the rate if the margin suffers.
Loyalty is included: the Yalla Souk store is free forever, you pay per order received, from 0.300 TND down to 0.090 TND by volume, with no commission; the first 200 orders are free. See pricing.
Frequently asked questions
What is a points loyalty program?
Customers earn points on every order, in proportion to what they spend, then exchange them for a discount on a later order. It is a deferred discount: it only costs you if the customer comes back to buy.
How many points should you give per dinar spent?
Think in percentage given back, not in points. The percentage given back equals the points earned per dinar divided by the number of points worth one dinar. With 1 point per dinar and 100 points for 1 dinar, you give back 1%; with 20 points for 1 dinar, 5%. Pick a percentage that stays small next to your margin per order.
What percentage can you give back without losing money?
There is no universal figure: it depends on your margin per delivered order. Work it out with the margin calculator, then check that the reward stays a small share of that margin. On a 60 TND product that leaves 18 TND of margin, giving back 2% costs 1.2 TND; giving back 10% costs 6 TND, a third of the margin.
When should points be credited with cash on delivery?
After the cash is collected, not at order time. Otherwise a customer can earn points on a parcel they refuse. In Yalla Souk, points are pending from confirmation and become usable when the order is completed; a canceled or expired order removes its pending points.
Should points expire?
A validity of 6 to 12 months encourages customers to return and stops a debt of discounts from piling up for years. It is not mandatory: in Yalla Souk, setting 0 months makes points permanent. State the rule you choose clearly.
Can points be combined with a coupon?
Yes in Yalla Souk. Points are calculated on the item amount after promotions and coupons, and the redemption cap applies to the remaining subtotal. Customers do not earn points on the part that is already discounted.
Do customers need an account to earn points?
Yes. Points belong to a customer account: only signed-in customers earn them on their orders and can use them at checkout. They find their points history in their account area.
