Also called reward points, loyalty programme, membership points
A loyalty points programme gives customers points for what they spend, which they can redeem later as a discount. Many shops also use tiers, where customers who spend more get a better earning rate or extra benefits. Points are tied to the customer's phone number or membership, so they can be used on the next visit.
Points cost money, even if it does not feel like it at the counter. Every point redeemed is a discount, so the rate has to fit your margin. Points should also not stack with every other offer, or a single bill can end up sold below cost.
A shop gives 1 point per ₹100 spent, and each point is worth ₹1 when redeemed. A customer spending ₹6,000 a month earns 60 points, a 1% reward. On a product with a 12% margin, that is affordable. On a 4% margin item, it is a quarter of the profit. Kownt X supports spend-based tiers with points to earn and redeem.