We are starting a reward points program on our site which has the following rules:
- Customers can earn 10% cashback on their purchases in the form of reward points. if they buy $100 worth of products they get $10 in the reward points that they can redeem upon checkout.
- We have limited this so that the cashback they receive can only be redeemed in increments of $5 off per $50 spent. So if they are buying $110 worth of products they can apply up to $10 off in reward points if they have enough.
- If they try to use a coupon code or additional discount they cannot redeem these rewards
- Rewards have an expiration of 2 years
Do you guys think this is a fair program? The main point i am concerned about is putting a limit on the redemption that they have to spend a certain amount to redeem ($5 off for every $50 spent). I want to avoid customers who get upset about this.
We used to have a rewards program where they didnt have to spend a minimum, but customers ended up just using their points on purchases and I had to take a loss on shipping and fulfillment costs.