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  4. How Redemption Works

How Redemption Works

Here’s the satisfying part of running a loyalty programme: watching customers cash in their hard-earned points for real money off their order. Redemption is the moment all that loyalty pays off — for them, and for you. Think of it like cashing in loyalty stamps for a free coffee. You’ve been collecting them, now it’s time to spend them.

When a customer redeems points, Perkie generates a unique discount coupon and applies it directly to their cart. No copy-pasting codes, no hunting through emails — it just works.

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Why This Matters

Redemption is what makes a points programme feel real to your customers. If earning points is the carrot, redemption is the bite. Without a smooth, obvious redemption experience, customers forget they have points, stop caring about earning them, and your loyalty programme quietly becomes wallpaper.

Getting your redemption settings right also protects your margins. You can control exactly how generous the programme is, cap discounts so they don’t wipe out your profit on a single order, and set minimum thresholds so customers can’t nibble away with tiny $0.50 coupons.

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Redemption Types

First, choose how customers can redeem, under How can customers redeem points? on the Redemption tab:

  • Continuous (the default): any amount of points at your rate, like money in a wallet.
  • Stepped: fixed deals you set up in the Stepped Rewards table, which customers save towards.
  • Both: either way.

Then choose what points can buy. Perkie supports three redemption types, each switched on or off on the same tab, so you offer the ones that make sense for your store.

Discount Coupon

The classic redemption: customers convert points into a dollar-value discount applied to their cart. This is the default redemption type and is enabled out of the box. When a customer redeems, Perkie generates a unique coupon code and applies it automatically. You control the conversion rate, minimum balance, and maximum discount percentage.

Free Shipping

Customers spend a fixed number of points to get free shipping on their order. You set the point cost (500 points by default) and choose which shipping method it applies to, or leave it on Any so it covers whichever method the customer picks. At checkout, if the customer has enough points and the qualifying shipping method is offered for their address, a “Redeem 500 points for Free Shipping” option appears. When they click it, the points are deducted and shipping is zeroed out on their order.

This works well alongside discount coupons — a customer might use points for free shipping on one order and a dollar discount on another, depending on what feels like the better deal.

Free Product

Customers redeem points for a product from your store at no charge. You configure which products are available for redemption using include and exclude lists (by product or category), and Perkie calculates the point cost based on the product’s price and your redemption rate. For example, if 100 points = $1 and a product costs $25, it takes 2,500 points to redeem it.

Customers browse available reward products through the [perkie_rewards] catalogue shortcode, or the tab named after your points on individual product pages. When they redeem, the product is added to their cart at zero cost with the points deducted from their balance.

To enable or disable redemption types:

  1. Go to Tracksies > Perkie > Redemption tab.
  2. Under Redemption Types, toggle each type on or off:

– Discount Coupon — on by default
– Free Shipping — off by default
– Free Product — off by default

  1. Click Save Changes.

You can enable all three simultaneously. Each type has its own settings section that appears when toggled on.

Free Shipping and Free Product need a second switch. As well as the toggle on this tab, each one has a matching switch at Tracksies > Settings > Features, and both of those ship switched off. The names are the same in both places, so it is easy to turn one on and assume you are done. If you have set redemption up and nothing appears at checkout, that second switch is the first thing to check.

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Configuring Discount Coupon Redemption

Head to Tracksies > Perkie > Redemption tab to find all of these settings in one place. The settings below appear when the Discount Coupon redemption type is enabled.

Redemption Rate

This is the engine of your programme — how many points it takes to earn $1 off. The default is 100 points = $1. So a customer with 500 points has $5 to spend.

Lower the number to be more generous (50 points = $1 feels like a better deal). Raise it to be more conservative. There’s no universally right answer — it depends on how fast your customers earn points and what margin you can afford to give back.

Minimum to Redeem

This sets a floor on how many points a customer must have before they can redeem anything. The default is 500 points (worth $5 at the default rate). This prevents customers from generating tiny coupon codes for a few cents, which creates clutter and doesn’t feel rewarding to them anyway. A $5 minimum redemption actually makes the reward feel more meaningful.

Maximum % of Cart

This caps how much of the cart a Perkie-generated coupon can cover, expressed as a percentage of the subtotal. The default is 50%. So even if a customer has enough points to cover their entire order, they’ll still pay at least half. This protects your margins and prevents the programme from being gamed on high-value orders. You can raise or lower this cap depending on how comfortable you are with deep discounts.

The cap applies to all Perkie-generated coupons, not only redemption: referral, survey, Special Date and HQ-Based Offer coupons honour the same ceiling. Free product rewards aren’t limited by it. If a fixed-$ referral coupon would otherwise exceed 50% of a small cart, Perkie trims it to the cap at cart-calculation time. Set to 100 to disable the cap entirely (not recommended — the tradeoff is that a single customer could theoretically stack discounts to zero out a cart).

Maximum Discount Amount

A dollar cap on any one rewards coupon, alongside the percentage. The default is 0, meaning no dollar cap.

Coupon Prefix

When a customer redeems points, Perkie generates a unique coupon code like PERKS-SARAH-X7K2. The prefix is the bit at the start — by default PERKS- — so you can immediately identify which coupons came from your loyalty programme. You can change this to match your brand (e.g., REWARDS- or LOYALTY-). Keep it short and memorable.

Unused Coupon Grace

Redeemed coupons don’t last forever. By default they expire 7 days after redemption. This creates gentle urgency: a customer who generates a coupon has a reason to come back soon. You can extend this if you’d prefer a more relaxed programme, or shorten it if you want to drive faster return visits.

When a coupon expires unused

The points that were redeemed for it go back to the customer’s balance, so a customer who forgot to use their coupon doesn’t lose their points. This always happens, and there’s no setting for it.

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Configuring Free Shipping Redemption

These settings appear when the Free Shipping redemption type is toggled on in the Redemption tab.

Point Cost

Default: 500

The fixed number of points a customer must spend to get free shipping on an order. Unlike discount coupons where points convert to a dollar value, free shipping is a flat exchange — the customer pays this many points regardless of what the shipping would have cost.

Set this based on what shipping typically costs your customers. If your average shipping charge is $8 and your redemption rate is 100 points = $1, then 800 points would be “fair value” — but setting it lower (say, 300-500 points) makes it feel like a good deal and encourages redemption.

Shipping Method

Default: Any (zero out customer-selected method)

Leave it on Any and free shipping applies to whichever shipping method the customer picks. To limit it to one method, such as your standard option but not express, select that method here. The dropdown shows the shipping methods configured in your store.

The redemption option only appears when that method is offered for the customer’s address.

How It Works at Checkout

When a customer reaches checkout with enough points and the qualifying shipping method selected:

  1. A button appears showing the point cost, for example Redeem 500 points for Free Shipping.
  2. The customer clicks the button.
  3. Perkie deducts the points and sets the shipping cost to $0 on the order.
  4. The customer completes checkout as normal.

If the cart stops needing shipping, or the customer’s address isn’t offered that method, free shipping comes off the order and their points are returned automatically.

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Configuring Free Product Redemption

These settings appear when the Free Product redemption type is toggled on in the Redemption tab.

Point Cost Calculation

Free product redemption uses your existing Redemption Rate to calculate how many points a product costs. If your rate is 100 points = $1, a $15 product costs 1,500 points. A $50 product costs 5,000 points. The point cost shown to customers always reflects the product’s current price — if you change the price, the point cost updates automatically.

Include Products

Default: Empty (all products eligible)

Restrict which specific products can be redeemed with points. Search and add products by name. When this list has entries, only these products are available for free product redemption — everything else is excluded.

Leave this empty if you’d rather use category-level controls or make all products available.

Exclude Products

Default: Empty

Specific products that cannot be redeemed with points, even if their category is otherwise eligible. Use this for high-margin items, limited editions, or anything you don’t want given away as a reward.

Include Categories

Default: Empty (all categories eligible)

Restrict free product redemption to specific product categories. When this list has entries, only products in these categories are available.

Exclude Categories

Default: Empty

Entire product categories excluded from free product redemption. Products in these categories can’t be redeemed regardless of individual product settings. Useful for sale categories, digital products, gift cards, or subscriptions.

Priority: If a product appears in both the include and exclude lists, the exclude list wins. Same for categories.

The Rewards Catalogue Shortcode

The [perkie_rewards] shortcode displays a browsable catalogue of products available for free product redemption. Each product shows its name, image, price, and the point cost to redeem it.

Shortcode attributes:

AttributeDefaultDescription
columns3Number of columns in the product grid
limit12Maximum number of products to show
category(all)Filter to product category slugs, comma-separated
orderbypriceSort order, for example price, title or date
orderascasc or desc

Examples:

[perkie_rewards]
[perkie_rewards columns="3" limit="6"]
[perkie_rewards category="accessories" orderby="price"]

Place this shortcode on a dedicated “Rewards Shop” page so customers can browse what’s available. Link to it from your loyalty programme communications and the My Account Perks page.

The Product Page Redeem Shortcode

The [perkie_product_redeem] shortcode renders a redemption button on individual product pages. It shows the point cost for that product and lets the customer redeem directly from the product page.

You don’t usually need to place this manually: when free product redemption is enabled, Perkie automatically adds a tab named after your points to product pages for eligible products. The tab shows the point cost and a Redeem button. The shortcode is available if you want to place the redemption option somewhere else on the page using a page builder or custom template.

The Product Page Rewards Tab

When free product redemption is enabled, eligible products automatically display a tab named after your points (for example Points) alongside the standard WooCommerce product tabs (Description, Reviews, etc.). The tab shows:

  • The point cost to redeem the product
  • The customer’s current points balance
  • A Redeem button (if the customer has enough points) or a message showing how many more points they need

This tab only appears on products that pass your include/exclude rules. Customers who aren’t logged in see a prompt to log in or create an account.

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The Customer Experience

Once redemption is configured, here’s exactly what your customers see.

Reward Tiles

Signed-in members see their rewards as tiles under the coupon field in the cart, at checkout, and on their Points & Rewards page in My Account. The coupons they already hold sit under Your rewards, and the stepped deals they can buy with points sit under Spend your points. One click applies a tile.

A tile that can’t be used yet is greyed out and says what’s missing, like Spend $20 more or 50 more points. A coupon that can’t be combined with others asks before it replaces what’s in the cart.

Inline Redemption at Cart & Checkout

The redemption widget appears inline after the coupon field on both the cart and checkout pages. This works with both the classic WooCommerce cart/checkout and the WooCommerce block-based cart/checkout.

  1. The customer adds items to their cart and heads to the cart or checkout page.
  1. An inline Redeem Points widget appears after the coupon field. It shows:

– Their current points balance
– What that balance is worth in dollars (e.g., “Your 1,200 points are worth $12.00”)

  1. The widget shows a button that turns their points into a discount, for example Redeem for $12.00 off. The rewards panel above the classic cart and at checkout offers Quick Redeem amounts of 500, 1,000, 2,000 and 5,000 points, showing only those between your minimum and your maximum discount, plus Redeem All.
  1. The customer clicks the button.
  1. Perkie instantly generates a unique coupon (e.g., PERKS-SARAH-X7K2), deducts the corresponding points from their balance, and applies the coupon to their cart automatically.
  1. The cart updates to show the discount. The customer sees exactly how much they saved.
  1. The customer completes checkout as normal. The coupon is applied to their order.

That’s it. No manual entry, no separate coupon step. The whole experience happens right there alongside the coupon field.

Shortcode Placement

If you want the redemption widget to appear somewhere other than the default cart/checkout position, use the [perkie_redeem] shortcode. It renders the same redemption interface and works anywhere shortcodes are supported — a custom landing page, a sidebar widget, or a dedicated rewards page. The shortcode respects all your redemption settings (minimum balance, maximum discount, coupon prefix, etc.).

Redeeming from My Account

Customers can also redeem points directly from their Points & Rewards page in My Account. The balance card includes a Redeem button — clicking it generates a coupon code that’s shown inline on the page. The customer can copy the code and apply it on their next order, or it’s automatically available in their Pending Rewards section for easy access.

Cancelling a Redemption

If a customer changes their mind after redeeming, they can cancel the redemption from their Pending Rewards section in My Account. Each pending coupon has a Cancel button — clicking it voids the coupon and returns the redeemed points to the customer’s balance immediately. This gives customers confidence to redeem without worrying about locking up their points in a coupon they might not use.

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Common Questions

Can customers redeem partial amounts — like not using all their points?

Yes. The Quick Redeem amounts let customers choose how much they want to redeem. They don’t have to use all their points at once. If they only want $10 off today, that’s fine — their remaining points stay in their balance for next time.

What happens to the coupon if they abandon the cart?

The coupon still exists and is still valid until it expires (or they use it). If a customer generates a coupon and then closes the browser without checking out, the coupon code will work on their next visit — just like any other discount code they might have. Their points have already been deducted, though, so the coupon represents those points until it’s used or expires.

Can redemption coupons stack with other coupons?

That’s Perkie’s Stacking policy, on the Redemption tab under Programme policies:

  • Allow all (the default): rewards, earned coupons and other coupon codes can all be used together, under WooCommerce’s own rules.
  • Block other codes: rewards don’t mix with other coupon codes, though several rewards together are fine.
  • Block all stacking: a reward is used on its own.

Whichever coupon is in the cart first stays, and the customer is told why the second can’t go on.

Can a customer use discount coupon redemption and free shipping on the same order?

Yes, if both types are enabled. A customer could redeem points for free shipping and separately redeem points for a discount coupon on the same order. Each redemption deducts points independently from their balance.

What happens if a free product redemption order is refunded?

The redeemed points are returned to the customer’s balance, just like they are for discount coupon refunds. The product is treated as a standard refund in WooCommerce.

Can customers redeem for variable products (like different sizes/colours)?

Free product redemption works with simple products. The rewards catalogue lists simple products that are in stock and can be bought.

The Rewards tab isn’t showing on a product page.

Check that: (1) Free Product redemption is enabled in the Redemption tab, and the Free Product switch at Tracksies > Settings > Features is on as well. Both are needed, and the feature switch ships off. (2) The product passes your include/exclude rules — if you have an include list, the product must be in it. (3) If the product is in an excluded category, it won’t show the tab regardless of other settings.

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If Something Goes Wrong

The Redeem Points panel isn’t showing up in the cart

First, confirm that the Perkie feature is active — go to Tracksies > Settings > Features and check that Perkie is enabled. Then check the Minimum to redeem setting in Tracksies > Perkie > Redemption tab. If the customer’s balance is below the minimum, the panel will be hidden. Also worth checking: is the customer logged in? Guest sessions don’t have a points balance.

Customer says their points didn’t come back after a coupon expired

Points come back automatically when a redemption coupon expires unused. If they haven’t, check the Unused coupon grace setting in Tracksies > Perkie > Redemption tab. The coupon may not have expired yet.

A redemption coupon was applied but then the order was refunded — what happens to the points?

Points the customer spent on the order come back when it’s refunded, in the same share as the money refunded, or all of them if the order is cancelled. That’s the Refund returns points setting on the Redemption tab, on by default. A failed order returns nothing, because its payment can be retried.

Customer is getting an error when trying to redeem

Check that their balance is above the Minimum to redeem threshold. If the issue persists, enabling debug logging at Tracksies > Settings > Debug will give you more detail to work with.

Free shipping redemption isn’t appearing at checkout

Confirm that: (1) The Free Shipping redemption type is toggled on, and the Free Shipping switch at Tracksies > Settings > Features is on as well. Both are needed, and the feature switch ships off. (2) If you’ve picked one shipping method rather than Any, it’s offered for the customer’s address. (3) Something in the cart needs shipping. (4) The customer has enough points to cover the fixed point cost.

The rewards catalogue shortcode shows no products

Check your include/exclude rules. If you’ve set an include list but left it empty by mistake, no products will be eligible. Also verify that the products in your include list (or categories) are published and in stock. The shortcode only shows simple products that are in stock and can be bought.

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Related Guides

  • Points Expiration — how and when earned points expire, plus warning emails
  • Earning Points — earn rates, tiers, multipliers, and how customers accumulate points
  • The Perks Page — the customer-facing My Account page showing balance, history, and tier progress

How can we help?