Running a loyalty program often feels like walking a tightrope. On one side, you want to make rewards attractive enough to keep customers engaged. On the other, you need to make sure those rewards don’t eat into your margins.
Many merchants hesitate to launch or expand loyalty programs because they worry: What if customers redeem too much and I lose money?
That’s where redeeming rules in Flits come in. These rules give you the flexibility to define exactly how points can be redeemed, helping you protect profits while still delivering a rewarding customer experience.
Why redeeming rules matter
Every loyalty program looks simple at first. Customers earn points, redeem them, and come back for more. You might even think the risk is limited since each customer can only earn so many points.
But redemption is where things can get tricky.
If your catalog has lower-priced products, customers might use their points to cover the entire cost, walking away without paying anything. Without rules in place, this can quickly spiral out of control, as multiple customers might do the same.
Picture a customer redeeming their full balance on a small order, or shoppers during a big sale stacking points on top of heavy discounts. Suddenly, what was meant to drive loyalty ends up cutting into your margins.
In these cases, loyalty stops being a tool for growth and starts becoming a financial risk. Instead of driving sustainable revenue, your program might quietly eat into profitability.
That’s where redeeming rules make the difference. They act as the framework that keeps rewards attractive for customers while ensuring they stay healthy for your business. Done right, redeeming rules strike a balance: customers still feel valued, but you stay in control of how and when those rewards are used.
Flits builds these controls directly into its loyalty program. With redeeming rules, you can:
Encourage customers to place higher-value orders
By setting minimum cart thresholds or tiered redemption options, you motivate customers to increase their order size before they can redeem points. This not only boosts average order value but also drives more meaningful purchases.
Control how many points are used in each purchase
With maximum redemption limits and cart-based rules, you decide exactly how many points a customer can redeem per order. This prevents points from being overused on small purchases while keeping the program rewarding.
Prevent points from being misused during heavy discounts
No-stacking rules stop customers from combining loyalty points with sales or discount codes. This protects margins during promotions and ensures that your loyalty program complements, rather than undercuts, your pricing strategy.
Keep your margins safe without compromising customer delight
Redeeming rules let you balance customer rewards with profitability. Customers still feel appreciated and incentivized, but your business doesn’t bear the cost of uncontrolled redemptions.
In other words, redeeming rules are what transform a loyalty program from a simple “giveaway” into a profitability tool. They let you reward your customers strategically while keeping your bottom line healthy.
Current redeeming rules in Flits
Once you understand why redemption controls matter, the next step is knowing how to put them into action. That’s exactly what Flits makes simple.
Instead of giving customers unlimited freedom to redeem points however they want, Flits gives you flexible redeeming rules you can customize to fit your business model. These rules ensure your loyalty program drives repeat purchases without putting margins at risk.
Here are the rules you can set up today:
- Cart range–based redemption
What it does
Merchants can configure redemption rules that vary depending on the customer’s cart value. This gives flexibility in defining how points can be redeemed across different spending brackets.
For each cart range, merchants can decide whether customers redeem:
- Fixed points (e.g., 100 points between ₹500–₹999)
- Percentage of cart value (e.g., 10% of the cart value for carts above ₹2000)
Why it matters
- Encourages customers to add more items to their cart to qualify for a higher redemption tier.
- Prevents customers from redeeming points on very low-value carts, which can dilute the perceived value of the program.
- Creates a structured reward system that motivates higher average order values (AOV).
Use-case
A fashion brand structures redemptions like this:
- ₹500–₹999 → redeem 100 points
- ₹1000–₹1999 → redeem 200 points
- Above ₹2000 → redeem 10% of cart value
This setup pushes customers to spend more so they can unlock higher rewards, effectively increasing basket size while keeping redemptions under control.
- Maximum redeem limit
What it does
Allows merchants to set a maximum cap on the number of points that can be redeemed in a single order, regardless of the customer’s total balance.
Why it matters
- Protects profit margins by preventing customers from exhausting their entire points balance in one purchase.
- Keeps redemption predictable for merchants, making the loyalty program sustainable in the long term.
- Ensures a balanced mix of reward and revenue so merchants don’t suffer sudden losses
Use-case
A skincare store sets a maximum redemption limit of 500 points. Even if a loyal customer has 5000 points, they can redeem only 500 in one order. This keeps the order profitable while still rewarding the customer.
- Avoid stacking with discounts
What it does
Merchants can disable the option of using loyalty points together with other discounts, coupon codes, or promotions.
Why it matters
- Prevents excessive discounting, which can significantly cut into margins, especially during big campaigns.
- Protects merchants during high-volume sales events where customers might otherwise stack loyalty rewards with seasonal offers.
- Keeps the loyalty program aligned with profitability goals while still offering value.
Use-case
During a festive sale, a customer tries to combine a 20% discount code with points redemption. Since stacking is disabled, the customer must choose between the discount or using points. This ensures the brand doesn’t take a double hit on profit while still maintaining an attractive offer.
- Expiry dates
What it does
Merchants can assign an expiration period to earned loyalty points, ensuring they must be used within a specific timeframe.
Why it matters
- Prevents loyalty points from becoming a long-term liability on the merchant’s books.
- Creates urgency for customers to make repeat purchases before their points expire.
- Encourages continuous engagement with the brand, reducing customer inactivity.
Use case
A gourmet food store sets a 6-month expiry on earned points. A customer who accumulates 300 points in January must redeem them by June. This pushes customers to place another order sooner rather than later, driving repeat sales while avoiding unused point buildup.
Use-case
A beauty brand sets points to expire after 6 months. Customers return to use points, increasing repeat purchase rate, while unredeemed points eventually clear, reducing long-term liaility.
Flits client data for redeeming rules vs profitability
Client name: Arata
Take Arata.in, a brand that uses Flits to keep their loyalty program both engaging and profitable. Customers earn 1% points on every order, along with small perks like birthday and referral points. On the redemption side, points can only be used when the cart value is at least ₹1, with a cap of 10,000 points per order.
In just the last 60 days, Arata’s analytics show the impact of this setup: customers earned over ₹990k in points, but redeemed only ₹190k points. More than 74,000 orders earned points, while just 7,800 orders redeemed them. The result? Customers feel rewarded, yet the majority of orders continue to bring in healthy revenue.
By capping redemptions and tying them to cart value, Arata encouraged higher order sizes and avoided the risk of customers wiping out small carts entirely with points. Their approach is a clear example of how redeeming rules can strike the right balance between customer delight and profitability.
Client name: Carbone empresas
Take Carbone, a brand that uses Flits to keep its CarboneCash loyalty program both rewarding and sustainable. Customers earn 5% CarboneCash on every order, along with added perks like birthday bonuses and referral rewards. On the redemption side, CarboneCash can only be redeemed online, requires a minimum balance of $20, and expires at the end of the year.
In the past 60 days, Carbone’s analytics highlight how this structure plays out: customers earned over $1,039,553 worth of points, but redeemed only $80,071. More than 10,120 orders accumulated points, while just 1,025 orders actually redeemed them. The majority of points—over $500,503—expired or were removed, protecting margins while still keeping customers engaged.
By tying redemptions to a minimum threshold and expiry date, Carbone ensures that customers feel rewarded without over-discounting small purchases. Their approach is a strong example of how clear earn-and-redeem rules can balance customer delight with profitability.
Coming Soon: Even more flexible redeeming option
Flits is adding new redemption types to give you more control over how customers use their points:
Fixed amount redemption
Customers can redeem points to get a fixed discount on their entire order. Simple, predictable, and easy to manage.
Incremental redemption
Customers can redeem points for a discount that increases in increments. This encourages ongoing engagement and repeat purchases.
Percentage off
Customers can redeem points to get a percentage off their cart value. Ideal for larger orders and encouraging higher spend.
Free shipping
Customers can use points to avail free shipping. A cost-effective way to reduce cart abandonment.
Free product
Customers can redeem points to claim a free product. This helps promote specific items while rewarding loyalty.
These upcoming features give you more flexibility to create loyalty programs that excite customers while keeping profits intact.
How to Get Started with Redeeming Rules
Setting up redeeming rules in Flits only takes a few minutes, but the impact on your profitability can be long-lasting. Here’s a simple approach to get started:
Step 1: Review your current redemption settings inside Flits
Look at how points are currently being redeemed. Are customers redeeming too freely? Are margins being impacted? Understanding your current setup is the first step.
Step 2: Review cart ranges and maximum points limit
Start with the basics. Set up cart range rules and a maximum points limit per order. This gives you immediate control over redemptions without making your setup complicated.
Step 3: Track the results in analytics
Use Flits analytics to monitor redemption behavior, average order value, and repeat purchases. Adjust your rules over time for the best balance between customer satisfaction and profitability.
Conclusion
Loyalty doesn’t have to come at the cost of profitability. Without the right controls, rewards can feel like an expense that eats into your bottom line. But with redeeming rules in place, you’re in full control of how points are used.
Flits makes it possible to reward customers responsibly while keeping your margins intact. Instead of fearing redemptions, you can design them to encourage larger orders, repeat purchases, and healthier profits.
This is what sets Flits apart, it’s not just a loyalty app, it’s a profitability tool.
Set your redeeming rules today and turn your loyalty program into a profit engine
