With Xtremepush Loyalty, you can reward users with tokens for completing quests, reward rules, achievements and more. Your users can then exchange these tokens for prizes you set up separately, such as a gift card, a cash payout, or any physical or digital reward.
A loyalty economy is where you decide how that exchange works. Under Redeem > Options is where you decide what your tokens are worth, and that's what turns them into a currency instead of just points with no real value.
Liability and Redemption
Before you begin building your Loyalty Economy, it’s worth understanding the following:
Liability: The tokens your users are holding but haven’t spent yet. From the moment a user earns tokens, you owe them whatever those tokens are worth, whether or not they ever redeem them
Redemption: The moment a user actually exchanges tokens for a reward. This is when giving out tokens starts costing you something real, such as a gift card, a cash payout, or a physical or digital item you have to send.
Liability builds up before you pay anything out. If you're not careful about how many tokens you give away, you can end up owing users more value than you planned for, even though you won't feel that cost until they redeem.
Define your economy before you configure rewards
Before you configure quests, reward rules, or redeem options, define your loyalty economy. Start by setting a budget which includes how much you are willing to pay out per user, per month. Use this budget to work out how many tokens a user can earn and what each token should be worth.
Defining your economy up front reduces the risk of over-bonusing, particularly when you configure a currency redeem option, where a mis-set conversion rate can let users redeem more value than intended. For example:
Setting a rate of 1 token = $1 instead of 100 tokens = $1 would let users redeem 100 times more money than you planned for.
Setting a reasonable rate, say 10 tokens = $1, but configuring many reward rules and quests that hand out token rewards, so users end up earning, and then redeeming, far more money in total than you budgeted for.
For the full method, including the formulas and checks to run before you sign off on an economy, see Calculate your Loyalty Economy.
Redeem Option Types
Go to Redeem > Options to see and manage your redeem options, and select Create to add one. Xtremepush supports five types. Each type controls what a user receives when the user redeems tokens.
Type | What the user redeems tokens for | Documentation |
|---|---|---|
Internal rewards | A reward inside your own system, such as more tokens, a quest, or a promotion. | |
Physical | A physical item which Xtremepush passes to your system to fulfill. | |
Digital | A digital item which Xtremepush passes to your system to fulfill. | |
Currency conversion | A cash value, converted from tokens at a rate you define, which Xtremepush passes to your system to pay out. | |
Prizeout | A gift card, through a third-party integration with Prizeout. |