Points as a discount: what it costs you and what it brings in
Letting members save up for a discount can work, if you know in advance what a point is worth, where it can be used, and up to what limit.
In the app, points are first and foremost a way to make progress visible: a level, a streak, a leaderboard. A gym can go a step further and make points worth money. That’s a choice with consequences, and it’s better to think them through in advance.
You decide what a point is worth. If you turn it on, your members save up a balance they can redeem. You choose the value of a point. If it’s off, points only count towards level and rankings.
What members earn it with. Training, classes, running and habits, if you turn that on. Or only a successful referral, if you only want to reward recruitment. The first rewards loyalty, the second growth. You can do both.
Where they spend it. In your shop, on the monthly fee, or to top up when your business’s AI credit has run out. Every place you turn on affects your revenue: a discount on the monthly fee means a lower direct debit.
Set a limit. The maximum percentage of an amount that can be paid with points. Without a limit, an order can be paid for entirely with points, and then your shop has become a gift shop.
What’s outstanding is a liability. Points your members still have are discount you still have to give. The dashboard shows that amount, and it’s not revenue but something you owe. Look at it the way you look at outstanding gift cards.
Referrals without abuse. Points for a referral only come after the newcomer’s first payment, a code only works in their first thirty days, and nobody can invite themselves. That stops you giving away discounts to accounts that never become members.
Prefer to reward people yourself? That’s fine too. Keep track of the referrals and give a free month or a shirt yourself. Sometimes a personal thank-you is worth more than a balance in an app.
