Introduction
If you are deciding how customers should redeem rewards, start by matching the reward type to your product mix, average order value, and how often customers buy from you.
This guide covers four common reward setups and when each one works best:
Free product redemption
Basic checkout discount code rewards
Minimum-order reward unlocks
Fixed coupon ladders (like $5, $10, $20, $50)
Your reward options in Rivo
From Programs > Points under Redeeming Points, click Add Another Reward to add reward types for your online store.
You can create:
Amount Discount
Percentage Off
Free Shipping
Free Product
✨ Free Shipping and Free Product rewards require access to Advanced Rewards.
1) Free product redemption
Free product rewards are best when the product itself is a strong incentive.
Best fit
Product-led brands that want customers to discover specific items
Brands with strong repeat purchase behavior
Stores where a free item has clear perceived value
Why teams choose it
Drives attention to a specific product
Feels more tangible than a generic discount
Works well for sampling and product discovery
Important setup notes
Select the exact product when configuring the reward
You can set a Minimum Cart Requirement for free product rewards
For free product rewards, you can choose either:
Minimum cart value
Minimum order quantity
You can only use one minimum requirement type at a time
Important: Customers need the selected product in cart for the reward to apply.
2) Basic checkout discount code rewards
This is the simplest and most broadly effective setup: customers redeem points for a straightforward discount code.
Best fit
Stores that want the lowest-friction redemption flow
Brands with broad catalogs
Teams optimizing for easy customer understanding
Why teams choose it
Easy to explain in marketing and onsite messaging
Works across many product types
Fast for customers to understand and use
Common starting point
A typical structure is a simple amount-off reward, then expanding based on performance.
For step-by-step setup, see Fixed Amount Discount Reward.
3) Minimum-order reward unlocks
Minimum-order unlocks let you require a cart threshold before a reward can be applied.
Best fit
Brands trying to lift average order value
Teams that want rewards to drive larger baskets
Stores balancing reward generosity with margin protection
Why teams choose it
Encourages larger carts
Gives you more control over when rewards are used
Can protect margins compared to unrestricted discounts
How it works in setup
In each reward, use Minimum Cart Requirement and choose:
None
Minimum cart value
Minimum order quantity (available for free product rewards)
4) Fixed coupon ladders ($5 / $10 / $20 / $50)
A fixed coupon ladder offers multiple amount-off options at increasing point costs.
Best fit
Teams that want customers to choose between quick wins and bigger goals
Stores with mixed AOV where one discount level is not enough
Programs focused on progression and ongoing engagement
Why teams choose it
Creates visible progression
Supports different customer budgets and basket sizes
Easy to tune by adding or adjusting reward tiers
Default ladder behavior
New loyalty setups include amount-off rewards at:
$5 off for 100 points
$10 off for 200 points
$20 off for 400 points
You can add more tiers (for example, $50 off) by creating additional Amount Discount rewards.
Use reward value rate to sanity-check your setup
In Programs > Points, the Setup Overview card shows your Reward value rate.
A common example:
Customers earn 1 point for every $1 spent
A reward costs 100 points and gives $5 off
Effective reward value rate = 5%
Use this to keep your program attractive to customers while staying aligned with your margins.
Quick decision guide
If you want a fast decision:
Choose Free Product when product experience is your strongest loyalty lever
Choose Basic checkout discount codes when you want simple, broad adoption
Choose Minimum-order unlocks when your main goal is higher average order value
Choose a Fixed coupon ladder when you want clear progression across customer segments
When unsure, start with basic discount codes, measure redemption behavior, then add minimum requirements or a ladder as your program matures.