As a merchant you establish the rate of loyalty reward points that get awarded for every dollar spent by your customer (for example, 1 point for every dollar). You also establish the conversion rate of the reward tokens when they are redeemed to actual dollar discount (for example, $1 discount for every 10 reward points).

So in this example a buyer who purchased a $100 item, would receive 100 reward points. The buyer accumulates these points in the Loyal Shopper wallet app. When the buyers shop your store again and want to use their rewards on the new purchases, they open up the wallet and redeem the points – these points convert into a discount code that can be applied at Shopify checkout. In our example, 100 rewards are converted into $10 discount (those rates are flexible and configurable by the merchant).