Loyalty Program

The Loyalty Program allows you to reward customers with loyalty points based on their purchases. Customers can later redeem these points to receive discounts on future sales invoices, helping improve customer retention and repeat business.

This guide explains how to enable the Loyalty Program, create reward rules, assign programs to customers, and manage earning and redeeming loyalty points.

Enable Loyalty Program

Before creating loyalty programs, you must enable the feature from the General Settings.

1. Go to Setup → Settings → General.
2. Enable the Enable Loyalty Program option.
3. Restart Frappe Books.

Create a Loyalty Program

Once enabled, you can configure one or more loyalty programs based on your business requirements.

Navigate to:

Sales → Loyalty Program

Click the + button to create a new Loyalty Program.

Program Details

• Program Name – Enter a unique name.
• Validity Period – Select the start and end dates.
• Enabled – Activate the program by enabling the checkbox.

Collection Rules

Collection Rules determine how customers earn loyalty points.

Additional Settings

• Select an Expense Account to record loyalty benefit expenses.
• Specify the Expiry Duration to automatically expire loyalty points after a certain number of days.

Assign a Loyalty Program to a Customer

A customer must be assigned to a Loyalty Program before earning or redeeming points.

1. Open the Customer record.
2. Select the desired Loyalty Program.
3. Save the customer.

Once assigned, the customer’s accumulated loyalty points are displayed within the Customer record.

How Customers Earn Loyalty Points

Loyalty points are automatically calculated whenever a Sales Invoice is submitted for a customer enrolled in a Loyalty Program.

1. Assign a Loyalty Program to the customer.
2. Create and submit a Sales Invoice.
3. The system evaluates the purchase against the configured collection rules.
4. If the invoice qualifies, loyalty points are automatically awarded.

Loyalty Point Entry

Whenever points are awarded, Frappe Books automatically creates a Loyalty Point Entry.

This entry serves as an audit log, recording:

• The customer who earned the points.
• The related Sales Invoice.
• The number of loyalty points awarded.

Redeem Loyalty Points

Customers can redeem accumulated loyalty points while creating a Sales Invoice.

1. Create a Sales Invoice for a customer with available loyalty points.
2. Open the Loyalty Point Redemption section.
3. Enable Redeem Loyalty Points.
4. Enter the number of points to redeem.
5. The invoice total is automatically reduced based on the redeemed points.

Only the remaining balance needs to be paid after the loyalty discount has been applied.

How Loyalty Program Works

Best Practices

• Create reward tiers that encourage higher customer spending.
• Configure realistic point expiry periods to motivate repeat purchases.
• Assign Loyalty Programs only to eligible customers.
• Review Loyalty Point Entries regularly to monitor reward distribution.
• Use an Expense Account dedicated to loyalty rewards for accurate financial reporting.