Development of a loyalty system
112 USD 
Technical assignment
Calculation and scheme of the loyalty system for e-commerce.
1. Purpose of the document
Prepare:
a financially justified model of the loyalty system
a clear logical scheme for the accrual / deduction of bonuses
rules and restrictions
for further implementation by the internal developer GettStyle.
2. Input data (used for calculation)
2.1 Business indicators (provided by the client or taken from analytics)
average check (AOV)
product margin (%)
repeat purchase rate
average number of orders per customer
acceptable % of loyalty expenses from turnover
3. Basic loyalty model (calculation)
3.1 Bonus accrual
Bonuses are accrued:
only after successful payment
after order completion (not at creation)
3.2 Bonus spending restrictions
Maximum bonus deduction:
Prohibit bonus deduction for:
delivery
promotional products (optional)
Deduction formula.
Logic.
4. Loyalty levels (calculation of transitions)
Level recalculation
5. Financial model (mandatory)
5.1 Margin load
Bonus expenses = (Average % of bonuses) × (Turnover)
Prepare examples
Expected metrics:
+X% to repeat purchases
+X% to LTV
increase in purchase frequency
6. Logical scheme (for the developer)
6.1 Events
Order Paid → bonus accrual
Order Refunded → bonus cancellation
Bonus Expired → balance reduction
Level Changed → update % of bonuses
6.2 Data to be stored
6.3 Pseudo-scheme of the process
Order payment
User level check
Calculation of % bonuses
Recording bonuses with expiration date
Updating balance
7. Restrictions and edge cases
Product return:
if bonuses have already been used, deduct from balance
Order cancellation:
bonuses are not accrued
8. Expected result
Document with:
financial model
formulas
logic schemes
Ready for transfer to the developer for implementation without additional clarifications
-
2 days112 USD
368 2 days112 USD
Hello, Andriy,
I calculated your case based on the following test business indicators:
Average order value (AOV) in the store - up to 500 UAH
Average product margin - up to 20%
One customer per year (on average) makes 6–10 orders
Maximum allowable loyalty expenses from turnover - 2–4%
Key conclusions from the actual calculation:
Thresholds for levels adjusted to your pattern (450 UAH × 8 orders/year = 3,600 UAH/year):
… Bronze → Silver: 7 months — motivating, achievable
Silver → Gold: 17 months — for active customers
Gold → Platinum: 3+ years — exclusive VIP
Bonus rates reduced (2–5% instead of 2–8%) — because the margin of 18% is very tight.
At 8% Platinum, you would spend 44% of the margin just on bonuses.
Actual load:
Bronze: 1.2% of turnover ✅
Silver: 1.8% ✅
Gold: 2.4% ✅
Platinum: 3.0% — acceptable, but monitor ⚠️
Weighted across the entire base: ~1.5–2.2% — significantly below your limit of 4% 🎉
There is a ready document, this is a test version, of course, but I can show the document.
If you are interested in collaboration, please let me know.
Best regards,
Yuriy
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