POS Dynamic Discount Codes

Overview

POS Dynamic Discount Codes allow customers to create custom-value discount codes for in-store redemptions at your Point of Sale. This simplified configuration focuses on the core dynamic discount functionality without purchase type or combination options.

Configuration Only

POS dynamic discount code configuration is available now. The ability for customers to actually redeem and use POS dynamic discounts will be implemented in a future update. This page documents the configuration options currently available.

Configuration

Enable/Disable Feature

Toggle the POS dynamic discount code feature on or off.

When Enabled:

• Configuration is saved and ready for when POS redemption is implemented
• Eligible customers will be able to generate codes (in future update)
• All configured rules will apply

When Disabled:

• Feature hidden from POS interface
• Configuration is saved but inactive

Points-to-Currency Ratio

Set how many points equal one dollar of discount value for POS redemptions.

Configuration:

• Enter ratio (e.g., 100 means 100 points = $1)
• Can be updated anytime
• Can be the same or different from online ratio

Calculation Formula:

Discount Value = Points Redeemed ÷ Ratio

Examples:

Ratio: 100 points = $1

Customer redeems 500 points → $5 discount
Customer redeems 1,500 points → $15 discount
Customer redeems 5,000 points → $50 discount

Strategic Consideration:

You can set a different ratio for POS than online:

Strategy	Configuration	Use Case
Same Ratio	Online: 100:1, POS: 100:1	Consistent value across channels
Better POS Ratio	Online: 100:1, POS: 75:1	Incentivize in-store visits
Better Online Ratio	Online: 100:1, POS: 125:1	Drive online redemptions

Minimum Points Required

Set the minimum number of points customers must redeem for POS discounts.

Configuration:

• Enter minimum points (e.g., 500)
• Prevents very small discount values
• Ensures meaningful in-store redemptions

Example:

Minimum: 500 points
Ratio: 100:1
Minimum discount: $5

Customer attempts 300 points → Error shown
Customer enters 500 points → $5 discount ✓

Recommendations:

• Set minimum around $5 discount value
• Consider average in-store purchase value
• May be different from online minimum

Maximum Points Allowed

Set the maximum number of points customers can redeem per POS claim.

Configuration:

• Enter maximum points (e.g., 5,000)
• Caps discount value per claim
• Protects margins

Example:

Maximum: 5,000 points
Ratio: 100:1
Maximum discount: $50

Customer enters 5,000 points → $50 discount ✓
Customer attempts 6,000 points → Error shown

Recommendations:

• Set maximum around average in-store purchase value
• May be different from online maximum
• Consider typical POS transaction sizes

Customer Eligibility

Control who can use POS dynamic discount codes.

All Customers

Feature is available to any customer in your loyalty program.

Use Case: Universal in-store flexibility.

Specific Customers

Select individual customers who can access POS dynamic discounts.

Configuration:

• Search for customers by name or email
• Add multiple customers individually
• Only selected customers can generate POS codes

Use Case: VIP in-store benefits, personalized offers.

Specific Customer Segment

Target customer segments created in Shopify.

Configuration:

• Select from Shopify customer segments
• Same segments as online configuration

Common Segment Examples:

• Local customers (based on location)
• Frequent in-store shoppers
• Gold tier customers
• High lifetime value customers

Use Case: Drive foot traffic from specific customer groups.

Shopify Customer Segments

Customer segments are created in Shopify admin > Customers > Segments. Learn more in Shopify's customer segmentation documentation.

What's Not Included in POS

The POS configuration is simplified and does not include:

Purchase Type Options

• No selection for one-time vs. subscriptions
• All POS transactions are treated as one-time purchases
• Subscription handling is an online-only feature

Reason: POS transactions are typically one-time purchases.

Discount Combinations

• No options to enable/disable combinations with other discounts
• POS dynamic discounts follow default Shopify POS discount rules
• Cannot configure stacking behavior

Reason: POS has its own native discount management that handles combinations.

Setup Process

Step 1: Navigate to POS Configuration

1. Open Keystone Loyalty Rewards app
2. Navigate to Loyalty Program > Rewards > Dynamic Discount Codes
3. Select POS tab

Step 2: Enable Feature

Toggle Enable POS Dynamic Discount Codes to ON.

Step 3: Configure Points-to-Currency Ratio

Field	Description
Points per Dollar	How many points equal $1 discount (e.g., 100)

Step 4: Set Point Limits

Field	Description
Minimum Points	Minimum points required (e.g., 500)
Maximum Points	Maximum points allowed (e.g., 5,000)

Step 5: Set Customer Eligibility

Choose one:

• All customers
• Specific customers (search and select)
• Specific customer segment (choose segment)

Step 6: Save Configuration

1. Review all settings
2. Verify ratio and limits appropriate for in-store redemptions
3. Click Save Configuration
4. Configuration is saved (redemption functionality coming in future update)

Future Implementation

When POS redemption is fully implemented, customers will be able to:

1. Identify themselves at POS (via phone, email, or loyalty card)
2. Staff accesses customer's loyalty account
3. Customer selects number of points to redeem
4. System generates discount code
5. Staff applies discount to transaction
6. Transaction completes with discount applied

Use Cases

1. In-Store Flexible Redemption

Configuration:

• Ratio: 100:1
• Minimum: 500 points ($5)
• Maximum: 5,000 points ($50)
• Eligibility: All customers

Goal: Provide flexibility for in-store shoppers.

2. Drive Foot Traffic with Better Rates

Configuration:

• Ratio: 75:1 (better than online 100:1)
• Minimum: 750 points ($10)
• Maximum: 3,750 points ($50)
• Eligibility: All customers

Goal: Incentivize in-store visits with better conversion rates.

3. VIP In-Store Benefits

Configuration:

• Ratio: 100:1
• Minimum: 1,000 points ($10)
• Maximum: 10,000 points ($100)
• Eligibility: Gold tier only

Goal: Provide exclusive POS dynamic discount access to top customers with higher limits.

Best Practices

1. Consider In-Store Economics

POS transactions may have different economics than online:

Factors to Consider:

• No shipping costs
• Potential for immediate upsells
• Staff interaction adds value
• Opportunity for basket-building

Strategy: You may be able to offer better POS ratios since there's no shipping cost to offset.

2. Set POS-Appropriate Limits

Align limits with typical in-store purchase values:

Recommendations:

• Review average POS transaction size
• Set maximum relative to typical basket size
• Consider minimum that covers small purchases

3. Train Staff

When POS redemption is implemented, ensure staff understand:

• How to help customers access loyalty accounts
• How to generate dynamic discount codes
• Point-to-dollar conversion
• Minimum and maximum limits

4. Consider Separate Ratios

Use different ratios for online vs. POS strategically:

Example Strategy:

• Online: 100:1 (standard value)
• POS: 75:1 (25% better value)
• Result: Drives in-store traffic while maintaining online profitability

Related Features

• Dynamic Discount Codes Overview - Feature overview
• Online Dynamic Discount Codes - Online configuration
• Customer Tiers - Segment-based eligibility
• Transactions - View claims and usage

Summary

POS Dynamic Discount Codes provide a simplified configuration for in-store flexible redemptions. With control over ratios, limits, and eligibility, you can create an in-store redemption experience that drives foot traffic and rewards in-person shopping.

The simplified configuration (no purchase type or combination options) reflects the nature of POS transactions while still providing the core flexibility that makes dynamic discounts valuable. Consider using better ratios for POS to incentivize in-store visits and leverage the immediate upsell opportunities that physical retail provides.