It's a great question and can impact your business in a big way, so it's good to understand the difference. We offer unlimited iterations of Loyalty Points and Loyalty Currency for use with your loyalty program. The great part is that you can call these Loyalty Accounts anything you'd like—in fact, we encourage you to—by changing your settings as described here: Creating Loyalty Accounts
Loyalty Points allow you to determine what their "worth" is. Customers can earn points for purchases and then you can provide them with ways to redeem the points. You can also award points for other things like joining your mailing list (subscriber group) and more. Redemption examples include, but of course aren't limited to:
- Earn 150 points and automatically receive 15% off your next purchase.
- Some clients have experiences that they offer such as earn 1,000 points get a free pedicure. Typically clients using this method allow customers to save their points and redeem them for the experience that they choose by applying a coupon that will provide the discount on the item and decrement the points.
These are just like cash - they can be spent like cash on any purchase. Customer can earn points for purchases and they get to choose when they spend their dollars.You can also award dollars for other things like joining your mailing list (subscriber group) and more.
Typically businesses look at loyalty dollars as something that is owed to the customer and they carry that as a liability from an accounting perspective.
SO... what should you use? It's really up to you and your company to decide what fits best with the program you are creating and your business requirements. If you're not sure you can always reach out to us to ask for input.