Loyalty Points in Odoo 18

Customer loyalty is no longer just a “nice-to-have”; it is a driving force behind sustainable business growth. In today’s competitive market, acquiring a new customer can cost five times more than retaining an existing one. This is why businesses across industries are investing in loyalty programs, and with Odoo 18, managing them has become easier and more powerful than ever.

Odoo 18 introduces a flexible loyalty management system that allows businesses to reward repeat purchases, encourage larger orders, and build stronger customer relationships. By setting up loyalty points directly inside Odoo’s ecosystem (POS, eCommerce, CRM, and Sales), you can create a seamless experience for your customers, whether they shop online, in-store, or both.

Why Businesses Use Loyalty Programs

Loyalty programs are more than just points and discounts. They are strategic tools designed to:

• Encourage repeat purchases: When customers know they earn points on every transaction, they are more likely to return.
• Boost average order value: Shoppers tend to spend more to unlock rewards faster.
• Strengthen emotional connection: Customers feel valued when their loyalty is recognized.
• Differentiate from competitors: A smart loyalty scheme gives your business an edge in crowded markets.

For example, if two stores sell the same product at a similar price, the one offering loyalty rewards will naturally attract and retain more customers.

Benefits for Customer Retention and Sales Growth

Implementing loyalty programs in Odoo 18 brings measurable benefits for both customers and businesses:

• Higher Retention Rates: Customers enrolled in loyalty programs are 60% more likely to keep buying from the same brand.
• Increased Lifetime Value (CLV): Loyal customers spend more over time, directly improving profitability.
• Reduced Marketing Costs: Retaining an existing customer through loyalty points is far cheaper than acquiring a new one.
• Stronger Brand Advocacy: Happy, loyal customers often turn into brand promoters, bringing in referrals.

With Odoo 18’s integrated approach, businesses can design personalized loyalty strategies that not only drive sales but also create lasting customer relationships.

Understanding Odoo 18 Loyalty Program Features

Before setting up loyalty points in Odoo 18, it is important to understand what the system offers and how it works. Odoo 18 provides a flexible and easy-to-manage loyalty program framework that lets businesses define points, rewards, and conditions tailored to their customer base. Unlike traditional one-size-fits-all loyalty systems, Odoo gives you full control to design a program that fits your brand’s goals.

Overview of Loyalty Points, Rewards, and Conditions

In Odoo 18, loyalty programs work through a simple but powerful mechanism:

• Loyalty Points: Customers earn points for specific actions such as making purchases, buying selected products, or spending a certain amount. These points are automatically tracked in their profile.
• Rewards: Points can be redeemed for benefits such as free products, gift vouchers, or discounts on future purchases.
• Conditions: You can define rules for how points are earned and spent. For example, 1 point for every $10 spent, or redemption allowed only after a minimum of 100 points.

This flexibility ensures that your loyalty program can be as straightforward or as advanced as your business requires. Whether you want to run a simple “spend and earn” model or introduce tier-based benefits, Odoo 18 makes it possible.

Difference Between Discounts, Coupons, and Points

Many businesses confuse loyalty points with discounts or coupons, but each serves a different purpose in Odoo 18:

• Discounts: These are price reductions applied instantly at checkout. While effective for driving quick sales, they do not build long-term loyalty.
• Coupons: These are codes or vouchers given to customers, usually for promotions, special offers, or campaigns. Coupons encourage one-time purchases but may not keep customers coming back.
• Loyalty Points: Unlike discounts and coupons, points are cumulative. They motivate customers to return because the value grows with every purchase. This creates a stronger, ongoing relationship rather than a short-term incentive.

Discounts attract buyers, coupons spark interest, but loyalty points keep customers coming back again and again.

Steps to Set Up Loyalty Points in Odoo 18

Setting up a loyalty program in Odoo 18 is a straightforward process, but it becomes powerful once you configure the right rules. The platform allows you to manage loyalty across different sales channels such as Point of Sale (POS), CRM, and Website/eCommerce, ensuring a seamless experience for your customers. Below is a step-by-step guide.

Step 1: Activate the Required Modules

Before creating loyalty programs, make sure you have the right modules installed.

1. Go to the Apps module.
2. Install or verify that the following apps are active:

• Sales (for backend sales orders and CRM integration)
• Point of Sale (POS) (for in-store purchases)
• Website/eCommerce (for online loyalty usage)

3. Once installed, loyalty configuration options will become available under the Sales module.

Even if you only plan to use loyalty points in one channel, keeping modules integrated ensures flexibility for future growth.

Step 2: Access Loyalty Program Settings

1. From the main menu, go to Sales > Products > Loyalty Programs.
2. Click Create to open the loyalty program configuration form.

This section is your central hub for creating and managing all loyalty schemes.

Step 3: Configure Basic Program Details

Fill in the general details for your loyalty program:

• Program Name: Choose a clear, customer-friendly name.
  e.g., Shop & Earn Rewards.
• Available On: Select where the program applies (POS, Website, Sales).
• Points per Currency: Define how many points are earned per unit of currency spent. e.g., 1 point per $10 spent.
• Validity: Add a start and end date if the program is seasonal or campaign-based.
• Target Audience: Restrict to specific customer groups (e.g., VIP customers) if needed.

Step 4: Define Earning Rules

Loyalty programs become powerful when you customize how points are earned.

• General Spending Rule: Decide the base earning rate (e.g., 1 point per $10).
• Product-Specific Rules: Offer bonus points for high-margin or promotional items.
• Order Thresholds: Add extra points for orders above a certain value (e.g., 50 bonus points for purchases over $200).

A coffee shop might award double points on Mondays to boost sales on slow days.

Step 5: Define Redemption Rules

Redemption rules determine how customers can use their points.

• Points to Currency Conversion: Example: 100 points = $5 discount.
• Minimum Threshold: Require a minimum number of points before redemption is allowed (e.g., 200 points minimum).
• Expiry Dates: Encourage timely usage by setting expiration periods (e.g., points valid for 6 months).

Expiry dates drive repeat visits because customers want to redeem points before they expire.

Step 6: Save and Launch the Program

1. After entering all rules, click Save.
2. Test the program by making a sample sale in the POS or Website.
3. Confirm that points are correctly applied and redemption works smoothly.

Step 7: Track and Manage Loyalty Points

Once the program is live, you can monitor and adjust as needed:

• View customer profiles to see accumulated points.
• Manually adjust points in case of refunds or customer service issues.
• Generate reports from Sales > Reporting to track program performance.

By completing these steps, your loyalty program will be live and ready to engage customers. The next phase is learning how to customize and optimize loyalty rules to maximize retention and profitability.

Customizing Loyalty Rules and Rewards in Odoo 18

Once your basic loyalty program is live, the real value comes from customizing the rules and rewards to fit your business goals. Odoo 18 allows you to go beyond a simple “spend-and-earn” model by giving you tools to adjust points, set expiration dates, and even create tier-based programs that encourage customers to spend more and stay loyal longer.

Setting Points per Purchase Amount

Not all purchases should earn the same rewards. Odoo 18 gives you the flexibility to set different points-per-purchase configurations:

• Flat Rate: Award a fixed number of points for every currency unit spent (e.g., 1 point per $10).
• Product-Specific Rates: Reward more points on high-margin or promotional products.
• Order Value Bonuses: Offer extra points for larger orders (e.g., 20 bonus points for spending above $200).

An electronics retailer could offer double points on accessories to increase add-on sales, while keeping the standard rate for core products.

This customisation ensures your loyalty program supports both customer retention and profitability.

Configuring Expiry Dates for Points

Points lose their power if customers can hoard them indefinitely. That’s why expiry rules are critical. In Odoo 18, you can:

• Set points to expire after a fixed time (e.g., 6 months from issue).
• Create seasonal campaigns where points expire shortly after the promotion ends.
• Encourage repeat purchases by reminding customers about expiring points through automated emails.

A study by Bond Loyalty found that 41% of customers are more engaged when points have a clear expiration timeline, as it pushes them to make purchases before losing value.

Tier-Based Loyalty Programs (Silver, Gold, Platinum)

If you want to add exclusivity and motivation, tier-based loyalty programs are a great option. Odoo 18 supports setting up tiers based on customer activity.

• Silver: Entry-level, all customers start here.
• Gold: Unlock after reaching a spending threshold (e.g., $1,000 per year).
• Platinum: Reserved for high-value customers with premium benefits.

Each tier can offer:

• Higher earning rates (e.g., Silver = 1 point/$10, Gold = 2 points/$10).
• Exclusive discounts or early access to sales.
• Personalised rewards for top-tier members.

A fashion retailer could create a program where Platinum members receive free shipping and VIP sale previews, reinforcing long-term loyalty.

Customising your loyalty rules in Odoo 18 allows you to reward smartly, increase customer engagement, and maximise profitability. By adjusting point rates, adding expiry rules, and introducing tiered rewards, your program becomes more than just a discount system; it becomes a long-term strategy for customer retention.

Managing Loyalty Points in Odoo 18

Setting up a loyalty program is only the first step. The real value comes from managing customer points effectively across all sales channels. Odoo 18 simplifies this process by centralizing loyalty tracking in POS, Sales, and Website modules. You also have complete control to manually adjust points when needed and handle refunds without breaking the customer experience.

Tracking Customer Points in POS, Sales, and Website

One of Odoo 18’s biggest advantages is the ability to track loyalty points seamlessly across different channels:

• Point of Sale (POS): Every time a customer makes an in-store purchase, points are automatically calculated and linked to their account. At checkout, customers can also redeem their balance in real time.
• Sales Orders (CRM/Sales): For backend sales teams, points earned or redeemed are visible directly on customer records. This ensures your sales reps have a complete view of each client’s engagement.
• Website/eCommerce: Online shoppers see their available points during checkout, which motivates them to complete the purchase. Customers can also log in to their accounts to view their point balance.

A customer buys a product in-store and later shops on your website. With Odoo 18’s integrated system, their loyalty points carry over automatically, creating a smooth omnichannel experience.

Manually Adjusting Loyalty Points

Sometimes, loyalty balances need adjustments due to errors, special rewards, or customer service gestures. Odoo 18 allows you to make these changes easily:

• From the Customer Record: Navigate to the customer profile in Sales or POS and add or subtract points manually.
• Adjustment Reasons: Use notes or internal tags to document why points were modified (e.g., “bonus points for VIP customer” or “manual correction after system error”).
• Bulk Updates: If running a promotional campaign, you can adjust points for a group of customers at once.

Offering bonus points as compensation for delays or issues can turn a negative experience into a loyalty-building opportunity.

Handling Refunds and Point Deductions

Refunds and returns often complicate loyalty systems, but Odoo 18 handles them automatically when configured properly:

• Automatic Deductions: If a customer returns a product, the system deducts the previously earned points from their account.
• Partial Returns: For partial refunds, only the points related to the returned items are removed.
• Manual Overrides: In case of disputes or goodwill gestures, you can override the deduction and let the customer keep their points.

A customer purchases a laptop and earns 200 points. If they later return it, Odoo automatically adjusts their loyalty balance to reflect the change, keeping the system fair and transparent.

Managing loyalty points in Odoo 18 is about more than tracking numbers. It’s about creating trust and transparency with your customers. By monitoring points across all channels, adjusting balances when necessary, and handling refunds seamlessly, you ensure your loyalty program works smoothly and keeps customers engaged.

Integrating Loyalty Points with Sales & POS in Odoo 18

A loyalty program only works if it is seamlessly integrated into the customer journey. Odoo 18 connects loyalty points with both Sales and Point of Sale (POS), ensuring customers have a smooth experience whether they buy in-store or online. This integration not only makes it easy for staff to apply rewards but also keeps customers motivated to return and redeem their points.

How Points Are Applied During Checkout

Odoo 18 ensures loyalty points are automatically calculated and applied at checkout across different channels:

• In POS (In-Store Purchases)
• When a customer checks out, their earned points are instantly displayed.
• Cashiers can apply available points toward discounts in real time.
• Customers receive a printed receipt or digital invoice showing updated point balances.
• In Sales (Backend Orders)
• For orders placed through the sales team, loyalty points are automatically logged in the customer record.
• If the customer wants to redeem points, the system applies them as a discount before finalising the order.
• In Website/eCommerce
• During online checkout, customers see their current point balance in the cart.
• They can choose to redeem points immediately or save them for future purchases.
• The updated balance is reflected instantly after the order is confirmed.

A customer earns 50 points after buying in-store. The next day, they shop online and use 30 points for a discount. Odoo 18 ensures both transactions are synchronised, keeping the balance accurate across all touchpoints.

Syncing Loyalty Across Physical Stores and eCommerce

One of the biggest strengths of Odoo 18 is its ability to sync loyalty points across multiple sales channels. This eliminates confusion and creates a unified customer experience:

• Omnichannel Balance: Customers earn and redeem points regardless of where they shop—online, in-store, or via sales reps.
• Single Customer Record: All loyalty activity is tied to one profile, giving businesses a 360° view of customer engagement.
• Consistency: Whether points are earned in one store location or on the website, the balance is updated everywhere instantly.
• Scalability: Multi-branch businesses can extend loyalty programs across all outlets, ensuring customers feel rewarded no matter where they shop.

By integrating loyalty points with Sales, POS, and eCommerce, Odoo 18 delivers a frictionless loyalty experience. Customers can see, earn, and redeem their points wherever they shop, while businesses benefit from higher retention, increased order value, and consistent customer data across all platforms.

Reporting and Analytics on Loyalty Programs in Odoo 18

Launching a loyalty program is just the beginning. To maximise its impact, businesses must track performance, measure results, and refine strategies based on real data. Odoo 18 includes built-in reporting and analytics features that help you monitor customer engagement, evaluate return on investment (ROI), and identify your most valuable customers. This ensures your loyalty program is not only running but delivering measurable results.

Monitoring Customer Engagement

Customer engagement is the heartbeat of any loyalty program. In Odoo 18, you can monitor:

• Enrollment Rates: How many customers are actively joining your loyalty program.
• Redemption Rates: The percentage of earned points that customers are actually redeeming.
• Repeat Purchase Frequency: How often loyalty members return compared to non-members.
• Channel Performance: Insights into whether customers prefer earning and spending points in-store, online, or through sales reps.

If 70% of your loyalty customers redeem points within the first 3 months, it’s a strong indicator that the program is driving repeat sales.

Evaluating ROI of Loyalty Schemes

Every loyalty program should justify its investment. Odoo 18 provides data that helps calculate the return on investment (ROI):

• Increased Customer Lifetime Value (CLV): Compare spending patterns of loyalty members versus non-members.
• Sales Growth: Measure revenue uplift from loyalty-driven repeat purchases.
• Cost per Reward: Evaluate how much discounts or free products are costing versus the sales they generate.
• Campaign Effectiveness: Track seasonal or promotional loyalty campaigns to see which ones bring the best returns.

Identifying Top-Performing Customers

Not all customers are equal in terms of value. Odoo 18 makes it easy to identify your top-performing customers:

• High Earners: Customers who consistently accumulate large amounts of points (your big spenders).
• Frequent Redeemers: Shoppers who regularly engage with your program by using their points.
• Brand Advocates: Loyal customers who not only spend but also influence referrals and repeat business.

Once identified, you can:

• Create VIP segments with exclusive perks.
• Offer personalized promotions to high-value customers.
• Strengthen relationships by rewarding loyalty beyond standard point systems.

A retail chain may discover that 15% of customers account for 60% of loyalty redemptions. By giving this segment early access to sales or higher point multipliers, the business can further increase retention.

With Odoo 18’s reporting and analytics, loyalty programs move from being guesswork to data-driven strategy. By tracking engagement, calculating ROI, and recognising top customers, businesses can refine their loyalty efforts for maximum impact. The result is stronger retention, smarter marketing, and sustainable growth.

Best Practices for Effective Loyalty Program Management in Odoo 18

Setting up a loyalty program in Odoo 18 is only half the job; the real challenge lies in managing it effectively. A well-structured program not only drives repeat sales but also strengthens customer relationships. To maximise results, businesses must focus on encouraging repeat purchases, avoiding common pitfalls, and personalising rewards.

How to Encourage Repeat Purchases

A loyalty program’s success depends on how often customers come back. Odoo 18 allows businesses to implement strategies that keep customers engaged:

• Make rewards easily attainable: If it takes too long to earn points, customers may lose interest. Set realistic thresholds that motivate frequent purchases.
• Offer bonus points on special occasions: Double points on weekends, holidays, or during product launches can create urgency.
• Gamify the experience: Introduce badges, tiers, or milestones (e.g., “Spend ₹5,000 and unlock Silver status”) to motivate higher spending.
• Cross-channel availability: Ensure points can be earned and redeemed both online and offline for seamless customer experiences.

Avoiding Common Mistakes in Loyalty Programs

Many loyalty programs fail because they’re not customer-friendly. Common mistakes to avoid include:

• Overcomplicated rules: If customers can’t understand how points are earned or redeemed, they won’t participate. Keep it simple.
• Lack of communication: Customers need regular reminders, send automated emails or push notifications from Odoo to keep them updated.
• One-size-fits-all rewards: Offering only discounts may not appeal to everyone. Mix in free products, VIP access, or early sale entries.
• Ignoring inactive members: If a customer hasn’t redeemed points in months, trigger re-engagement campaigns (e.g., “Your 200 points are about to expire!”).

Personalizing Offers for Better Retention

Personalization is no longer optional; it’s expected. With Odoo 18, businesses can tailor loyalty rewards to individual preferences:

• Purchase history-based offers: If a customer frequently buys skincare, send them exclusive loyalty rewards on new arrivals in that category.
• Tiered benefits: Reward top spenders with VIP perks like free shipping, early product access, or premium discounts.
• Location-based personalization: For global businesses, offer region-specific deals or localized promotions.
• Automated segmentation: Use Odoo’s CRM data to create customer groups (e.g., frequent buyers, seasonal shoppers) and push personalized campaigns.

An effective loyalty program in Odoo 18 is simple, rewarding, and personalized. By encouraging repeat purchases, avoiding common mistakes, and tailoring offers, businesses can build long-term customer relationships that translate into consistent revenue growth.

Advanced Configurations in Odoo 18 Loyalty Programs

Once the basics of loyalty management are in place, businesses can unlock advanced configurations in Odoo 18 to support global operations, multi-brand setups, and automation. These features allow organizations to scale their loyalty programs while keeping them flexible and region-specific.

Multi-Company Loyalty Setup

For businesses managing multiple subsidiaries or brands under one Odoo instance, the multi-company loyalty setup is a game-changer.

• Shared or separate loyalty schemes: You can decide whether all companies share a common loyalty program or each subsidiary runs its own.
• Customer portability: A customer can earn points in one company and redeem them in another, enhancing brand loyalty across your group.
• Centralized reporting: Odoo 18 lets managers track points across companies while still respecting each entity’s accounting and policies.

A retail group with fashion and electronics divisions can allow customers to earn points when shopping for clothes and redeem them later in the electronics store.

Multi-Currency & Region-Specific Loyalty Programs

Operating across regions often requires adapting loyalty rules to local currencies and preferences. Odoo 18 supports this with flexibility:

• Currency conversion: Loyalty points can be tied to the local currency of each country, ensuring fair value across regions.
• Localized earning rules: Set different thresholds for point accumulation depending on purchasing power in each market.
• Cultural relevance: Promotions can be customised for local holidays for stronger customer engagement.
• Tax compliance: Regional loyalty setups also integrate seamlessly with Odoo’s tax engine to avoid compliance issues.

Global brands that localize loyalty strategies see 20–30% higher engagement compared to standardized programs.

Automation Using Odoo Studio & Custom Modules

Scaling loyalty programs often requires automation, and Odoo 18 provides multiple ways to achieve it:

• Odoo Studio: Without coding, businesses can create automated workflows, such as:
• Auto-assigning points after invoice validation.
• Sending reminder emails when points are about to expire.
• Triggering exclusive offers when a customer enters a new tier.
• Custom modules: For advanced needs, developers can extend functionality.
• Integrating with third-party apps (e.g., WhatsApp or SMS notifications).
• Creating tier-based gamification dashboards.
• Building APIs to sync loyalty points with external CRMs or marketplaces.
• Scheduled actions: Automate loyalty recalculations daily, weekly, or monthly, reducing manual intervention.

An eCommerce store set up an automated workflow where customers receive a personalized coupon by email once they reach 1,000 loyalty points, boosting redemptions by 40%.

With advanced configurations in Odoo 18, businesses can scale loyalty programs globally while keeping them localised, automated, and customer-centric. Multi-company setups, multi-currency adaptability, and workflow automation ensure that loyalty programs remain not just attractive, but also sustainable as businesses grow.

Conclusion

Loyalty programs in Odoo 18 are more than just reward systems, they are powerful tools to increase customer retention, boost sales, and strengthen brand loyalty. From simple point-based rewards to advanced multi-company and multi-currency setups, Odoo provides the flexibility businesses need to scale. With built-in reporting and automation, companies can monitor engagement, personalise offers, and continuously optimize for better ROI.

If you’re looking to maximize customer retention, now is the right time to leverage Odoo 18’s loyalty features. Choosing the right ERP solution can feel overwhelming, but it doesn’t have to be. Whether you’re just starting, upgrading from an older version, or looking to enhance your system with advanced configurations, we’re here to help.

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