What is Redemption Value?

The redemption value is the value a customer redeems in cash or points to claim a reward. It calculates how much of the customer's balance in points will be deducted when the reward is issued. This is applicable only for rewards with the conv_ratio payment configuration.

What is CONV_RATIO?

The conversion ratio (CONV_RATIO) helps calculate how many points are needed to earn a specific reward, like miles. For example: If the conversion ratio is 0.44 and the customer wants 1000 miles, the system will calculate that 2272 points need to be redeemed

1000 ÷ 0.44 = 2272 points

How Does Redemption Value Work?

Each reward can have a conversion ratio (conv_ratio), which defines how many points are required per unit of redemptionValue.

The formula used for points deduction is:

Scenarios

Scenario 1: Reward Issuance with Redemption Value

A customer redeems a reward with a set redemption value.

Reward Details

Conversion Ratio (conv_ratio): 0.3

Redemption Value (redemptionValue): 100

Quantity of Rewards (quantity): 2

Calculations

Points Deducted

Substituting values

Total Consumed Value

Substituting values

Outcome

Points Deducted: 667

Total Value Consumed: 200

Scenario 2: Reward Issuance Without Payment Config

A customer redeems a reward, but no redemption value or points are set in the payment config.

Reward Details

Conversion Ratio (conv_ratio): 0.3

Quantity of Rewards (quantity): 60

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NOTE

If there is no payment config setup, the system considers the quantity as the redemption value.

Calculations

Intouch Points Deducted = 200

Scenario 3: Reward Issuance with Points and No Redemption Value

Reward Details

Conversion Ratio (conv_ratio): 0.3

Points (points): 200

Quantity of Rewards (qty): 2

Calculations

Intouch Points Deducted

Redemption Value

Total Consumed Value

Outcome

• Intouch Points Deducted: 400
• Redemption Value: 60
• Total Consumed: 120