---
title: Initial Setup
description: Step-by-step instructions to configure and test LoyaltyBay for the first time.
---

Once you have installed and activated LoyaltyBay, follow this guide to configure settings, understand calculation models, and test the plugin in your store.

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## Step 1: Configure Point Earning Rules

By default, the plugin awards 1 point for every $1 spent. You should configure these ratios to align with your store's economy and customer acquisition costs.

1.  Navigate to **WooCommerce > Settings** and click the **Loyalty Points** tab.
2.  Scroll down to the **Earning Points** section.
3.  Modify the **Points per dollar** field (default is `1`).
    *   *Example*: If you want customers to receive 5 points per $1 spent, set this value to `5`. A $10 purchase will then award 50 points.
4.  Optionally configure additional reward activities:
    *   **Points for Registration**: Points awarded immediately upon user account creation (e.g. 100 points). This is a great incentive to drive guest checkouts into registering.
    *   **Points for Product Review**: Points awarded when a logged-in user submits a product review, once it is **Approved** (e.g. 50 points).
5.  Click **Save Changes** at the bottom of the page.

    ![Conversion Rates Settings](/loyaltybay/assets/screenshots/setup-conversion-rates.png)

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## Step 2: Configure Redemption Rules

Redemption settings control how customers convert their points into monetary discounts at checkout.

1.  Navigate to **WooCommerce > Settings > Loyalty Points** and click the **Redemption Rules** section.
2.  Set the **Point Value**. This is the monetary value of a single loyalty point.
    *   *Default*: `0.01` (1 point = $0.01, so 100 points = $1.00 discount).
3.  Choose your **Redemption Mode**:
    *   **Cart Fee (Fee Mode)**: The discount is applied as a negative checkout fee (`WC_Fee`). This keeps checkout and order detail structures clean but may conflict with some third-party automated tax software that does not calculate taxes on negative fees.
    *   **Virtual Coupon (Coupon Mode)**: Generates a temporary virtual WooCommerce coupon on the fly. This has 100% compatibility with external tax plugins (such as Avalara, TaxJar) and multi-currency plugins because it uses WooCommerce's native coupon framework.
4.  Set the **Minimum Points to Redeem**. The checkout points widget will remain hidden or locked unless the customer has accumulated at least this amount (default: `100`).
5.  Set the **Max Discount %** (default: `50`). This prevents points from discounting more than a specified percentage of the cart total, ensuring you always maintain a healthy margin.

    ![Redemption Mode Settings](/loyaltybay/assets/screenshots/setup-redemption-mode.png)

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## Step 3: Test the Earning Flow

To verify that points are credited accurately:

1.  Open an incognito browser tab or log in as a test customer.
2.  Add a product to the cart and complete the checkout process.
3.  In your WordPress admin panel, go to **WooCommerce > Orders**, select the test order, and change its status to **Completed** (or whatever status you selected as the *Order Status Trigger*).
4.  Verify that the points appear:
    *   **In the Admin Ledger**: Go to **WooCommerce > Loyalty**. You should see a credit entry for the test customer with a reference to the order ID.
    *   **On the Order Details**: Check the order totals block in the WooCommerce admin. It should contain a row highlighting the points earned.
    
    ![Test Order Totals Points Earned](/loyaltybay/assets/screenshots/setup-test-order-totals.png)

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## Step 4: Test the Redemption Flow

To confirm customers can apply points to their orders:

1.  Ensure your test customer has accumulated enough points to meet the **Minimum Points to Redeem** threshold (e.g. 100 points).
2.  Log in as the test customer, add items to the cart, and proceed to the checkout page.
3.  Look for the points slider or manual redemption form:
    *   Use the slider to select a point amount to apply.
    *   Click **Apply Discount**.
4.  Verify that the cart total decreases by the correct value of points applied, and complete the order.
5.  Check the admin ledger to confirm a corresponding **debit** transaction has been recorded.