To ensure consistent value across different currencies, we recommend basing your point values on Purchasing Power Parities (PPP) rather than exchange rates. PPP accounts for differences in price levels between countries, providing a fairer comparison of point values.
Here’s how you can set up multi-currency point values:
Choose a Base Currency: Select the currency that will set the value for your points.
Set a Base Points Value: Define how many points equal one unit of your base currency.
Find PPP Values: Research the PPP values for other currencies compared to your base currency.
Convert to Points: Use the PPP values to convert each currency’s value into points.
Round Point Values: Round the values to common denominations for easier reward issuance.
Final Conversion: Value of 1 Currency Unit to Points which can be configured into the points setting page.
Example 1: Currency with Higher Value than Base Currency
Base Currency: Canadian Dollar (CAD)
Base Points Value: 1 CAD = 100 points
British Pound (GBP) PPP Value: 0.6 GBP = 1 CAD
Therefore, 100 points = £0.60
Rounded: 100 points = £0.50
Final Conversion: 1 GBP = 200 points
Example 2: Currency with Lower Value than Base Currency
Base Currency: Canadian Dollar (CAD)
Base Points Value: 1 CAD = 100 points
Indian Rupee (INR) PPP Value: 18 INR = 1 CAD
Therefore, 100 points = 18 INR
Rounded: 100 points = 20 INR
Final Conversion: 1 INR = 5 points
Planning Your Points Denominations
Once you’ve set up your point values, you can create point denominations for your reward types and understand the currency value they provide.
For example:
1000 points = 10 CAD, 5 GBP, 200 INR
500 points = 5 CAD, 2.50 GBP, 100 INR
200 points = 2 CAD, 1 GBP, 40 INR
Recommended Practices
Use Common Denominations: Round point values to make reward issuance simpler and more user-friendly.
Regularly Review PPP Values: Update your point values periodically to reflect changes in purchasing power.
Communicate Clearly: Ensure your users understand how points are earned, their value and how to redeem them.