Home Best Practices & Tips How to Optimize Lucky Wheel Rewards to Boost Conversions and Control Costs

How to Optimize Lucky Wheel Rewards to Boost Conversions and Control Costs

Last updated on Aug 16, 2025

Table of Contents

  1. Introduction

  2. Reward Design Principles

  3. How to Set Winning Probabilities

  4. Reward Types

  5. Setting Reward Expiry Date

  6. Suggested Reward Setup

  7. Cost Management

  8. Optimization Process

  9. Practical Experience

1. Introduction

The lucky wheel is a powerful marketing tool to attract customers, collect leads, and boost sales. Without proper reward setup, you might face:

  • Higher-than-expected promotion costs

  • Customer frustration if they get “no win” too often or rewards are unattractive

  • Discount code abuse

This guide helps you design balanced rewards to increase spin rates, boost conversions, and protect profit margins.

2. Reward Design Principles

  • Balance: Small and medium-value rewards should dominate, while high-value rewards remain rare.

  • Reasonable conditions: Use minimum order amounts, discount caps, or free shipping caps to protect margins.

  • No win: Keep 1–2 slots for suspense, but not too many.

  • Friendly wording: Replace “Unlucky” with “Better luck next time”.

3. How to Set Winning Probabilities

In SpinX, each slot on the wheel has the same probability. Formula:

Probability (%) = (Number of slots for that reward ÷ Total slots on the wheel) × 100

Example:

  • 8-slot wheel → each slot = 12.5%

  • If “Free shipping” has 2 slots → 2 × 12.5% = 25%

  • If “No win” has 1 slot → 1 × 12.5% = 12.5%

💡 Add more slots for a reward to increase its chance.
💡 Reduce slots for a reward to make it rarer.

4. Reward Types

In SpinX, you can configure different reward types. Each works best in specific situations:

🎯 Discount

  • Fixed amount: A clear cash discount (e.g., $5 off).

    • Transparent, easy to understand, ensures cost control.

    • Small product values may not be attractive enough for large orders.

  • Percentage: A% off (e.g., 20%).

    • Strong marketing appeal, suitable for low/medium value orders.

🚚 Free Shipping

  • Great for encouraging checkout completion.

  • Works best when shipping fees are a barrier, especially for small/medium orders.

🎁 Free Gift

  • Select existing products from your store as rewards, added to orders at zero cost.

  • Useful for clearing inventory, giving samples, or creating a fun surprise effect.

5. Setting Reward Expiry Date

You can choose one of the following two expiry types:

Relative Expiry

  • How it works: The reward expires X days after the customer wins it. Example: 3, 5, or 7 days.

  • When to use:

    • To encourage customers to return and purchase quickly.

    • For personalized rewards not tied to other campaigns.

    • When not bound by a fixed event timeline.

  • Pros: Creates urgency for each winner, flexible for each reward type.

  • Note:

    • 2–7 days is recommended to maintain the “heat” of the offer.

    • High-value goods / purchases that require consideration: Can be increased to 5–7 days to give customers enough time to consider.

    • Flash sale or inventory clearance: Can be shortened to 1–2 days to speed up decision making.

Fixed Expiry Date

  • How it works: All rewards expire on the same specific date, regardless of when they are won.

  • When to use:

    • Campaigns tied to events with a fixed end date (Christmas, Black Friday, etc.).

    • Rewards aligned with the store’s main promotion.

    • When you want to stop the offer after a certain phase (e.g., when inventory is low).

    • To comply with legal or internal policy requirements.

  • Pros: Consistent expiry date across winners, easier to manage for large campaigns.

  • Note: Winners close to the expiry date will have less time to use the reward.

6. Suggested Reward Setup (8 slots)

  • Slot 1: FREE Shipping (up to $10)

  • Slot 2: 10% OFF (Min Order $60)

  • Slot 3: Better Luck Next Time

  • Slot 4: $10 OFF (Min Order $80)

  • Slot 5: FREE Shipping (up to $10)

  • Slot 6: $5 OFF (Min Order $50)

  • Slot 7: Better Luck Next Time

  • Slot 8: $25 OFF (Min Order $150)

Stores can repeat rewards to increase probability (e.g., add 1–2 more Free shipping slots).

7. Cost Management

  • Each reward slot has a different cost.

  • Calculate total expected cost based on slot count and reward value.

  • Aim for an average cost ≤ 3–6% of sales from discounted orders.

8. Optimization Process

  • Before launch: Test 3–5 spins to ensure no technical issues (UI, display, code delivery).

  • After launch:

    • Collect at least 30 spins from real customers → analyze results → adjust slots or rewards.

    • With fewer than 20 spins, results may be skewed by luck and not reflect reality.

    • Around 30–50 spins is a good range to spot trends: which slots are hit more often, which rewards are used more.

  • Adjust slot distribution after 1–2 weeks to optimize cost and winning rates.

9. Practical Experience

  • Promote the wheel via email, popups, and social media to increase participation.

  • Limit spins per customer/day to prevent abuse.

  • Be transparent: explain that slot distribution = win probability to build customer trust.

  • A/B test: try two different slot setups to find the most effective one.