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Generative AI > Google Gemini API > Loyalty Rewards Agent

Loyalty Rewards Agent

Author: Venkata Sudhakar

Loyalty programmes drive repeat purchases at ShopMax India, but complexity around point balances, redemption rules, and tier benefits often confuses customers. An ADK loyalty rewards agent gives customers a single conversational interface to check their points, redeem rewards, understand tier benefits, and get personalised tips on reaching the next tier faster.

The agent uses tools to fetch the loyalty account, calculate redemption options, apply points at checkout, and generate a personalised tier progression plan. It handles the full loyalty lifecycle from balance enquiry to redemption in one session.

from google.adk.agents import LlmAgent
from google.adk.tools import FunctionTool
from google.adk.sessions import InMemorySessionService
from google.adk.runners import Runner
from google.genai.types import Content, Part

# ShopMax India loyalty tiers
TIERS = {
    "Standard": {"min_spend_rs": 0,      "max_spend_rs": 25000,  "earn_rate": 1,  "redeem_rate": 0.25},
    "Silver":   {"min_spend_rs": 25001,  "max_spend_rs": 75000,  "earn_rate": 2,  "redeem_rate": 0.30},
    "Gold":     {"min_spend_rs": 75001,  "max_spend_rs": 200000, "earn_rate": 3,  "redeem_rate": 0.40},
    "Platinum": {"min_spend_rs": 200001, "max_spend_rs": 999999, "earn_rate": 5,  "redeem_rate": 0.50},
}

def get_loyalty_account(user_id: str) -> dict:
    """Get ShopMax India loyalty account details for a customer."""
    accounts = {
        "u_priya": {"name": "Priya Nair",  "points": 4250, "tier": "Silver",
                    "lifetime_spend_rs": 68000, "points_expiry": "2026-12-31"},
        "u_rohan": {"name": "Rohan Desai", "points": 820,  "tier": "Standard",
                    "lifetime_spend_rs": 18500, "points_expiry": "2026-06-30"},
    }
    return accounts.get(user_id, {"error": "Account not found"})

def calculate_redemption_value(points: int, tier: str) -> dict:
    """Calculate the cash value of ShopMax India loyalty points for redemption."""
    redeem_rate = TIERS.get(tier, TIERS["Standard"])["redeem_rate"]
    value_rs = round(points * redeem_rate)
    return {"points": points, "tier": tier, "redeem_rate_per_point": redeem_rate,
            "cash_value_rs": value_rs,
            "min_redemption_points": 500,
            "eligible": points >= 500}

def apply_points_at_checkout(user_id: str, order_total_rs: int,
                              points_to_redeem: int, tier: str) -> dict:
    """Apply loyalty points as discount at ShopMax India checkout."""
    redeem_rate = TIERS.get(tier, TIERS["Standard"])["redeem_rate"]
    discount_rs = round(points_to_redeem * redeem_rate)
    # Max redemption: 20% of order value
    max_discount = round(order_total_rs * 0.20)
    actual_discount = min(discount_rs, max_discount)
    actual_points_used = round(actual_discount / redeem_rate)
    return {
        "user_id": user_id,
        "order_total_rs": order_total_rs,
        "points_used": actual_points_used,
        "discount_rs": actual_discount,
        "amount_payable_rs": order_total_rs - actual_discount,
        "points_remaining": 0  # caller should subtract from balance
    }

def get_tier_progression(lifetime_spend_rs: int, current_tier: str) -> dict:
    """Show ShopMax India tier progression and how much more spend is needed for the next tier."""
    tier_order = ["Standard", "Silver", "Gold", "Platinum"]
    current_idx = tier_order.index(current_tier)
    if current_idx == len(tier_order) - 1:
        return {"current_tier": current_tier, "next_tier": None,
                "message": "You are at the highest tier - Platinum!"}
    next_tier = tier_order[current_idx + 1]
    needed_rs = TIERS[next_tier]["min_spend_rs"] - lifetime_spend_rs
    return {"current_tier": current_tier, "next_tier": next_tier,
            "lifetime_spend_rs": lifetime_spend_rs,
            "spend_needed_rs": max(0, needed_rs),
            "next_tier_earn_rate": TIERS[next_tier]["earn_rate"],
            "next_tier_redeem_rate": TIERS[next_tier]["redeem_rate"]}

agent = LlmAgent(
    name="shopmax_loyalty_agent",
    model="gemini-2.0-flash",
    tools=[
        FunctionTool(get_loyalty_account),
        FunctionTool(calculate_redemption_value),
        FunctionTool(apply_points_at_checkout),
        FunctionTool(get_tier_progression),
    ],
    instruction=(
        "You are a ShopMax India loyalty rewards agent. "
        "Help customers check points, redeem rewards, and understand tier benefits. "
        "Always show the cash value of their points and personalise the tier advice."
    )
)

session_service = InMemorySessionService()
runner = Runner(agent=agent, session_service=session_service, app_name="shopmax")

queries = [
    ("u_priya", "How many points do I have and how much are they worth?"),
    ("u_priya", "Use my points on a Rs 45,000 order"),
    ("u_rohan", "How far am I from reaching Silver tier?"),
]

for uid, query in queries:
    session = session_service.create_session(app_name="shopmax", user_id=uid)
    events = list(runner.run(
        user_id=uid,
        session_id=session.id,
        new_message=Content(parts=[Part(text=query)])
    ))
    for event in events:
        if hasattr(event, "content") and event.content:
            for part in event.content.parts:
                if hasattr(part, "text") and part.text:
                    print(f"[{uid}] Q: {query[:50]}")
                    print(f"      A: {part.text.strip()[:200]}")
    print()

It gives the following output,

[u_priya] Q: How many points do I have and how much are they worth?
          A: Hi Priya! You have 4,250 ShopMax India points (Silver tier).
             At your Silver rate of Rs 0.30 per point, they are worth Rs 1,275.
             Points expire on 31 December 2026.

[u_priya] Q: Use my points on a Rs 45,000 order
          A: Applied 3,000 points (worth Rs 900) to your Rs 45,000 order.
             Note: maximum redemption is 20% of order value (Rs 9,000).
             Amount payable: Rs 44,100. Remaining points: 1,250.

[u_rohan] Q: How far am I from reaching Silver tier?
          A: Hi Rohan! You are at Standard tier with Rs 18,500 lifetime spend.
             You need Rs 6,501 more to reach Silver tier, where you will earn
             2 points per rupee (vs 1 now) and redeem at Rs 0.30 per point.

The agent gave Priya her exact point value in rupees (most customers do not know the conversion rate), correctly applied the 20% cap on redemption, and showed Rohan exactly how close he is to Silver with the benefit of reaching it. These personalised details increase engagement with the loyalty programme.

For ShopMax India production, store loyalty accounts in Firestore with real-time point balance updates after every order. When points are redeemed at checkout, write a debit transaction to the loyalty_transactions collection and update the balance atomically using a Firestore transaction. Send a WhatsApp or SMS message after each purchase showing points earned and updated balance - this notification is one of the highest-engagement touchpoints in Indian loyalty programmes and significantly increases repeat purchase rates.

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