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What rewards should I set for my points-based loyalty program?
What rewards should I set for my points-based loyalty program?

How to decide what rewards would best suit your business's loyalty program

Massimo Sirolla avatar
Written by Massimo Sirolla
Updated over a week ago

Points are designed to reward customers based on how much they spend. They are much better suited than a stamps-based program because it's inclusive and not product/service specific. It also means that you reap the benefits of driving higher spend from your customers. 

It can be difficult deciding on what rewards to offer but we have an easy way to help you. We recommend allocating 1 point per pound/dollar/euro spent. Basing your reward targets around your customers average spend is the best way to tailor your loyalty program to your business.

The video below will show you how you can easily set up the right rewards for your customers.

Use this algorithm to set up your first points reward (in our example we are using a customers average spend of $20 with 4x visits/month)

(Average spend + 10%) x Average visits/month

(20 + 10%) x 4 = 88

In this example, the customer must spend $88 to get their first reward. In most cases, the customer will increase their spending or visits to get their reward, in turn helping to increase your revenue.  Get creative, and set up to 10 rewards (our recommended number of rewards is 3). Increase the number of points each time you set a reward and ensure the reward reflects the value of points set.  Then watch your customers average spend increase.

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