Earn & Burn – Reward redemption

Earn & Burn – Reward redemption

In this traditional approach to loyalty, customers earn points for every euro they spend. The program encourages customers to keep purchasing in order to reach new rewards.

Benefits

Ease of use

The rule here is pretty straightforward: rack up the loyalty currency and redeem it. Customers can quickly grasp the rules and start participating.

Incentivized customer identification

Since all kinds of purchases are rewarded, customers are compelled to identify themselves both online and offline.

Fast implementation

As Earn & Burn loyalty programs treat all customers equally, there’s no need for further segmentation. The implementation process is very quick and easy.

Convenient and easy-to-budget

These programs are easy to manage because the rate of reward redemption is determined by the available loyalty currency.

High perceived value

Customers see the rewards as great deals, believing they have a higher value than the actual cost. This has a positive effect on engagement rates.

Limitations

Earn & Burn loyalty programs build transactional loyalty only, which reinforces discount culture. Moreover, it’s difficult to add relevant personalization, and competitors can easily copy the formula with better discounts because it lacks a unique selling point.