Some might say earn & burn programs are outdated. It’s safe to say they’re wrong. Somewhat of a bold statement, I know, but(!) the simple fact is that earn & burn loyalty programs are: reliable, scalable, and able to drive repeat business and long-term engagement. They reward customers with points for actions—primarily purchases—which can later be exchanged for discounts, products, or experiences. Sounds quite simple, right?
While the concept itself might be simple, implementing such a program at scale introduces several complexities related to technology, finance, and global operations. In this guide, we’ll explore everything marketers and loyalty professionals need to know to design, launch, and optimize an earn & burn loyalty program.
Need a little headstart on crafting your ideal loyalty program concept? Check out our free, user-friendly, downloadable Loyalty Program Concept Worksheet.
Key Takeaways – TL; DR
- Large-scale earn & burn loyalty programs require robust, scalable tech to manage global complexity while offering a simple user experience.
- Earn-and-burn loyalty programs offer an accessible model for driving measurable engagement.
- Success depends on both transactional and non-transactional earn mechanics, plus strategic, motivating redemption options.
- Managing points liability, compliance, and cross-border currency structures are critical at scale.
Table of Contents
Understanding Earn & Burn Mechanics
Earn & burn loyalty programs appeal to brands for several compelling reasons. First, they’re easy for customers to understand—earning and redeeming points is a simple, familiar concept that accelerates program adoption. From an implementation perspective, this model offers agility, enabling large-scale businesses to roll it out quickly across multiple regions with a consistent experience.
These programs also deliver high perceived value; customers often feel they’re receiving more than they spend, especially when rewards are well-curated. Financially, enterprises benefit from predictable budgets—unlike across-the-board discounts, points only incur costs when redeemed. Plus, if points expire unused, the company retains those earnings.
Most importantly, this model incentivizes data sharing. Customers are motivated to identify themselves at every touchpoint—online, in-store, in-app—to earn points, which in turn enriches customer profiles and improves segmentation.
Strategic Earning Mechanisms for Earn & Burn Loyalty Programs
Strategic point-earning rules are crucial for aligning loyalty program mechanics with broader business objectives. Companies should design their base earn rate based on average order values and desired margin impact, and then normalize these rates across currencies for a global customer base.
Promotional earning campaigns are another vital strategy. Brands can offer double or triple points during quiet periods, or award extra points for purchases in underperforming categories. Behavior-based rewards also play a key role, such as issuing points for completing a first mobile app purchase or subscribing to SMS updates. Importantly, enterprise programs must strike a balance between global consistency and local market flexibility. For example, a brand might keep core earning rules consistent worldwide while allowing regional teams to customize promotions or partnerships to better fit their customer base.
Brands can create tiered earning structures that reward loyalty over time—such as offering Silver members 1.2x points and Gold members 1.5x. These tiers encourage increased spending and elevate status appeal.
Transaction-Based Earning Rules
Setting up effective transaction-based earning rules is essential for controlling program costs and maintaining clarity for the customer. Large companies, like enterprises, typically start with a fixed base earn rate—such as 1 point per $1 spent—which is easy to understand and communicate. For low-margin businesses, this may be adjusted to smaller denominations, such as 1 point per $0.10. These rates must be normalized across different currencies to ensure fairness. Rather than assigning one point per local currency unit, it’s more equitable to establish a conversion model tied to a base currency.
Additional layers to consider:
- Brands must consider whether to exclude gift card purchases, high-cost items, or heavily discounted goods.
- Returns are another challenge—most enterprises delay awarding points until after the return window closes, designating them as “pending” until that point.
- Some businesses implement earning caps to prevent system abuse or to manage financial exposure.
- Transaction-based bonuses, such as channel-specific or payment method promotions, help direct customer behavior in meaningful ways—whether that’s encouraging app adoption or usage of a co-branded credit card.
Non-Transactional Earning
Loyalty programs that go beyond spend-based models tend to foster deeper emotional loyalty and longer engagement.
Customers can be rewarded for non-transactional behaviors such as:
- Completing their profile,
- Writing product reviews,
- Referring friends,
- Following the brand on social media,
- Participating in brand-hosted events.
These actions not only build connections but also deliver measurable value to the business in the form of data, word-of-mouth marketing, and user-generated content. These lifestyle-aligned incentives build a stronger bond between brand and consumer. Non-transactional earning also drives the collection of zero-party data—information that users willingly provide—empowering brands to personalize experiences and improve communication.
Strategic Redemption (Burn) Mechanics for Earn & Burn Loyalty Programs
Encouraging redemption isn’t just about delighting the customer—it’s also a way to manage financial liability. Programs that see high redemption rates tend to also see higher overall customer satisfaction and increased lifetime value.
However, redemptions must be easy and accessible:
- Tiered redemption rates—where higher-value redemptions offer better point-per-dollar ratios—can encourage saving without deterring participation.
- Offering partial redemptions, such as points plus cash, ensures flexibility and appeals to members with lower balances. Hilton Honors’ Points & Money Rewards™ slider is a great example of this concept.
- Reminding members when their points are about to expire helps prevent silent breakage while driving urgency.
- Special redemption campaigns—such as limited-time reward auctions or exclusive experiences—generate excitement and can strategically reduce overstocked inventory or high liability balances.
Yeo Valley Organic’s Yeokens loyalty program is a great example of a truly engaging loyalty program, with earn and burn at the heart. Watch the video and check out our in-depth case study article to see how they’ve achieved success.
Reward Catalog Strategy, a.k.a the Perfect Reason to Earn
The quality of a reward catalog can make or break a loyalty program. A compelling catalog not only encourages redemptions but also serves as a constant reminder of the program’s value. To stay relevant, it should be refreshed regularly and customized when possible.
To truly satisfy modern customer expectations, brands should offer a mix of practical rewards—such as vouchers or product discounts—and aspirational rewards, including experiences, services, or luxury merchandise, depending on your industry and customer feedback. Limited-time or seasonal items can be used to generate urgency, while branded merchandise helps turn loyal customers into brand ambassadors.
Points Redemption Structures
Redemption structures determine how and when members use their points, which directly affects engagement and liability:
- Fixed-value redemptions (e.g., 100 points = $1) make the value proposition clear and predictable.
- Variable-value models can offer better rates for specific rewards, adding a layer of strategy for customers.
- Minimum thresholds help avoid frequent redemptions that could bloat administrative costs.
- For high-ticket rewards, partial redemption (e.g., points + cash) ensures that every member, regardless of balance, can find value in the program.
- Auto-redemption features, such as applying points at checkout, streamline the experience but should be used carefully to preserve the feeling of reward fulfillment.
Additionally, group and family accounts allow pooling of points—a feature favored by over 76% of consumers—according to extensive research prepared for our Global Customer Loyalty Report 2025. This concept not only supports engagement from multiple users but also boosts enrollment by giving members a reason to refer others.
Enterprise Technology Requirements for Points-Based Programs
A robust technology foundation is essential for scaling an earn-and-burn program. Scalability and uptime are non-negotiable, especially for global brands that operate in multiple time zones.
What Makes an Enterprise Earn and Burn Program Different From Standard SMB Points Programs?
Enterprise programs span regions and brands, requiring advanced tech, customization, and compliance. Unlike SMB (Small and Midsize Business) programs, they support multi-market needs, larger member bases, and deeper business insights.
What Technology Infrastructure Is Required to Support Global Enterprise Points Programs?
Global programs need an API-first, modular platform with real-time integrations, no-code tools, strong security, fraud detection, multilingual support, and scalable analytics to manage data across systems. The platform must handle real-time point calculation, tier management, complex rule logic, and seamless integration with POS, CRM, and mobile systems.
User-friendly admin tools, such as Antavo’s Workflow Editor, allow marketers to configure campaigns and earn rules without relying on IT, speeding up time to market. Dashboards and export capabilities provide clear views of points liability, breakage, and ROI.
Implementing Earn & Burn Programs
The implementation and/or migration of earn-and-burn loyalty programs involves multiple departments and meticulous coordination:
- Begin with clear KPIs: Are you aiming for improved retention, increased frequency, or higher AOV?
- Then, map out earning and burning rules, expiration settings, and tier logic.
- Platform selection should prioritize open APIs, integration readiness, and security credentials.
- Once chosen, migration must be handled carefully, especially when transferring member data and existing point balances.
- Cross-functional training is vital to prepare frontline teams and customer support.
- Finally, launch with a strong marketing push—consider teaser campaigns, limited-time bonuses, and welcome offers.
- Post-launch, track KPIs, collect feedback, and iterate regularly.
Case Studies: Points Program Success Stories
Hyatt’s Inclusive Collection redefined B2B2C loyalty with Confidant Rewards—an earn-and-burn loyalty program that incentivizes travel advisors through bookings, learning, and engagement campaigns. Powered by Antavo, the program awards bonus points for high-value actions and offers premium rewards, from free stays to cash bonuses. Since launch, the program has driven a 43% YoY increase in hotel bookings and a 42% revenue boost, and 97M points redeemed in total, proving how the right earn-and-burn strategy can align business goals with meaningful rewards.
Whittard of Chelsea proves that simplicity can be powerful. Its earn-and-burn loyalty program, Whittard Rewards, allows customers to collect points with every purchase and redeem them for meaningful rewards—no complicated tiers, just instant value. What sets it apart? A frictionless omnichannel experience, powered by Antavo’s mobile wallet and API-driven platform. Whittard has created a loyalty journey that delights shoppers and drives engagement both in-store and online, achieving 25% of its annual target for loyalty member acquisition just a month after the hard launch.
Measuring Points Program Success
Redemption rate is a key metric, showing how compelling your rewards are. While 48–50% is the industry average, enterprises should aim higher. Track active members monthly, monitor new sign-ups, and identify drop-offs to refine re-engagement campaigns.
Revenue metrics like AOV, LTV, and purchase frequency are essential for proving ROI. For instance, members who redeem points show up to 6.3x higher lifetime value. Don’t forget financial metrics—breakage, operating costs, and points liability forecasting all contribute to understanding the true cost of loyalty.
Track these KPIs to optimize performance:
- Redemption Rate (target: 50%+)
- Points Breakage (target: balance with burn rates)
- AOV (Average Order Value) & Purchase Frequency
- Retention & Lifetime Value (LTV)
- Tier migration and segment engagement
- Points liability forecasting
- NPS (Net Promoter Score) and member satisfaction
- ROI (Return on Investment)
Future of Earn & Burn Programs Loyalty Programs
Loyalty is entering a new era. AI personalization will tailor rewards and offers in real time. Loyalty will become embedded in the customer experience, suggesting redemptions at checkout or even via smart devices.
Gamified challenges, social features, and community-driven experiences will become the norm. Expect more brands to explore coalition loyalty, family pooling, and value-based rewards like donations or sustainability initiatives.
As blockchain and digital assets evolve, so too will the concept of loyalty currency. Leaders who embrace these innovations will build deeper, more lasting customer relationships.
Ready to Take the Next Step on Your Loyalty Program Journey?
Earn-and-burn loyalty programs remain a cornerstone of successful customer engagement—combining simplicity, scalability, and measurable ROI. When powered by the right technology, this model not only incentivizes transactions but also unlocks valuable customer data and fosters lasting brand relationships.
Whether you’re launching from scratch or enhancing an existing program, a thoughtfully designed earn-and-burn strategy—backed by agile tools like Antavo—can deliver standout business results and a seamless experience that keeps customers coming back.
Connect with our expert team, who will provide all the necessary information on loyalty program concepts and answer any questions you might have. Make sure to book a demo or include Antavo in your RFP process.
Don’t forget to download our handy and user-friendly Loyalty Program Concept Worksheet.
Zsuzsanna is a Loyalty Specialist with years of experience in digital marketing and e-commerce. Zsuzsanna is known for having an analytic approach and high-level communication skills, helping her deliver engaging content. In her free time, she enjoys watching Formula 1 and listening to endless Taylor Swift playlists.
