Earn & Burn Loyalty Programs
Reward redemption
In this traditional approach to loyalty, customers earn points for the money they spend. These programs encourage customers to keep purchasing in order to reach new rewards.

Benefits of Earn & Burn Loyalty Programs
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_ Fast implementation Earn & Burn loyalty programs treat all customers equally, so there’s no need for further segmentation. When only purchases are rewarded, implementation is quick and simple.
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_ Convenient & easy to budget Earn & Burn programs are easily integrated because the rate of reward redemption is limited by the available loyalty currency. Plus, it’s less expensive than a discount system.
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_ High perceived value Customers associate these programs as great deals, even though the reward has a higher perceived value than its actual cost. In addition, unspent points further help brands to save money.
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_ Ease of use The rule for earn & burn is pretty straightforward: rack up the currency and redeem it. This simplicity allows customers to quickly grasp the system and start participating.
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_ Incentivised customer identification Since both online and in-store purchases are rewarded, customers are compelled to identify themselves - either by signing up or by showing their loyalty card.

Earn & Burn Program Examples
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Frequency Loyalty Program
Instead of receiving an instant reward, customers unlock a reward after completing a series of purchases or reaching a specific milestone. This incentive is oftentimes a free product or a one-time service.
Best fit for: Services, Hospitality
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Points-based Loyalty Program
Points are acquired through purchases (or other engagement actions) and then exchanged for rewards. Earn 1 point for each €1 spent. For every 10 points receive a €1 discount to use on your next purchase.
Best fit for: Electronics, Groceries, General Retailers
Who is it for?
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Companies facing high frequency and fast purchase decision
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Brands and retailers selling commodities
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Brands competing on value for money