Benefits of Earn & Burn Loyalty Programs
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.
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.
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.
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.
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
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
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?
Companies facing high frequency and fast purchase decision
Brands and retailers selling commodities
Brands competing on value for money