Points-based loyalty program
Updated September 30, 2026
In one sentence
In a points-based loyalty program, every dollar spent earns points that the customer later exchanges for a reward.
When to choose it
Points work well when basket sizes vary a lot: a customer who spends $80 earns more than one who spends $8, which a stamp card cannot do. You often see them in pet stores, restaurants and specialty food shops.
Traps to avoid
Points are harder to read than stamps: “340 points” does not tell the customer what to expect. Always show the next reward and what is missing to get it. Keep the scale simple, for example 1 point per dollar and a reward every 100 points. Depending on where you operate, rules may govern points expiry: check them before setting a date.
A pet store gives 1 point per dollar. At 150 points, the customer gets a $10 voucher; their card shows “35 more points to your voucher”.
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