Burn rate (or redemption rate) determines what points are worth when redeemed. Combined with earn rate, it defines your program's value proposition. Burn rate considerations: - Points per dollar of reward - Minimum redemption thresholds - Reward option values - Tier-based differences Example calculation: If 100 points = $5 off, burn rate = 20 points per $1 value Balancing burn rate: - Too high (expensive for customer): Low engagement - Too low (cheap for customer): Margin pressure - Sweet spot: Clear value, sustainable economics Best practices: - Clear, simple redemption math - Valuable but sustainable - Compare to competitor value - Consistent across reward types