Loyalty
Earn Rate
Points Earn Rate
The rate at which customers accumulate loyalty points for purchases or activities, typically expressed as points per dollar spent.
What is Earn Rate?
Earn rate determines how quickly customers accumulate points. It's a key lever in loyalty program economics.
Setting earn rates:
- Consider your margins
- Compare to competitors
- Balance engagement vs cost
- Can vary by tier/status
- Can vary by product category
Common earn rate structures:
- Flat: 1 point per $1 spent
- Tiered: Higher tiers earn more
- Category-based: Different rates by product
- Bonus: Promotional multipliers
- Activity-based: Points for reviews, etc.
Earn rate psychology:
- Bigger numbers feel better (10 points > 1 point)
- Progress visibility matters
- Accelerators create excitement
- Round numbers are cleaner
Example
At 10 points per $1, a $50 purchase earns 500 points.
Why Earn Rate Matters
Earn rate affects perceived value and program economics—get it right for engagement and profitability.
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