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Recommendations for optimized points and rewards
Recommendations for optimized points and rewards

The core concepts for a successful rewards program πŸš€

Brandon avatar
Written by Brandon
Updated over a week ago

Found your way through onboarding, or been operational for a while, and want to make sure things are within Smile's guidelines for success? You're in the right place!

Loyalty programs do not have to be complex to be successful. Don't stress about trying to make your program the 'next best thing' - all you need is to provide your members value, and to let them know about the value you are providing πŸ’Έ

Here's the core foundation you will need to succeed, regardless of your business size:

Ways to Redeem (in-app) - the value of your rewards should be 100 points = $1 discount value. Important! See next section for why❓

First, set up an incremental reward that allows members who are impulse-driven to spend points any time they want to. Setting up this type of reward, using the above value scale, is the bare minimum you should set up to have a functional program.

Next, you will want to set up a Fixed Rewards Value Scale to target members who are goal-oriented and more likely to save up their points for a greater reward by saving up to the top reward. Here's what that will look like:




500 points


1,000 points


1,500 points


2,000 points


  • Even increments

  • Consistent value scale

  • Obtainable first reward

    • Achieved within 1-3 orders, based on your Average Order Value (AOV)


  • Change reward values from reward to reward

    • e.g. Do not set $5 = 500 pts while $10 = 900 pts

  • Have gaps in the fixed rewards scale

    • e.g. Do not set rewards for $5, $10, and then $20 without giving $15 as an option

    • Gaps in the scale will cause program members to lose sight of the next reward and increases the likelihood of them churning from your program

While a program can function with only fixed rewards, or only incremental rewards, it is important to have both. Why? Because we're all human and we all have different tendencies when it comes to spending. Target both customer profiles, impulse spenders and savers!

Earning Actions (in-app) - your 'Place an order' earning action is the first touchpoint for your customers to feel the value that you offer. Offering too little points will cause disengagement from your loyalty program, and offering too many points will eat away at your margins. We suggest:

  • Offer between 3 to 10 points per $1 spent

    • When a reward's discount value is set to 100 points = $1 discount scale, we know that every point we award per dollar spent is a percentage point.

    • For example:

      • 3 pts for $1 spent = 3% cashback

      • 5 pts for $1 spent = 5% cashback

      • 10 pts for $1 spent = 10% cashback

Referrals (in-app) - turn customers into advocates with a generous 'Referral Reward'.

  • Offer 10-20% of your AOV as a reward for both "friend" and "advocate" rewards.

    • This can be a fixed dollar amount or a percentage off. Whichever you think is best!

✨ Bonus Buildouts ✨

Once you're confident that you have the core of your program intact, you can get more robust! Here are some suggestions:

Great work getting to this point!

Now get out there and market the amazing value you are offering your customers through your loyalty program on any and all marketing channels available to your business - you've created a masterpiece, now make sure everyone knows about it 😎

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