Glossary
What is an earn rate?
Earn rate is how fast a customer builds up credit. One stamp per coffee, say, or a set number of points per dollar. Together with how much is needed for a reward, it decides how long the programme takes to pay off.
Earn rate and threshold are two halves of one decision. Changing either changes how long the programme feels.
Stamps make it simple
In a stamp programme the earn rate is usually one stamp per item, so the number needed for a reward does most of the work.
Points give you a second lever
In a points programme you can adjust earn rate and threshold independently, which is more expressive and correspondingly easier to get wrong. Change one at a time.
Related terms
- Burn rateHow quickly customers spend accumulated loyalty credit.
- Reward thresholdHow many stamps or points a customer needs before a reward unlocks.
- PointsLoyalty credit that counts the money spent, rather than the things bought.
- StampOne step towards a reward, earned by buying something the business has chosen.