Loyalty Point Definition
Loyalty points are a type of currency that a business offers within a loyalty scheme. They can have a monetary value, respected in that particular brand (allow for pay-with-points reward), or be exchangeable for a set of rewards defined in a rewards catalog. The way and rate at which customers earn points is defined by earning rules and points multipliers which can differ between loyalty tiers.
If your are running a point-based loyalty program, you can give points a special name that is in line with your brand. Here are some ideas:
- "Cork" for alcohol-selling businesses.
- "Page" for bookstores.
- "Buttons" for fashion stores.
- "Steps" for fitness apps.
Examples of unique names of loyalty points
Starbucks offers their customers the possibility to earn loyalty points named "stars," which then allow the customers to take advantage of the offered benefits.
Lufthansa, together with their 40 airline partners, allows its frequent flyers to use loyalty points which are called "miles" in order to take advantage of the Miles&More frequent flyer program.
Remember that by giving a special name to your points, you build a cohesive customer experience, and show that your rewards program is part of your brand community experience, not an afterthought.