Ways to develop an successful earn and burn loyalty program

Dec 01st, 2023
477 views 5 MINS READ

In a highly competitive marketplace that is constantly evolving, the foremost challenge in marketing for any brand is securing customer loyalty. Companies tirelessly brainstorm for fresh approaches to attract customers, yet nothing proves as effective as the earn-and-burn loyalty strategy, sometimes referred to as a point-based loyalty strategy.

The significance of a well-executed earn and burn loyalty program cannot be overstated when it comes to retaining customers, and customer retention is absolutely critical for your business. Here’s why:

Curious to learn how we could assist you? Simply provide your email and phone number, and we’ll promptly reach out to you!

The expense of acquiring new customers far surpasses that of maintaining existing ones. A mere 5% improvement in client retention can yield a remarkable 95% increase in profitability. Acquiring new customers can be anywhere from 5 to 25 times costlier than retaining your current customer base.

Returning customers have the potential to evolve into brand advocates, actively participating in user-generated content sharing or spreading positive word-of-mouth about your product or service.

earn and burn program

Read more: What is a loyalty program?

What is earn and burn loyalty and how does it work?

When discussing loyalty programs in general, the notion of earn and burn loyalty programs or point-based program often springs to mind. This strategy, while fundamental, has proven to be highly effective. Customers accumulate points by engaging in activities designated by a brand and subsequently exchange or redeem these points for discounts, rewards, or incentives.

This straightforward yet convenient concept resonates with customers’ psychology worldwide, earning their trust. The idea of ‘earning and saving points for future benefits’ is widely embraced because of its reliability, track record, and proven effectiveness. Moreover, the earn and burn loyalty approach can also provide reassurance to frequent or returning shoppers, encouraging them to spend more in pursuit of future rewards through loyalty redemptions.

How can one gain earn and burn rewards?

You have the opportunity to incentivize customers by implementing a point-based loyalty program that rewards them for their spending. Each rupee spent by customers will accumulate earn-and-burn reward points, which they can subsequently use as rupee credits for future purchases. Successful instances of this loyalty program model can be observed in digital wallet services like Google Pay, Amazon Pay, and similar platforms.

What makes the earn and burn loyalty program widely beloved?

Efficient Implementation 

Earn and burn loyalty programs treat all customers equally, eliminating the need for additional segmentation. Implementing them is quick and straightforward, especially when rewarding only purchases. 

Cost-effective and Convenient 

Earn and burn programs are easy to set up because the rate of reward redemption is limited by the available loyalty currency. Moreover, they are more budget-friendly compared to discount systems. 

Perceived High Value 

Customers perceive these programs as offering great value, even though the incentives have a higher perceived worth than their actual cost. Additionally, unused points allow brands to save money. 


The rule for earn and burn is straightforward: accumulate cash and redeem it. Customers can easily grasp the concept and start earning points due to its simplicity. 

Builds Customer Database 

Customers are required to identify themselves, either by signing up or by presenting their loyalty card, as both online and in-store transactions are eligible for rewards.

user friendly

How to ensure the success of your earn and burn loyalty program?

Educate Your Customers

Make them feel special by giving them opportunities to earn and redeem rewards. Even small changes can greatly boost customer loyalty. Let your clients choose rewards they like, and create a program based on what they prefer.

Offer Different Ways to Collect Points

Your company and marketing goals are diverse, so should be your loyalty program. Create various ways for customers to earn points that align with your marketing strategy. For example, if you aim to get more customers, reward those who refer others. Likewise, collaborating with a loyal partner can help you reach your business goals through the loyalty program.

Collaborate with Charitable Organizations

Work together with charities to show that your business cares about social responsibility. Create a loyalty program that lets your customers join in too. They can donate their loyalty points to a good cause, creating a positive feeling and strengthening your relationships with customers.

Collaborate with Other Brands

Even with financial constraints, diversify your rewarding options by collaborating with other businesses. This approach provides consumers with a broader selection of rewards, expanding the scope of loyalty redemption. A joint program can mutually benefit both parties and enhance customer satisfaction.

Reward Social Sharing

Strengthen your social media presence by incentivizing customers to share your posts, leave reviews, and comments. By rewarding such social engagement, you can build user-generated content and enhance your online visibility. Organic promotions generated through loyal customers can significantly boost brand awareness.

Design gamified rewards

Move beyond monetary incentives and consider providing customers with memorable experiences. Design gamified rewards that are aspirational or experiential. Experiential rewards, such as concerts, events, and cultural activities, create lasting memories for customers, contributing to a positive brand association.

About ezLoyalty, your ultimate API-Centric Loyalty platform. We specialize in delivering comprehensive loyalty solutions tailored to address your business challenges. With a proven track record of implementing earn-and-burn loyalty programs through our core platform, we’ve consistently helped businesses worldwide boost profitability, foster stronger customer relationships, and enhance customer retention.

Back to blog page