1) Keep your rewards simple
Keep the relationship between your points and the tangible rewards as simple as possible. Complex and confusing structures are more of a headache than a reward. Keep the conversions simple and intuitive, something your customers can understand and appreciate with a quick glance.
2) Use a tier based system to encourage more visits
It is essential to find a balance between attainable and desirable rewards. A tier based points system that gives the customer an immediate incentive for the initial signup and then encourages more purchases is the best way to get your customer on-board. We recommend presenting small rewards as a base offering for being a part of your loyalty program, and then encouraging repeat visits and spending by increasing the value of the rewards as the customer moves up the loyalty ladder. This also helps solve the problem of too much time between purchase and redemption.
3) Plan your rewards around your customers desired values
Truly understanding your customer means understanding what they cherish and what drives their sense of worth. Depending on your business, your customers may find more value in non-monetary rewards, for example a reward that lets them "name their own drink for a month". While any company can offer promotional coupons and discount codes if you can have your relate customers relate to your business in ways other than dollars and cents then you have a unique opportunity to connect with them.
4) Try make your rewards a fun game
Everyone loves a good game. Through a well thought-out point system, you can turn your loyalty program into a game to encourage repeat customers and to convert your most passionate customers into your brand ambassadors. The idea is to make the buying process both fun and engaging.