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Tips for building loyalty rewards that drive customer engagement
Top tips and recommendations for creating effective loyalty rewards with Marsello.
March 17, 2025
Loyalty rewards are a great way to bring customers back. Here are Marsello's tips to keep your loyalty program engaging.
📖 Learn more about the different types of loyalty rewards you can create.
Tip 1: Make your reward titles creative and engaging
Add variety to your reward titles to create interest in redeeming your rewards. For example:
Tip 2: Maximize rewards with the '10% of dollar spend' rule
When choosing your points to redeem, the amount, it is recommended that you use the '10% of dollar spend' rule, e.g. your reward discount amount is 10% of the spend required to earn this number of points.
Examples of the 10% of dollar spend rule
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If every dollar spent earns 1 loyalty point
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$5 off – 50 points
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$25 off your next purchase – 250 points
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50% off 🎉 – 500 points
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If every dollar spent earns 2 loyalty points
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$5 off – 100 points
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$25 off your next purchase – 500 points
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50% off 🎉 – 1000 points
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Tip 3: Set terms and conditions for reward redemption
When creating loyalty rewards, it’s crucial to include clear terms and conditions. This ensures fair use, protects your store, and outlines how and when rewards can be redeemed as intended.
Example terms and conditions
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Not available in conjunction with any other offer
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In-store only
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Online only
📖Learn more: How to add terms to your loyalty rewards
Tip 4: Create a rewards ladder to motivate customers
Offer three or more rewards to motivate customers to earn more points and redeem them. A rewards ladder gives customers flexibility to choose rewards they want to earn points toward. Loyalty programs with 3-5 rewards see better results, including higher engagement, increased reward redemptions, and greater average spend compared to programs with just one reward.
📖Learn more about rewards ladders here
You can also check out our Success Stories for some more great ideas!
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