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By structuring your rewards strategically, you can create a fun, compelling experience that incentivizes shoppers to spend more and return often. This guide shows you how to design a tiered reward structure that will maximize customer engagement. Gemini_Generated_Image_11nxt711nxt711nx ✏️Note: Customers only earn points on the subtotal of their purchase, not the post-tax total.

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Design a Tiered Reward Structure

The most effective loyalty programs use a tiered structure (3–5 distinct rewards) to gamify the shopping experience. This gives shoppers clear, progressive goals to work toward, driving adoption and engagement. Use the three core tiers below as your foundation, and remember that every dollar spent earns one point for the member.
TierShopper GoalRecommended Reward TypeExample Reward
LowQuick win, frequent redemption.Free Item or Store-Branded Item.Free avocado or a store tote bag.
MediumIncrease basket size.Transaction Discount with minimum spend.5Off5 Off 35+ (Must spend $35 or more).
HighLong-term loyalty goal.Large Discount or Percentage Off.10% Off a $100+ purchase.

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Best Practices for Reward Tiers

Design each tier with a specific business outcome in mind, setting the point value and reward type to drive the desired shopper behavior.

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Low Tier: The Quick Win

The low tier is about early engagement. It gives new members a fast, satisfying win that confirms joining was worth it.
  • Reward Type: Free Item Savings or Store-Branded Item.
  • Point Cost: Set this at a low threshold (e.g., 50–100 points).
  • Value: Select inexpensive, always-in-stock staples (e.g., bananas, a single bakery item) or store-branded items (e.g., a tote bag or coffee mug).
  • Rationale: Set this reward to an item with a retail value of 1–1–3 (roughly 2–3% of the points required to earn it). Store-branded items are excellent low-cost rewards that turn shoppers into walking brand advertisements.

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Medium Tier: Drive Basket Size

This is the most strategically important tier. Use it to move the needle on how much shoppers spend per trip.
  • Reward Type: Transaction Discount (a flat dollar amount off).
  • Goal: Set the minimum spend 5–10% above your store’s average basket size (ABS) to encourage shoppers to add one more item.
  • Setting the Minimum Spend:
    1. Find your current ABS in your Vori reports.
    2. Multiply your ABS by 1.05–1.10 to get your minimum spend amount.
    3. Enter that amount in the Minimum Spend on Discount field when creating the reward in Vori.
  • Example: If your ABS is 30,settheminimumspendat30, set the minimum spend at 33–35.Arewardnamelike"35. A reward name like "5 Off $35+” sets clear expectations and prevents confusion at the POS.
Medium Tier: Drive Basket Size
Avg Basket Size (ABS)Min. Spend on DiscountDiscountPoints to Earn
$2022–22–23$2 Off150–200 pts
$2527–27–28$3 Off175–225 pts
$3032–32–33$3 Off200–250 pts
$3537–37–39$4 Off225–275 pts
$4043–43–44$4 Off250–300 pts
$5053–53–55$5 Off275–325 pts
$6063–63–66$6 Off300–350 pts
$7579–79–83$7 Off325–375 pts
$100+105–105–110$10 Off375–425 pts
💡 Tip: Always include the minimum spend in the reward name (e.g., “5Off5 Off 35+”). Shoppers see this at checkout and it removes any guesswork.

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High Tier: The Long-Term Goal

This reward is designed for your most loyal shoppers and functions as the program’s centerpiece for long-term gamification.
  • Reward Type: Percentage Off or a Large Dollar Amount Off
  • Point Cost: 500–750 points or more
  • Rationale: A high point threshold means shoppers need to return multiple times over weeks or months to earn it. That sustained engagement is exactly what cements loyalty. The harder it is to earn, the more it means when they do.
High Tier: Long-Term Goal
Avg Basket Size (ABS)DiscountPoints to EarnApprox. Trips to Earn
$20$5 Off or 10% Off500 pts~25 trips
$25$5 Off or 10% Off500 pts~20 trips
$30$7 Off or 10% Off550 pts~18 trips
$35$7 Off or 15% Off600 pts~17 trips
$40$8 Off or 15% Off625 pts~16 trips
$50$10 Off or 15% Off650 pts~13 trips
$60$10 Off or 15% Off700 pts~12 trips
$75$12 Off or 15% Off725 pts~10 trips
$100+$15 Off or 20% Off750+ pts~8 trips

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Seasonal and Fun Rewards

Once your core tiers are set, create temporary rewards to keep the program engaging.
  • Use Seasonal Items: Add rewards for items like a free pumpkin in October or a packet of seeds in the Spring.
  • Custom Campaigns: Tie these fun rewards to an SMS campaign to promote them for a limited time