A reward points campaign gives customers value they can keep and use after a qualifying purchase. Instead of reducing the price only at the moment of sale, the business adds Reward Points to the customer's balance according to predefined campaign rules.
This makes the campaign useful for businesses that want to connect today's purchase with a future customer action. The key, however, is not simply offering more points. A good campaign needs a clear earning model, sensible limits, understandable conditions and a redemption experience customers can actually use.
If you are evaluating this type of program for the first time, start with the broader loyalty points and cashback model, then design the campaign around your own purchase frequency, average transaction value and margins.
What makes a good reward points campaign?
A good reward points campaign gives customers an easy-to-understand reason to earn and later use points without creating an unnecessarily expensive reward structure for the business.
Before launch, decide how points are earned, whether a minimum purchase applies, whether earnings need a maximum limit, how long points remain valid and how the campaign will be explained to customers.
Start with the business objective, not the points percentage
It is tempting to begin by asking whether customers should earn 5%, 10% or a fixed amount of points. That decision should come later. First determine what customer behavior the campaign is designed to support.
You may want to make the loyalty proposition more valuable for frequent customers, encourage customers to reach a meaningful transaction threshold, or create a balance they have a reason to use on a future purchase. These goals can lead to very different campaign settings.
This distinction also matters because a short-term promotion and a broader loyalty strategy are not the same thing. If you are still defining that relationship, see the guide to the difference between campaigns and loyalty programs .
The 6 decisions to make before launching a reward points campaign
1. Define the campaign goal
Decide what the points are intended to encourage before choosing the earning rate or reward amount.
2. Choose the earning model
Use either a fixed Reward Points amount after a defined spend or points proportional to the customer's spending.
3. Set the minimum order amount
Decide whether customers must reach a minimum transaction value before they can earn points.
4. Consider an earning cap
A maximum earnable amount can keep unusually large transactions from generating more points than intended.
5. Decide how long points remain valid
Choose an expiration period or leave the points without a defined expiration limit when that better fits the program.
6. Make the rules easy to understand
Give the campaign a clear name, short description and detailed explanation so customers know what they can earn.
Fixed points or percentage-based points?
Letstamp supports two basic approaches when defining how Reward Points are earned. You can give customers a fixed amount after a certain spending amount, or calculate the reward proportionally from the transaction value.
| Model | Example | Main advantage | What to consider |
|---|---|---|---|
| Fixed Reward Points | Earn $10 in Reward Points after a qualifying spend | Easy for customers to understand | Choose a spending requirement that fits typical purchases |
| Percentage-Based Reward Points | Earn 5% of the purchase value in Reward Points | Reward value scales with customer spending | Consider whether a maximum earning limit is appropriate |
Neither option is automatically better. A fixed model can make the benefit extremely clear, while a percentage-based model creates a more direct relationship between spending and earnings. The right choice depends on your pricing structure and campaign objective.
Set the earning rate from the economics backwards
The most visible number in a points campaign is often the percentage or fixed reward amount, but it should not be selected simply because it looks attractive in advertising.
Consider the normal transaction value, gross margin differences across your products or services, how frequently customers typically return and how much reward value the business is comfortable issuing. The objective is to create a benefit that customers can understand without making the reward structure unnecessarily costly.
Should you use a minimum order amount?
In Letstamp, the minimum order amount determines how much a customer must spend before the transaction qualifies for Reward Points. Setting it to 0 removes that minimum requirement.
A minimum amount can be useful when very small transactions should not trigger the campaign. It can also help align the reward with a transaction value that makes sense for the business.
Avoid setting the threshold only by looking at the number you would like customers to spend. If the requirement is far above a normal purchase, the campaign may feel difficult to reach. Use actual customer purchasing patterns as the starting point for the decision.
Use a maximum earning limit when you need predictable boundaries
Percentage-based rewards can generate a much larger points amount when the transaction value rises. Letstamp therefore allows a maximum earnable Reward Points value to be defined. If no maximum is needed, the limit can be left at 0.
For example, a campaign could award 10% in Reward Points while limiting the maximum points earned from one qualifying transaction to $20. The exact figures should reflect the economics of the business; the important principle is that the earning cap gives you another way to control campaign exposure.
Design the rate, threshold and cap as one system
Instead of asking only “How many points should we give?”, test a few complete campaign scenarios. Compare what a small, typical and large transaction would earn under each model before activating the campaign.
Give the points an expiration rule that matches the customer cycle
Letstamp allows you to define how many days customers have to use Reward Points after earning them. You can also configure the points without a defined expiration limit.
The appropriate choice depends on how often customers naturally return. A business with frequent purchases may use a different time window from one where customers normally buy only every few months.
The expiration rule should also be clearly explained in the campaign description. A points balance is much easier to understand when the customer knows both how it is earned and how long it remains available.
Do not confuse point expiration with campaign expiration
These settings answer two different questions. The campaign expiration determines how long the campaign itself remains available for earning. The Reward Points expiration determines how long earned points can be used after they reach the customer's account.
In Letstamp, a Reward Points campaign can be configured as unlimited until manually stopped or as a timed campaign with an end date. Separately, the earned Reward Points can have their own usage period.
| Setting | Controls | Example question |
|---|---|---|
| Campaign Expiration | How long customers can participate and earn | Can customers still earn points next month? |
| Reward Points Expiration | How long already-earned points remain usable | How long does the customer have to spend these points? |
Make the points balance understandable after the purchase
The earning rule is only one part of the experience. Customers should also be able to understand the value they have accumulated and what happens when they use their Reward Points.
In the Letstamp customer application, Reward Points transactions can show earned and spent points. This gives the customer a practical record of activity rather than leaving the reward as an abstract campaign promise.
See how customers use LetstampThink about redemption before you think about promotion
A points campaign is incomplete if the business focuses only on how customers earn. You should also decide how Reward Points fit into the wider customer experience and what customers can eventually do with their balance.
Letstamp can also be used with a product catalog , where customers can spend the Reward Points they have earned on products supplied by the business. Whether you use that model or another Reward Points redemption flow, define the intended use before promoting the campaign.
Reward Points can become more tangible through a product catalog
When a catalog is part of the loyalty experience, customers can see products made available by the business and the number of Reward Points required for them.
This approach can make the purpose of earning points easier to understand because the customer can connect the balance with specific reward options.
Make the campaign conditions obvious
Reward programs become unnecessarily complicated when the business can explain the offer only with a long set of exceptions. Customers should be able to understand the core value quickly: what they need to do, what they earn and how long they can use it.
Letstamp provides campaign name, short description and detailed description fields. Use them to communicate the earning rule and relevant restrictions in plain language rather than relying on the campaign title alone.
For example, “Earn 5% in Reward Points on qualifying purchases, up to $20 per transaction” communicates considerably more than a generic title such as “Rewards Campaign.”
Reward points campaign examples
The following models illustrate how the available settings can be combined. They are examples rather than universal recommendations; your own values should reflect your pricing and customer behavior.
Percentage-Based
Give customers Reward Points proportional to spending, such as 5%, with an optional maximum earning limit.
Fixed Amount
Award a defined Reward Points amount after the customer reaches a specified spending requirement.
Capped Percentage
Use a proportional earning rate while defining a maximum amount that can be earned from a transaction.
How to configure a Reward Points campaign in Letstamp
Once the campaign logic is decided, the actual configuration becomes much simpler. Letstamp separates the general campaign details, appearance and reward settings so the offer can be defined explicitly.
- Add a clear campaign name, short description and detailed description.
- Choose whether the campaign is unlimited or has an end date.
- Decide whether the campaign should currently be visible to customers.
- Select the campaign icon and icon color.
- Add the Reward Points title and description.
- Choose a fixed or proportional Reward Points model.
- Define the minimum order amount if one is required.
- Set the percentage rate when using proportional earnings.
- Add a maximum earnable Reward Points value when needed.
- Define the Reward Points expiration period or leave it unlimited.
How Reward Points transactions work in Letstamp
For a manual Reward Points transaction, the business starts by asking for the transaction code on the customer's phone or scanning the QR code. The operator then selects the Reward Points transaction and enters the sale amount. Applicable campaign points are calculated and added to the customer's account.
When Reward Points are redeemed, the customer's transaction code or QR code is used again. The operator selects the Reward Points redemption action, enters the amount to use and completes the redemption.
Businesses that want a broader overview of the workflow can also read how to use Letstamp in a business .
Promote the campaign to the right customers
Campaign design and campaign communication should be planned together. Once the reward structure is understandable, you can decide which customers should hear about it and through which channel.
Letstamp includes customer segmentation for working with predefined customer behavior groups. Selected customers can then be reached through supported channels such as push notifications or SMS messaging .
Communication should explain the actual campaign rule rather than simply saying that customers can “earn rewards.” Include the earning condition, relevant limit and expiration information when those details materially affect the offer.
Common reward points campaign mistakes
An unclear earning formula
Customers should not need to calculate several conditions before understanding how they earn points.
Ignoring high-value purchases
Percentage models should be tested against larger transactions so unexpected reward costs are visible before launch.
Arbitrary expiration periods
An expiration window should reflect the normal customer purchase cycle rather than being chosen without context.
Focusing only on earning
Define how customers will understand and eventually use their Reward Points before promoting the campaign.
Reward points campaign pre-launch checklist
Before making the campaign visible, run through the customer journey and the campaign economics one final time.
- Is the objective of the campaign clear?
- Can the earning rule be explained in one or two sentences?
- Have typical and high-value transactions been tested?
- Is the minimum order amount realistic for normal customers?
- Is a maximum earning limit required?
- Does the points expiration period fit the normal purchase cycle?
- Are campaign expiration and points expiration configured separately?
- Does the customer understand where the Reward Points can be used?
- Are the campaign name and descriptions accurate?
- Is campaign visibility set correctly before launch?
Build the points campaign as part of a wider loyalty strategy
Reward Points can be a central loyalty mechanism, but they do not have to operate alone. Different customer behaviors may be better served by different campaign models.
For example, digital stamp cards can support visit- or item-based progress, while coupon campaigns can provide a defined promotional reward. Understanding these differences helps prevent a points campaign from being used for every possible objective.
For a wider comparison of approaches, see three customer loyalty models with Letstamp .
