Point-based reward systems are a popular foundation for many loyalty programs. These systems assign a point value to user actions, allowing customers to accumulate points over time and redeem them for rewards. When designing such a system, consider the following key aspects:

• Point earning structure: Determine which actions will earn points and how many. This could include purchases, referrals, social media interactions, or completing profile information. Ensure the point values align with the desired user behaviors you want to encourage.
• Redemption options: Offer a variety of ways for users to redeem their points. This might include discounts, free products, exclusive experiences, or even donations to charities. Providing diverse options caters to different user preferences and increases engagement. Klarna gamifies point earning through Missions that offer clear, achievable tasks with specific point rewards (10x3 and 10x10).
• Point expiration policy: Decide whether points will expire and, if so, after what period. While expiration dates can encourage more frequent engagement, they may also frustrate users if set too short. Strike a balance that maintains program value while motivating regular participation.^[1]