Bonus points are among the most powerful loyalty incentives available to brands — but only when deployed with intentional strategy. A well‑designed bonus points strategy can turn occasional buyers into repeat customers, increase purchase frequency, and boost overall customer lifetime value. However, poorly timed or overly generous extra points promotions can erode margins without delivering sustainable growth.
In this deep‑dive guide, we’ll explore:
- When to use bonus points in a loyalty program
- Why they work (from behavioral and economic perspectives)
- How to design bonus points promotions that drive durable results
- Real brand examples and data‑backed recommendations
What Are Bonus Points in Loyalty Programs?
Definition and Core Mechanics
A bonus points loyalty program gives customers the opportunity to earn extra points beyond standard earn rates—often tied to specific actions, events, or behaviors. These bonus points can later be redeemed for rewards, discounts, or exclusive experiences.
Unlike regular loyalty points (e.g., 1 point per $1 spent), bonus points are conditional and strategic, designed to influence specific behaviors such as first purchase, refer‑a‑friend signup, seasonal boosts, or engagement activities.
Why Bonus Points Work — Behavioral Science Backing
According to Harvard Business Review, loyalty programs succeed when they tap into behavioral motivation, not just transactional value. Research shows that incentives timed at key customer decision points can significantly increase engagement and repeat purchases.
Bonus points take advantage of behavioral phenomena such as:
- Goal gradient effect — customers accelerate purchase behavior as they get closer to a reward
- Reciprocity — bonus points feel like a gift, increasing psychological obligation to reciprocate
- Loss aversion — expiring bonus points can drive urgency
When to Use Bonus Points in Loyalty Programs (Timing & Triggers)
The timing of bonus points promotions is critical. Here are established use cases where bonus points deliver the highest impact:
1. New Customer Welcome Offers
Giving bonus points to new members immediately upon joining increases enrollment rates — and can drive first purchase faster.
👉 Example: “Earn 500 bonus points when you join today + make your first purchase.”
2. First Purchase / Second Purchase Incentives
For many brands, the largest drop‑off occurs between first and second purchase. Offering extra points for that second purchase (e.g., “double points on your second order”) significantly increases progression into loyal buying cycles.
3. Seasonal and Holiday Events
Limited‑time extra points promotions around holidays and seasonal peaks create urgency. McKinsey notes that seasonal loyalty promotions often outperform static year‑round offers because they combine intent + urgency.
4. Engagement Boosts (Non‑Transactional Actions)
Bonus points don’t have to be tied to purchase alone. Many brands reward points for:
- Writing product reviews
- Completing surveys
- Sharing on social media
- Refer‑a‑friend actions
These additional earn behaviors deepen engagement and expand visibility.
Designing a Bonus Points Strategy That Works
Align Bonus Points with Clear Business Goals
Define what behaviors matter most, such as:
- Increasing repeat purchases
- Shortening time between purchases
- Driving higher average order value (AOV)
- Increasing referrals
Each goal should map to a specific bonus points mechanic.
Create Tiered Bonus Points Structures
Tiered bonus points strategies add psychological motivation by giving higher rewards as customers reach higher tiers or spend levels:
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Tiered bonus points help brands retain and move customers up through value segments.
Time‑Bound vs Evergreen Bonus Points
Time‑bound bonus points (e.g., “This week only!”) drive urgency and quick engagement.
Evergreen bonus points (always available) can help build consistent habituation without short‑term spikes.
Balance the two to avoid loyalty fatigue while maintaining momentum.
Real Bonus Points Loyalty Program Examples (with Insights)
Example 1 — Sephora Beauty Insider Bonus Points Days
Sephora runs “Bonus Points Days” where members earn extra points per dollar spent for a limited time. This drives significant lift in repeat purchase behavior during these promotions.
Why it works:
- Predictable, time‑bound urgency
- Aligns with seasonal shopping habits
- Structured to reward higher spending
Result: Increased basket size and loyalty program engagement during promotional windows.
Example 2 — Starbucks Bonus Stars Challenges
Starbucks frequently uses bonus stars challenges where customers earn extra points for completing defined behaviors (e.g., “buy 3 beverages this week and earn 50 bonus stars”).
Harvard Business Review highlights that gamification + bonus rewards is a powerful engagement enhancer.
Example 3 — Ulta Ultamate Rewards “Bonus Point Events”
Ulta’s Ultamate Rewards loyalty program frequently runs “Bonus Point Events” where members earn extra points per dollar spent during specific promotional windows (e.g., “Earn 3x points on beauty purchases this weekend”).
Why it works:
- Clear promotional windows: Time‑bound bonus point offers create urgency and drive customers to make purchases sooner rather than later.
- Tiered incentive amplification: Higher reward density (e.g., 3x or 5x points) nudges members to spend more during the event to maximize their benefits.
- Behavior‑triggered upsell: Customers often add complementary products to their carts when motivated by bonus point thresholds (e.g., earn 5x points if you spend $75+).
Result:
Increased repeat visits and average order value (AOV) during bonus point events, stronger seasonal engagement, and heightened member loyalty through event anticipation and participation.
Measuring Success — Key Metrics for Bonus Points Programs
Redemption Rate vs Issuance Rate
Tracking how many bonus points are actually redeemed compared to how many are issued provides insight into the real perceived value of the bonus.
A very high issuance but low redemption may suggest misaligned incentives.
Repeat Purchase Lift
Measure repeat purchase rate before and after bonus points campaigns. A successful bonus points strategy should meaningfully increase the number of customers who purchase again within a defined window (e.g., 30–90 days).
Incremental Revenue Impact
Use controlled holdout testing to isolate the incremental revenue driven by bonus points promotions. According to Forrester, controlled experiments are the gold standard for measuring true loyalty program impact.*
Common Pitfalls and How to Avoid Them
Pitfall — Awarding Too Many Points Too Often
While generous bonus points can boost engagement, overuse can erode margins and train customers to only purchase when bonuses are offered.
Fix: Use strategic timing and limits — make bonus points special, not expected.
Pitfall — Unclear Expiration Policies
Bonus points that expire too soon or without notice can frustrate customers and reduce trust.
Fix: Clearly communicate expiration policies and remind members as expiration approaches.
Pitfall — Lack of Alignment with Core Brand Value
Bonus points that feel irrelevant (e.g., rewarding actions that have no revenue impact) dilute program effectiveness.
Fix: Map bonus triggers directly to desired business behaviors.
Practical Playbook — Step‑by‑Step Implementation
Step 1 — Define Objectives
Determine what you want bonus points to achieve:
- Transition one‑time buyers into repeat customers
- Increase average order size
- Boost referrals or social engagement
Clear objectives lead to measurable outcomes.
Step 2 — Select Bonus Point Triggers
Choose triggers that align with objectives:
- First purchase
- Purchase milestone
- Engagement behaviors (review, share, follow)
- Seasonal campaigns
Step 3 — Predictive Personalization
Use customer data to target bonus points to high‑intent segments — e.g., customers on the brink of repeat purchase.
Brands leveraging personalization see up to 15% higher loyalty engagement than non‑personalized programs (*Source: *Accenture Loyalty Report).
Step 4 — Run Controlled Tests
Implement holdout groups to compare behavior with and without bonus points to determine true ROI.
FAQ — Bonus Points in Loyalty Programs
What are bonus points in loyalty programs?
Bonus points are extra points awarded beyond standard earning mechanics, often tied to specific triggers or behaviors to encourage desired actions and deepen engagement.
How often should brands run bonus points promotions?
There is no one‑size solution, but high‑growth brands often run monthly or quarterly extra points events, with seasonal peaks during holidays or product launches.
Do bonus points increase customer loyalty?
Yes—when deployed strategically as part of a well‑balanced loyalty program, bonus points can meaningfully increase repeat purchase rate and customer lifetime value.
Conclusion — The Power of Bonus Points Done Right
Bonus points can be a transformative element in your loyalty program when planned with purpose. They are not just additional rewards — they are behavior catalysts that influence when and how customers engage with your brand.
Across strategic timing, personalized delivery, and measurable outcomes, bonus points help brands move beyond transactional relationships to deeper loyalty and repeat revenue.
Brands who master bonus points as part of their loyalty program strategy will not only drive more frequent purchases but will also foster stronger, longer‑term customer relationships.