What is loyalty currency?

Loyalty currency is the in-program currency that members earn for taking specific actions – like making a purchase, referring a friend, or completing an in-app activity – and later redeem for rewards. A loyalty currency is proprietary to the brand or program that issues it and typically only has value within that program's ecosystem, unlike real-world currency.

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What are some examples of loyalty currency?

Common forms of loyalty currency include points, miles, stars, or branded tokens (think airline miles or coffee shop stars). However, some brands make their own more unique name for their loyalty currency beyond just coins, points, or units. 

Here are real-world brand examples of loyalty currency: 

• Starbucks Stars
• Foot Locker’s FLX Cash 
• Blume’s Blume Bucks
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How is loyalty currency earned and redeemed?

Members earn loyalty currency by:

1. Joining the brand’s loyalty program 
2. Completing qualifying actions defined by the program
3. Redeeming their balance for rewards like discounts, gifts, or exclusive perks

Loyalty program rewards can differ greatly based on the brand’s unique products, services, and industry.
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Does loyalty currency have real-world value?

Loyalty currency itself isn't cash or real-world currency, and it generally can't be transferred or redeemed outside of the issuing loyalty program. It's designed to feel valuable to members, is exclusive to the given brand, and it lets brands offer real rewards within their own ecosystem.