What is a point economy?

A point economy provides the foundation for points-based loyalty programs. You must implement the point economy before you can build the tiered loyalty program.

The following image shows the structure of the Koalla Clothing points economy. We'll refer to the Koalla Clothing point economy throughout this article.

The components of a point economy are:

• point source accounts

• point escrow accounts

• spendable point accounts

• tier qualifying point accounts

A point economy also has two policies defined for it:

• points redemption policy

• points expiration policy

Let's take a closer look at the components and policies in a point economy.