What is Earn-Burn Ratio?

The relationship between loyalty points earned by customers and points redeemed (burned). A healthy burn rate above 30% indicates attractive rewards. If too few points are redeemed, the rewards aren't compelling enough. If too many burn, the programme may be financially unsustainable. Fundle's Points Economics module tracks this in real-time.

Understanding and implementing earn-burn ratio is critical for modern retail operations. Brands and mall operators that leverage earn-burn ratio effectively see measurable improvements in customer retention, revenue attribution, and operational efficiency.

Fundle.ai's platform includes built-in earn-burn ratio capabilities as part of its AI-powered retail intelligence stack — no additional tools or integrations required.