Point Value: How Much Is a Loyalty Point Worth?

By Alva Chew · Updated 2026-11-04

Definition A loyalty point is worth whatever the reward costs in points, divided into the reward's price. If 100 points buy US$5 off, one point is worth US$0.05. Starbucks Stars range from about US$0.03 to US$0.06 each depending on the reward, and the number matters because it sets how much of each sale you give back.

What is point value?

Point value is the amount a customer gets when they spend one point. You find it by dividing the reward’s price by the points it costs. A US$5 reward at 100 points gives US$0.05 per point.

It is one half of the maths behind a points-based loyalty program. The other half is the earn rate, which says how many points a customer gets per dollar. Multiply the two and you have the share of each sale you give back.

How much is a loyalty point worth in practice?

There is no standard worth. Every programme sets its own, so 1 point at one shop and 1 point at another are different amounts. Starbucks, the largest US café programme, publishes its tiers in its terms.

Stars	Reward (US stores)	Value per Star, at most
25	US$1 off an added shot, syrup or sauce	US$0.040
60	US$2 off a qualifying item	US$0.033
100	Up to US$6 of brewed coffee, tea, bakery or snack	US$0.060
200	Up to US$10 of a handcrafted drink or hot breakfast	US$0.050
300	Up to US$16 of a salad, sandwich or packaged coffee	US$0.053
400	Up to US$20 of select merchandise or packaged coffee	US$0.050

Source: Starbucks Rewards Terms, effective 10 March 2026, checked 4 November 2026. The last column is our division of the stated cap by the Stars required.

Members at the base Green level earn 1 Star per US$1 spent, from the same terms. At that rate the tiers above return at most about 3% to 6% of spend. Gold members earn 1.2 Stars and Reserve members 1.7, so their return is higher.

The value of a Star therefore depends on what you pick. The same balance buys more in one tier than another. This is a cost to the customer in attention, because they have to work out which tier suits them.

How do you calculate the value of a point?

Pick the reward. Choose one item customers want, such as a US$5 drink credit.
Pick its cost in points. Make it a round number such as 100.
Divide. US$5 divided by 100 points is US$0.05 per point.
Check the return. Multiply by your earn rate. At 1 point per US$1, you return 5%.

Earn rate	Reward cost	Point value	Return on spend
1 point per US$1	100 points for US$5	US$0.05	5%
1 point per US$1	50 points for US$5	US$0.10	10%
5 points per US$1	500 points for US$5	US$0.01	5%

The first and third rows give the customer the same deal. Pick the version whose numbers read easily on a receipt.

What does a point cost you?

The point’s value to the customer is not your cost. A US$5 credit spent on a drink that costs you US$1.50 to make costs you US$1.50 in ingredients. Points that are never spent cost nothing, which is called breakage.

Accountants look at it differently. Under US accounting rules, points count as a separate promise, and part of each sale is set aside for them. In the BDO example for ASC 606, a US$100,000 sale earns 10,000 points worth US$1 each. The company expects 95% to be redeemed, so the points are valued at US$9,500. Of the sale, US$91,324 is booked as revenue and US$8,676 is deferred until members redeem.

Source: BDO, ASC 606’s impact on loyalty programs, 6 December 2018, example read 4 November 2026.

This is why the expected redemption rate matters. It decides how large the points liability is on your books.

Why should customers see the dollar value?

A balance in points means little by itself. Points that customers do not understand tend to sit unspent, as the page on why customers do not redeem points explains. Showing “340 points, worth US$17” turns the balance into something a customer can spend.

Keep the value constant too. Changing what a point is worth after customers have saved is the quickest way to lose trust. Announce any change well ahead and leave balances alone.

Mistakes to avoid

Different values for different rewards. The Starbucks table shows how a spread of tiers makes the value hard to pin down. One reward price is easier to learn.
Large point numbers for show. 1,000 points per US$1 spent sounds generous but returns the same as 1 point per US$1 when the reward is priced to match.
Unstated value. If staff cannot say what a point is worth in a sentence, customers cannot either.

How Gimify handles point value

Gimify is points only, so a customer’s balance is one number, earned in proportion to the amount spent. The same balance works at every outlet. The free plan covers one outlet with unlimited members.

Questions owners ask

How much is a loyalty point worth?

It is the reward's value divided by its cost in points. A US$5 reward at 100 points makes each point worth US$0.05. Each programme sets its own number, so a point has no fixed worth across programmes.

What is a good point value for a small shop?

Choose it so the customer gets back about 5% to 10% of spend. At 1 point per US$1, a value of US$0.05 per point returns 5%.

Is a point worth the same as the discount it gives?

Not for you. The customer sees the price of the reward. Your cost is what the item costs you to make, and the part of points that are never redeemed lowers it further.

Should I tell customers what a point is worth?

Yes. Show the dollar value next to the balance. A customer who sees US$17 to spend understands the balance faster than one who sees 340 points.

Does point value change if I change the earn rate?

No. Point value comes from the reward price. The earn rate sets how fast points arrive. Together they set the share of spend returned.