> ## Documentation Index
> Fetch the complete documentation index at: https://docs.omneo.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Incentives Overview

Incentives are about acknowledging customer behaviour in ways that both the customer and the staff who serve them can see. Omneo moves away from the term "loyalty program", incentives are an integral part of the brand itself, not a separate program bolted on.

## Financial vs acknowledgement incentives

Omneo organises incentives into two categories:

### Financial incentives

Dollar-value or redeemable amounts that have direct monetary impact:

* **Rewards**: dollar-value discounts with an expiry date
* **Points**: an abstract currency redeemable for dollar value (Reward Points)
* **Credits**: payment objects (store credit, gift cards): see [Commerce > Credits](/concepts/commerce/credits)

### Acknowledgement incentives

Non-monetary recognition that creates engagement and status:

* **Benefits**: vouchers, perks, event RSVPs, service entitlements
* **Tiers**: sequential thresholds that unlock elevated experiences
* **Achievements**: cumulative progress milestones with levels and counts
* **Statuses**: categorical labels (VIP, Staff, Influencer) that modify entitlements

## Why incentive programs work

* Existing customers spend 67% more than new customers
* It costs 5-25x more to acquire a new customer than to sell to an existing one
* The average company loses 50% of its customers every five years

Incentive programs reduce the need for endless marketing campaigns and blanket discounting by creating genuine value for your best customers.

## Incentive redemption hierarchy

When multiple incentives apply to a single transaction, they are applied in this order:

```
Benefits → Rewards → Credits → Payment
```

1. **Benefits** activate promotional rules in POS or eCommerce
2. **Rewards** are applied as a dollar discount across all eligible items
3. **Credits** are settled as a payment type against the remaining balance
4. **Payment** covers any remaining amount

## Configuring incentives

All incentive types are configured in CX Manager under Configuration. Each incentive type has its own Definition template that controls how instances are issued to profiles.

<CardGroup cols={2}>
  <Card title="Rewards" href="/concepts/incentives/rewards" icon="dollar-sign">
    Dollar-value discounts with expiry dates.
  </Card>

  <Card title="Points" href="/concepts/incentives/points" icon="coins">
    Abstract currency with configurable earn and redeem rates.
  </Card>

  <Card title="Benefits" href="/concepts/incentives/benefits" icon="gift">
    Non-monetary perks, vouchers, and entitlements.
  </Card>

  <Card title="Tiers" href="/concepts/incentives/tiers" icon="layer-group">
    Annualised tier programs with attain and maintain mechanics.
  </Card>
</CardGroup>