Customers would earn x points based on the subtotal of their purchase. These points are stored akin to store credit and can be used to throw additional FUN products into their carts during checkout. Can also be saved up for large COOL items.
On the front end the website should tease the rewards program to all customers but require a customer login to be browsed. Simply making this another form of a product page would be underwhelming and fail to capture customer data/engagement.
Additionally, I always wanted to see the ThinkGeek.com model of rewards. Where the reward items ship for free as long as you hit a new order threshold. So when you go to blow your 4,000 rewards points the item will ship free as long as you buy $40 worth of other product - otherwise you do pay shipping.
