Dutchie
Click "Create discount"
Click the "Name: *" field
Create any reward starting with "SC-" to redeem a reward, i.e. "SC-Loyalty" or "SC-5OFF".
Use the same Discount name on Code field
Choose an End Date for this reward. If you want to keep this as a permanent reward, set the end date as far as the year 2099
Select "Manual" as the Application method
Select "Amount off" as Discount method
Select "Distributed among every item" or another option in the "Apply discount method to:"
Enter a certain amount of $ Off for the "Amount off:" field, i.e. $5 OFF.
Click "Options"
Enter "1" in the "Loyalty points to redeem:" field.
Click "Details"
Click "Save"