Points Redemption Walkthrough
To turn points into a reward, your customers will need to log into the rewards panel on your site. Once they're logged in, they'll need to open the rewards panel.
Next, click on Ways to redeem.

The Ways to redeem menu option in the rewards panel
If they do have enough points for one of the Fixed amount rewards, there will be a Redeem button:

Fixed amount rewards showing the Redeem button
To redeem points on Incremental rewards, your customer will need to use the points slider to select the amount of points they would like to spend, then click Redeem:

Using the points slider to select points for Incremental rewards
Upon clicking redeem, your customer will be taken to a page that shows the coupon code with a button to Apply code which will automatically apply that coupon code to the checkout.

Coupon code with Apply code button
Based on your settings in Notifications, your customers also may get an email with the coupon code for their records. The code will also be stored in their rewards panel under the Your Rewards section at the bottom.
Note:
When customers receive their redemption code, they can also copy it manually and apply it directly at checkout in the discount code field if they prefer. This gives them flexibility in how they use their rewards.