STEP 1 Points expiration
Every loyalty program faces a serious challenge of establishing rules related to point redemption. Consistent and clear rules help to motivate participants to be more active and are the basis for monitoring the effectiveness of the chosen scenario.
What is points expiration process?
The points expiration process involves setting an expiration date for accumulated points or rewards within a loyalty program. This means that points or rewards have a specific expiration date, after which they cease to be available or loose their value.
What happens with the points?
When planning a loyalty program, we can specify an expiration date for the points, as well as how they can be used or redeemed. Synerise offers several options that can be implemented in your loyalty program. The figure below shows a list of actions that can reduce the balance of points in a customer’s account.
Depending on the loyalty program scenario, points can be reduced by:
- Exchange for rewards - In this case, customers receive a selected reward from the pool for a certain number of points.
- Exchange for instant discount - This option lets customers decide how many points they want to exchange into money while paying for purchased products.
- Expiry of points - In this case, to reduce the points accumulated by customers, you can impose expiration date for the points; we will describe this process in detail in STEP 2 of this lesson.
- Transfer of points - In this case, points can be transferred to other users. More about this topic in Lesson 3.
Next step
You already know what is points expiration, in the next article you will learn more about the configuration of the whole process.
