STEP 2 Points expiration process

There are two basic approaches to reducing the number of loyalty points earned by users, namely Rolling cancellation and Regular batch cancellation.

Comparison of point expiry methods

In the table below, we describe the comparison of the two methods.

	Rolling cancellation	Regular batch cancellation
Description	Setting an expiry date for each event related to the accumulation of loyalty points.	Regular cancellation of points for the entire base (mostly once a year).
Assumptions	Each event for which points have been received has a configurable validity period. The points expire at the same time every day. Promotions activated for points cannot be deactivated.	The rules for cancelling points must be established, so it needs to be determined which points, in which time frame, for which events should be included in the process. Automation by deleting points runs on a schedule. The balance of user points is closed for the duration of the process.
Main benefits	Less irritating for program member. More flexibility in configuration.	Can be more surprising as more points are cancelled at once. Reduced volume of communication. More business opportunities on cancellation preparation.

Configuration of the point expiry process

After acknowledging the significance of establishing rules for point cancellations in loyalty programs, the next step is to delve into the process setup. The specific approach to expiring points will dictate the necessary steps and considerations for implementation.

Rolling cancellation
This type of configuration is based on data analysis, particularly on aggregates and expressions. The Analytics module calculates points earned through the loyalty program, as well as points that need to be deleted due to redemption or expiration date. Once configured, a simple automation process triggers the daily points deletion. The automation is set to run regularly at a specific time, preferably just after midnight.
Regular batch cancellation
Configuration of this type relies on the Analytics and Automation modules. Advanced mathematical rules are used to set the criteria for point calculation and deduction, which are then executed through automation.

Both expiration processes, which typically occur once or more per year, can be fully automated and monitored in Synerise through customized dashboards.

Good practices in the points expiration process

As you prepare to create and set up your points expiration process, review these tips to help you reduce points pools:

Implement limits - To ensure the effective management and tracking of loyalty points, we recommend to implement limits on the number of points that can be earned within a specific time period or limiting the number of points that can be used in a single transaction. By placing reasonable limits on the point system, it becomes more manageable and easier to track, while ensuring a fair and balanced program for both customers and the business.
Launch campaigns and promotions - By launching campaigns and promotions, businesses can effectively reduce the excess of points in circulation. These activities may include offering shopping discounts, vouchers, various promotions, or providing additional benefits for point redemptions. Implementing such initiatives allows for a timely reduction in accumulated points while incentivizing customers to engage with the loyalty program and enjoy the associated rewards.
Offer rewards - Consider creating products or attractive offers that will only be available for points. These could be exclusive goods or special services. One effective way to expand your rewards list is to start partnerships with other companies, allowing your customers to choose their products and services. This will encourage users to use their points.
Cooperate with charities - Your customers may also use their points on charity organizations. This is a win-win-win situation for all involved: the company, its customers, and the charity benefiting from the program.

Next step

You already know the whole process of expirations works, it is time to test your knowledge in practice. Go to the last section of this lesson.