Loyalty Programs · Winding down · Component
The honouring
What happens to points already earned — where the saving from not honouring them is small and the damage is not.
The deliverable
What it is
Terms usually permit forfeiting unredeemed value. Doing so saves the liability and costs the relationship with everyone who held some.
Honouring what was earned is the more expensive option in the period and the cheaper one over any longer horizon.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The treatment
What happens to outstanding balances.
3 attributes: Treatment · Cost · Conversion rate
LearnThe exceptions
Members whose position needs individual handling.
3 attributes: Situation · How many · Handling
LearnThe cost comparison
What honouring costs against what it saves.
3 attributes: Saving from forfeiting · Value of affected members · Ratio
Learn
The saving from forfeiting is knowable. The cost is not, and it is systematically underestimated.