Measure 'breakage' by high-value segments

All loyalty programs have members who don't redeem points. This "breakage" reveals issues with redeeming points, members forgetting they've enrolled, unappealing or less relevant rewards, and unachievable reward thresholds.

The best loyalty programs achieve their full potential by restoring members to participate in them. They also ensure to:

• Make point redemption easy.
• Enhance loyalty programs with unique features, challenges, bonuses.
• Remind customers of their point balances.
• Give customers options, such as donating their points.
• Introduce points-plus-cash options.