How Loyalty Points Expire and What You Can Do About It
Loyalty points are a great way for businesses to show their appreciation to loyal customers. With each purchase, customers can earn points which can then be redeemed for rewards such as discounts, free products, or exclusive perks. However, one common issue with loyalty points is that they have an expiration date. This can be frustrating for customers who have worked hard to earn their points, only to have them expire before they can be used. In this article, we’ll take a closer look at why loyalty points expire and what you can do to prevent them from going to waste.
Why Do Loyalty Points Expire?
Many businesses have a policy where their loyalty points expire after a certain amount of time, usually between 1-2 years. While this may seem like an inconvenience for customers, there are a few reasons why companies choose to have an expiration date for their points.
1. Encourage Repeat Business
One of the main reasons for expiring loyalty points is to encourage customers to continue making purchases. If points never expired, customers could potentially earn enough rewards to never have to make another purchase again. By having an expiration date, businesses are able to ensure that customers are continually returning to make more purchases in order to use their points before they expire.
2. Control Customer Spend
Another reason for loyalty point expiration is to control customer spend. If points never expired, customers could potentially hoard them until they have enough to redeem for a high-value item or service. This could result in a loss for the business. By having an expiration date, businesses are able to control how much customers are able to redeem at one time, ensuring that they are not losing too much profit.
3. Keep Track of Point Liability
For businesses, loyalty points are considered a liability on their books until they are redeemed by the customer. If points never expired, it would be difficult for businesses to accurately track how many points are still outstanding and how much they owe in rewards. By having an expiration date, businesses are able to keep track of their point liability and make any necessary adjustments to their loyalty program.
What Can You Do About Expiring Points?
No one likes to see their hard-earned points go to waste. Luckily, there are a few things you can do to make sure that your loyalty points don’t expire before you have a chance to use them.
1. Check the Expiration Date
The first and most obvious thing you can do is to check the expiration date of your points. Make a note of when they are set to expire so that you have plenty of time to use them before it’s too late.
2. Shop at the Business Regularly
As mentioned earlier, one of the main reasons for loyalty point expiration is to encourage repeat business. By making sure to shop at the business regularly, you can ensure that you have points to redeem and that you are using them before they expire.
3. Be Strategic with Redemptions
If you have a large number of points that are set to expire, it may be beneficial to be strategic with how you redeem them. Instead of redeeming for a small discount, save them up for a higher-value reward that you can use at a later time.
4. Contact Customer Service
If you find yourself in a situation where your points have expired and you were unable to use them, it never hurts to reach out to customer service. In some cases, they may be willing to reinstate your points as a one-time courtesy.
It’s important to remember that loyalty points are a privilege and not a right. While it may be frustrating to see them expire, it’s important to understand the reasons behind it and to take proactive steps to ensure that you are able to use them within the given timeframe. By understanding why loyalty points expire and what you can do about it, you can make the most out of your rewards and continue to enjoy the benefits of being a loyal customer.
