Qualifying and Non-qualifying points
The Qualifying and Non-qualifying points, called Q and NQ points for short, are used to monitor the level of involvement of each individual within a loyalty program. For this reason, they are collected separately for each contact and program.
A contact is usually credited points based on the amount of money spent on products related to the loyalty program. Points can also be awarded automatically by actions within scenarios or manually by customer service.
Qualifying points
Q points are used to rank members of loyalty programs, allowing you to grant perks, rewards, and tiers to users who collect a certain number of them. Q points allow both upwards and downwards mobility: members may be promoted for amassing more points and demoted when their points expire, or when the rules change.
Non-qualifying points
NQ points are meant to be the internal currency of each loyalty program. Program members will be able to spend (or burn) their points, for instance, by selecting rewards from the catalog or participating in offers received by SMS or email. On the other hand, by using filters, you can potentially identify members with enough NQ points to collect a reward, as well as those who spend all their points or do not spend them at all.
Validity and Expiration of points
All points are assigned a validity period when they are credited. This period is defined in the loyalty program settings.
This mechanism automatically promotes member activity, since more active members will make a better use of their points, and inactivity will cost users their points.
Cascading
Cascading means that the validity period of all points a contact already has accumulated is reset each time they gain new points. It means that when cascading is enabled, the validity period is always counted from the last time the contact gained points.
Cascading is an option which can be enabled or disabled for each loyalty program separately.
Holding period
When a contact earns points, they will be initially put on hold for a period specified in the loyalty program settings.
Holding points prevents individuals from spending them until the hold is released. This way, as the party operating the loyalty program, you can have a better control over how the loyalty points are used and spent. You can avoid moving contacts up a tier and back again if for any reason the points are removed or canceled before the holding period ends (e.g., a product was returned and money reimbursed). Also, your contacts will not be able to spend NQ points they should not have.
Tiers
Are the different levels of a loyalty program. We distinguish two types of programs: simple and tiered programs (with level).
Rounding
Is an option in the settings of the program to round points up or down based on the transactional amount of a ticket (i.e 15,72€ = 16 points).
Adoption rate
% of individuals who are signing up to the Loyalty program vs total number of contacts in the database.
Breakage rate
Total of points which have not been used / total of points assigned to members of a program.
Redemption rate
Members that have used points / Total members holding points