Loyalty Register glossary
Birthday reward
A gift, discount or points bonus that a loyalty program gives members around their birthday, usually in the birthday month.
A birthday reward is a gift, discount or points bonus that a loyalty program gives a member around their birthday. Most programs make it available for the whole birthday month rather than a single day, and many give it to every member regardless of how much they spend. Sephora Beauty Insider, for example, lets every member redeem one Birthday Gift a year during their birthday month, with no purchase needed to collect it in a store.
Updated · By Loyalty Register Editorial TeamRelated terms
How do programs design a birthday reward?
The main choices are what to give, who gets it and how long it lasts. The reward can be a free product, a discount, a fixed amount off, or bonus points. Some programs give the same reward to everyone; others give more to higher tiers. The window can be a week, the birthday month or a set number of days from the date the reward is issued. Programs also decide whether a purchase is required to use it, and whether it can be combined with other offers.
Why does it matter beyond the gift?
A birthday reward gives members a reason to share their date of birth, and that field is useful in itself: it is a piece of data the customer chose to give. It also creates a reason to contact members once a year who may otherwise have gone quiet, which makes it a gentle reactivation tool. For many members it is the most visible benefit of a free program.
What does it cost?
The cost depends on how many members redeem and what the reward costs the business, not its face value. A hypothetical program with 100,000 members with birthdays on file, where 30% redeem a reward that costs $3 to provide, spends about $90,000 a year. If redemption usually comes with a purchase, part of that cost is offset by the margin on the visit. Points rewards also add to the points liability until they are used.
What should you measure?
Compare redemption rates by tier and by how active members were before their birthday. Look at whether members who redeem make a purchase in the same visit and come back in the following months, compared with similar members who did not redeem. Collect only the birth date data you need (month and day are enough for the reward), say clearly how it is used, and check age rules if the reward involves restricted products such as alcohol.