Loyalty Register glossary
Dormancy
The state of a member account with no qualifying activity for a set period. Programs use it to trigger expiry, outreach and reporting.
Dormancy is the state of a member account that has had no qualifying activity for a set period. The program decides what counts as activity and how long the period is, then uses that definition to trigger points expiry, re-engagement campaigns and reporting on how many members are still active.
Updated · By Loyalty Register Editorial TeamRelated terms
How do programs define dormancy?
Two choices make up the definition: which actions count, and for how long. Many programs count only earning or redeeming points. Sephora Beauty Insider, for example, expires unredeemed points after 12 months or more without point activity, meaning a purchase or a redemption. Other programs count a wider set of actions, such as logging in, updating a profile or opening the app.
The period should match the natural buying cycle. A coffee chain may treat a member who has not visited in two months as at risk. McDonald’s has described one of its loyalty groups as members who have not visited in a few months. A furniture or travel brand might see a year without purchase as normal.
Why does the definition matter?
Because it sorts members into groups that get very different treatment. Set the window too short and you send win-back offers to customers who were about to return anyway, or expire points from people who simply buy rarely. Set it too long and you miss the moment when outreach could still work.
A narrow definition can also hide engaged members. Someone who reads every email and checks their balance, but has not bought in a year, is dormant under a spend-only rule. Whether that is right depends on what the program wants to measure: purchase behavior or interest.
How does dormancy connect to expiry and liability?
Dormancy is often the trigger for expiry. When a dormant account reaches the end of the window, its points lapse, the points liability shrinks and the breakage estimate is confirmed. That makes the definition a financial assumption as well as a marketing one. If you change it, finance needs to know, because it changes how many points are expected to be redeemed.
What should you do with dormant members?
Look at them in segments rather than as one group. Separate members by how valuable they were before going quiet, how long they have been dormant and how many points they hold. Send a reminder before points expire, with one easy action that resets the clock. Test reactivation offers against a holdout group, because many dormant members return on their own. Track dormancy rate over time alongside churn: a rising dormancy rate is often the first sign that the program’s rewards feel out of reach.