Loyalty Register glossary
Reactivation
Bringing a lapsed or dormant member back to active earning or redeeming, usually through a targeted message, offer or program fix.
Reactivation means bringing a lapsed or dormant customer back to active behavior: buying, earning points or redeeming rewards. In a loyalty program it differs from acquiring a new customer because the program already knows the member, including what they used to buy, how often, how many points they hold and roughly when they stopped. A reactivation campaign is the outreach that does it; a win-back campaign is the same idea aimed at customers who have fully churned.
Updated · By Loyalty Register Editorial TeamRelated terms
When does a member count as inactive?
Set the line by the normal buying cycle, not one number for everyone. A weekly coffee buyer who has not visited in six weeks is lapsing; an annual traveler is not. Many programs also have a formal inactivity rule tied to dormancy and points expiry. Fetch, for example, expires points after 90 days without earning or redeeming, and sends notice after 60 days of inactivity, which works as a built-in reactivation reminder.
How do programs reactivate members?
- Reminders. A message showing the points balance, what it buys and when it expires. Often the cheapest step.
- Offers. Bonus points, a discount or a free item for returning within a set period.
- Status help. Extending a tier, or an easier path back to it.
- Program fixes. Changing what drove members away, such as an unreachable first reward or a broken app feature.
A member who left because rewards felt out of reach will not stay after a one-time bonus if the problem remains.
Who should you target?
Segment lapsed members by past value, by how long ago they stopped, and by clues to why, such as a complaint, a move or a program change. Valuable members who stopped recently are usually the best targets; the longer the gap, the lower the chance of return. Members who bought once and never returned may need onboarding rather than an offer. Stop contacting members who ignore several attempts, and respect opt-outs.
How do you price and measure reactivation?
Cost per returning member matters more than the headline value. A hypothetical example: a $10 offer goes to 10,000 lapsed members and 5% respond. If it is a discount applied only on purchase, it costs $5,000 for 500 returns, or $10 each. If it is credited to every account upfront and expensed when issued, it costs $100,000, or $200 per return.
Measure with a holdout group: some lapsed members return on their own, and only the difference is the campaign’s effect. The reactivation rate is reactivated members divided by members targeted. Then track how many are still active three, six and twelve months later, and the profit after the offer’s cost.