35 Brand Loyalty Program Terms

35 Brand Loyalty Program Terms

35 Brand Loyalty Program Terms



Loyalty programs, they’re like the cozy, neighborhood cafe that knows your order before you do—the ones that serve up warm rewards that feel just as comforting as that first sip of robust coffee. But they’re more than a personal relationship with brands; they’re complex ecosystems with terms that could amaze even the savviest consumers. Here’s a list of 35 loyalty program terms that, once demystified, unlock a wealth of savings and perks.


In an age where every dollar counts, it pays (sometimes quite literally) to be fluent in the language of loyalty. Whether you’re an everyday shopper or a seasonal splurger, understanding these terms can make the difference between a wallet that whispers its discontent and one that shouts “Huzzah!” at every swipe.




1. Points

Quite possibly the world’s best-known loyalty currency, points are like gold nuggets in the loyalty world. You accumulate these bad boys when you spend cash with participating brands.

2. Tiered Programs

Elevation is the name of the game in tiered programs. The more you spend, the higher you climb, unlocking better rewards and sometimes an air of exclusivity that often comes with a bunch of envy-worthy perks.

3. Rewards

This term is the pot of gold at the end of the loyalty rainbow. You’ve shopped, you’ve dined, you’ve spent, and now it’s time to cash in on freebies, discounts, or other incentives.

4. Loyalty Currency

These are the points, credits, stars, or whatever the brand’s chosen mechanism for rewarding consumer spend. It’s the tender for your brand loyalty piggy bank.

5. Incentives

Similar to rewards, these are the warm-up acts, usually aiming to nudge you toward more purchasing. Think welcome bonuses, first-purchase discounts, or double points on certain days.

6. Earn and Burn

These are the twin stars of the loyalty galaxy. You earn points by spending money, and then you get to burn them—redeem, that is—for items, discounts, or getaway experiences.

7. Redemption Rate

The exchange rate between collected points and actual rewards. A good program makes this easy on your wallet.

8. Redemption Threshold

The minimum number of points you need to have before you can get your paws on the rewards. Sometimes a bit of a tease, but often a reason to keep shopping.

9. Welcome Bonus

The sweet something brands throw at you for just signing up for their program. Think of it as the loyalty program’s warm handshake.

10. Anniversary Bonus

On the anniversary of your entry into the program, brands can set off your shopping senses with bonus points or other treats.

11. Member-Only Offers

These are the not-so-secret-secret handshakes of the loyalty world. Special deals and discounts that are exclusive to the loyalty program members.

12. Co-Branded Credit Cards

The commitment of loyalty, literally. When your credit card sports the logos of both a bank and a brand, it could mean more points per dollar spent at that brand, or maybe a faster track to those tiered program zeniths.

13. Earning Potential

The possible ceiling of points you can accumulate under the most ideal (or spendy!) circumstances.

14. Non-Monetary Rewards

Some programs don’t reward you with material things, opting instead for experiences, services, or charitable donations.

15. Expiration Policy

The flip side of rewards, expiration policies determine the shelf life of your points. They can be a year, a few years, or more crucially, non-existent.

16. Inactivity Policy

Want to know what makes a loyalty program mad? A total lack of loyalty. Inactivity policies dictate the terms under which your account might be purged of points if you don’t keep spending those hard-earned dollars.

17. Perks

These are the little extras that come with a loyalty program. Think free shipping, extended return policies, or complimentary services for VIP tier members.

18. Multi-Tier Earnings

A way to reward the highest-spending customers with points that are earned at an accelerated rate compared to the plebs at the bottom.

19. Non-Qualifying Activities

Not every interaction with a brand translates into points. Non-qualifying activities are those shopping or engagement behaviors that won’t earn you a cent.

20. Referrals

Casting your net wider with referrals might earn you additional points or rewards when a friend signs up for the program using your name as their sponsor.

21. Gamification

Some loyalty programs make a game out of earning points, turning shopping into a quest or competition, which can be pretty fun, if a tad psychologically tricky.

22. Exclusive Access

Sometimes, the ultimate currency is the velvet rope. Loyalty programs often grant access to members-only events or early access to sales as rewards.

23. Personalization

Modern loyalty programs use your shopping patterns to tailor rewards and offers that are unique to you. It’s like having your own brand sidekick.

24. Omni-Channel

When loyalty knows no bounds, it’s omni-channel. This means you can earn and redeem points both online and in-store.

25. Mobile Integration

The modern shopper’s best friend, mobile integration allows for seamless point tracking, offer discovery, and redemption on the go.

26. VOC Programs

Voice of the Customer Programs are where brands listen to you, and then reward you for complaining or complimenting.

27. End-to-End Loyalty Solutions

Companies that specialize in turning every loose dollar you have into a tightly woven tapestry of customer retention for the brands you love.

28. Blackout Dates

Stumbling blocks in reward travel planning, blackout dates are days when you can’t use points to book trips or hotels. They’re like the ‘Closed’ sign on your dream vacation.

29. Program Terms and Conditions

The fine print where all the juicy and terrifying details of your loyalty love affair reside. Brush up on these, folks!

30. Member Communications

Customarily, the spam that reminds you just how much you love each and every brand in your loyalty stable.

31. Hurdle Rate

This is the spending bar you have to clear to reach the next tier of rewards. Some people see a hurdle; others see an official reason to buy that new handbag.

32. Lifetime Value

This is how much a brand expects to nab from you in the whole span of your relationship. A little creepy maybe, but it does mean you’re valuable.

33. Data Capture and Analytics

Loyalty programs are big on big data, capturing all your spending habits to offer you rewards that’ll make you feel like you’re known down to the last charge.

34. Program Management

The hardcore back-end management that keeps your favorite loyalty program running and, hopefully, increasingly rewarding.

35. Community

An often-overlooked aspect, loyalty programs can foster camaraderie among like-minded spenders, creating a community with its own shared interests, exclusivity, and who knows, possibly even jargons.


Now that you’re equipped with this glossary, you’re ready to navigate the loyalty landscape like a pro. Let these terms be your north star as you chart your course through the consumer cosmos. Happy shopping, and may your points be plentiful!

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