Glossary

The loyalty glossary

The vocabulary of enterprise loyalty, defined in plain language. Each entry gives the definition first, then how the concept plays out in real programs.

This glossary defines the terms that decide loyalty program design: the economics (points liability, breakage), the mechanics (earn and burn, rules engines), and the models (ecosystem loyalty, behavioral loyalty). Every definition is vendor-neutral, with a closing note on how GRAVTY handles the concept in practice.

B

Behavioral Loyalty: Behavioral loyalty is a program design that rewards what members do beyond spending: completing a profile, writing a review, keeping an activity streak, referring a friend, or engaging with an app.
Breakage: Breakage is the share of issued loyalty points that members never redeem.

E

Earn and Burn: Earn and burn is the core loop of a loyalty program: members earn a currency such as points or miles through purchases and other actions, then burn it on rewards, discounts, or experiences.
Ecosystem Loyalty: Ecosystem loyalty is a program model in which multiple brands or partners share one loyalty currency and one member base.

L

Loyalty Rules Engine: A loyalty rules engine is the software component that decides what happens when a member acts: how many points a purchase earns, which tier applies, which offer triggers, and how a redemption is priced.

P

Points Liability: Points liability is the balance-sheet obligation created when members earn loyalty points they have not yet redeemed.

Related

Keep reading

How GRAVTY compares Head-to-head comparisons against other enterprise loyalty platforms. GRAVTY technology Visual Rules, uptime architecture, and the data stack. GRAVTY for retail Cross-banner member graph, iScan receipt AI, per-segment promo deployment. Insights Editorial on loyalty strategy, architecture, and program economics.