Dormancy describes a member who has stopped engaging but has not formally left, with no purchases, logins, or redemptions for an extended period. The account remains on the books, and the member still holds a points balance, but they have gone quiet. Dormancy sits between an active member and a fully lost one, and it is often the last window to act.
A member who enrolled, earned points on a few purchases, then went silent for a year is dormant, not gone. Their balance still counts as liability, and they still inflate the total member number, which can make the base look healthier and larger than the genuinely active population.
For an operator, identifying dormancy early matters because a dormant member is far cheaper to reactivate than a departed one is to replace. Dormant accounts also distort program metrics, hiding the true active rate behind a large headline membership. Spotting the drift toward dormancy, through falling frequency and lengthening gaps, lets the program intervene while there is still a relationship to save, rather than discovering the loss only when the member is unrecoverable.