Glossary

Dormancy

Dormancy is the state of a member who has stopped engaging with a program but has not formally left, showing no purchases, logins, or redemptions for an extended period. Dormant members still hold balances that sit as liability and still count in the base, masking how many members are truly active. Spotting dormancy early is the first step toward reactivation.

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.

Related

Keep reading