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Glossary
Glossary

Consumption Rate

The consumption rate measures the use of a value or benefit relative to a reference volume. For points, it can relate points consumed to points issued, but the periods must be compatible. The maturity of the cohorts strongly influences the interpretation of this indicator.

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Measure performance

A concrete example

A cohort receives 100 000 points and uses 65 000 over a given period: the consumption of this cohort is 65% in this hypothetical example.

A point to consider

Mixing points issued this year with those used from older stock makes the ratio misleading. Track point generations.

Track the evolution of the same generation of points

For points issued over a given period, track the quantities used, still available, canceled, and expired. Compare cohorts of the same age. Low usage may indicate a threshold that is too high, an unsuitable offer, or insufficient information. High usage alone is not proof of profitability: compare it to the cost of rewards and the estimated additional activity.

Questions to ask your team

  • Are expired points separated from redeemed points?
  • Is the first benefit accessible with the actual balances held?

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Glossary 2 min

Loyalty Points

Loyalty points are a unit of acquisition and use defined by the programme. Their value depends on the rules of allocation, conversion, consumption, and validity. A balance must clearly distinguish between available, pending, used, and expired points to avoid ambiguity.

Understand and apply
Glossary 2 min

ROI

ROI relates the net result of an investment to the costs incurred. For a programme, specify the selected result, the total cost, and the period. Using the additional margin rather than the total revenue of members helps avoid a misleading interpretation of profitability.

Understand and apply
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