By Michael Greenberg | Director, Marketing
In every loyalty program, some of the accrued value (or accrual) goes unused and is eventually zeroed out. Understanding and planning for this unused accrual, also known as breakage, is crucial for program design.
Accrual breakage is the percentage of value accrued that expires before redemption and ends up as zero value. That is, how much perceived funding never is actually turned into a reward. It becomes pretty obvious when a....