Industry insiders nod heads when the subject of breakage comes up. Defined as the value of points and miles in loyalty programs that are forfeited or expire unredeemed, the impact of breakage has been the subject of debate over the past year.
Marketers have a shared understanding that breakage is better for companies sponsoring loyalty programs than it is for the program members. We also know that the fundamentals of the loyalty marketing business case includes a healthy boost from the....