How to use the end of the year not only to close the books, but to renegotiate the relationship with the customer through best practices

How to use the end of the year not only to close the books, but to renegotiate the relationship with the customer through best practices

The period from November to January is crucial for every loyalty program. Traditionally, it is the time when companies focus on points liquidation, expense balancing, and reaching sales targets for the fiscal year. However, forward-thinking brands know that the end of the year is not just an administrative deadline; it is a strategic opportunity to reinvent emotional engagement with the customer and lay the foundations for future growth.

Transforming the usual “Use your points or lose them!” into a message of value and appreciation requires the adoption of specific best practices. Here are some essential strategies to implement to maximize loyalty ROI at the end of the year.

1. Communication is a personalized annual summary 

The standard practice is to send a cold “Points Expiration Notice.” The best practice is to replace it with a personalized “Annual Loyalty Statement” that serves as a summary of the year. An annual summary does not limit itself to showing the current points balance, but highlights:

  • Value Recognition: How many euros the customer saved thanks to the rewards or discounts received.
  • Impact and Preferences: Which products or services were redeemed the most, offering insight into their habits.
  • Current and Future Status: A clear reminder of the current membership level and what is missing (if anything) to maintain or reach the next level.

This narrative transforms communication from an obligation (using points) into a gesture of appreciation (recognizing the time and spending invested). The customer will feel seen and valued.

2. Extending the Redemption window for the most desired rewards 

The pressure of a short redemption period often pushes customers to redeem low-value rewards just to avoid losing points. This does not create loyalty; it creates forced transactions. For the most coveted or experiential rewards, best practice suggests extending the conversion window; alternatively, offering the possibility to “lock in” the reward with expiring points, allowing the customer to physically collect it in the first quarter of the new year. This approach reduces customer anxiety, increases the perceived value of the reward, and ensures that the customer starts the new year with a positive interaction and a reason to return.

3. Incentivizing “Dormant” users with limited-time offers and gamification 

The end-of-year period is the last chance to reactivate “dormant” users (those who haven’t interacted for 6-12 months). Standard communication will not work. Best practices include:

  • Targeted Bonus Points: Offering a small points bonus (e.g., 50 points) simply for logging into the app or updating preferences.
  • Low Reward Thresholds: Creating a set of entry-level rewards (rewards that require fewer points) valid only for the month of December. This makes accumulated points meaningful even for those who have few and provides an immediate reason to interact.
  • Countdown: Utilizing New Year’s urgency with clear visual countdowns for the expiration of points and special end-of-year rewards.

4. The “Hidden” gift and the element of surprise 

The “Surprise” effect is amplified during the holidays. Do not limit yourself to distributing the rewards strictly provided by the regulations.

  • Surprise Gift: Reward a small percentage of your top spenders with an unexpected gift—not points, but a real product or an enhanced service. This generates powerful word-of-mouth and makes the loyalty experience a socially shareable event.
  • “Grace Period”: For customers who narrowly missed reaching the next level, consider offering them a grace period or early access to the benefits of the next level. This creates a sense of gratitude and motivates them to maintain their status in the new year.

5. Link loyalty to sustainability or social goals 

In an era where consumers seek authenticity, a loyalty company can use the end of the year to link accumulated points to a positive impact. Give customers the option to donate part of their expiring points to a partner charity, a reforestation initiative, or a social project. This strategy achieves a dual result:

  • It strengthens the ethical and social image of the brand.
  • It allows the customer to feel part of a greater good thanks to the loyalty program.

The end-of-year period is the time to demonstrate to customers that their loyalty is an investment, not just a transaction. By adopting these best practices, companies can close the year with solid results and, above all, open the new year with a customer base that is not only loyal but genuinely enthusiastic about being part of the community. The real goal is not closing the ledger in December, but ensuring that the customer opens their calendar in January still thinking about your company.

Need the right partner to implement your loyalty strategy? LiberActa has been operating in the sector for years with its innovative solutions, satisfying its customers in an effective and personalized way. For info or a demo, visit the website www.liberacta.com or write to us at info@liberacta.com