How to Re-engage Lapsed Loyalty Program Members | 5 Proven Strategies
Feb 4, 2025
Every loyalty program has them: members who signed up enthusiastically, earned a few stamps, then quietly disappeared. They haven't unsubscribed. They haven't complained. They've simply stopped engaging.
These lapsed members represent both a problem and an opportunity. The problem is obvious—they're not generating the repeat business your program was designed to create. The opportunity is less obvious but potentially more valuable: these are people who already showed interest in your business. They've already joined. Re-engaging them is significantly easier and cheaper than acquiring entirely new customers.
The key is reaching them before they forget about you entirely—and giving them compelling reasons to come back.
This article covers five proven strategies for re-engaging lapsed loyalty program members, turning dormant accounts back into active, returning customers.
Why Members Lapse (And Why It Matters)
Before diving into re-engagement tactics, it's worth understanding why members become inactive in the first place.
Common Reasons for Disengagement
Rewards feel too far away: If earning takes forever and rewards seem unattainable, motivation fades.
Rewards aren't compelling: Even achievable rewards don't motivate if they're not actually wanted.
Communication dropped off: Out of sight, out of mind. Members forget programs that don't remind them.
A bad experience: One negative interaction can undo months of loyalty building.
Life circumstances changed: Sometimes it's nothing you did—people move, priorities shift, habits change.
Competition won: A competitor offered something better or more convenient.
Why Re-engagement Beats Acquisition
Re-engaging a lapsed member is far more efficient than acquiring a new customer:
They already know you: No brand awareness building required
They've already signed up: The hardest conversion step is done
You have their contact information: Direct communication is possible
They may have progress: Existing stamps or points create incentive to continue
History provides insight: Their past behaviour guides your approach
Research consistently shows that winning back a lapsed customer costs a fraction of acquiring a new one. The investment in re-engagement pays off.
Strategy 1: Birthday Rewards
Birthday rewards are one of the most effective re-engagement tools available—and one of the simplest to implement.
Why Birthdays Work for Re-engagement
Personal connection: Being remembered on your birthday feels special. It transforms a transactional relationship into something more personal.
Natural timing: Birthdays are occasions for treating yourself. A reward provides the perfect excuse to do so at your business.
Annual touchpoint: Even completely lapsed members get reached once a year, creating regular opportunities for reconnection.
Low resistance: It's hard to ignore a birthday gift, even if you've been disengaged with the program.
Implementation for Small Businesses
Birthday rewards don't need to be expensive or elaborate:
Service businesses (salons, barbershops, spas):
Free upgrade during birthday month
Complimentary add-on service
Percentage discount on birthday visit
Cafés and restaurants:
Free drink or dessert
Discount on birthday meal
Complimentary appetiser or side
Retail:
Birthday discount (15-20% is meaningful)
Free product with purchase
Double stamps during birthday month
Making It Automatic
The beauty of birthday rewards is that they can run entirely on autopilot:
Capture birth dates during program signup
Configure your birthday reward and message
The system delivers rewards automatically
No manual tracking. No remembering individual dates. Every member gets celebrated without ongoing effort.
Perkstar's Birthday Club feature handles this automatically. Set it up once, and birthday rewards deliver to every member, every year—including those who've gone quiet. It's a re-engagement touchpoint that requires zero ongoing attention.
Strategy 2: Acknowledge Membership Anniversaries
The anniversary of someone joining your loyalty program is a natural moment for reconnection—especially with members who've drifted away.
Why Anniversaries Matter
Shared milestone: The anniversary acknowledges your relationship's history. "It's been a year since you joined us" feels meaningful.
Reflection opportunity: Anniversaries naturally prompt looking back—and looking forward.
Progress summary: You can remind members what they've earned and how close they are to rewards.
Lower pressure: Unlike sales-focused messages, anniversary acknowledgments feel celebratory rather than pushy.
Effective Anniversary Messages
For active members: "Happy 1-year anniversary with us! In the past year, you've earned 12 stamps and redeemed 1 free treatment. You're currently just 3 stamps away from your next reward. Thanks for being part of our community!"
For lapsed members: "It's been a year since you joined our loyalty program! We've missed seeing you. You still have 6 stamps waiting—just 4 more for your free coffee. Why not stop by this week and pick up where you left off?"
The Re-engagement Angle
For lapsed members specifically, anniversaries offer a non-awkward way to reach out. Rather than "we noticed you haven't visited," you're celebrating a milestone. The re-engagement happens naturally through the positive framing.
Consider offering a special anniversary reward:
Bonus stamps to accelerate toward next reward
Small discount to encourage a return visit
Exclusive offer available only during anniversary week
Strategy 3: Progress and Expiry Notifications
One of the most powerful psychological principles in loyalty is the Endowment Effect: people value things they already have more than identical things they don't have.
Applied to loyalty programs: stamps already earned feel like possessions. The threat of losing them motivates action.
Progress Reminders
Many lapsed members don't realise how close they are to rewards. A simple reminder can reignite engagement:
"You're just 2 stamps away from a free manicure! Don't let your progress go to waste—book your next appointment today."
This works because:
It highlights existing progress (the Endowment Effect)
It shows the reward is attainable (motivation)
It creates urgency without artificial pressure
Expiry Warnings (If Applicable)
If your program includes expiration on stamps or points, warnings before expiry are essential:
The wrong approach: Silently expire points, leaving members feeling cheated. This damages trust and creates resentment.
The right approach: Multiple warnings before expiry, with clear guidance on how to prevent loss.
"Your 7 stamps will expire at the end of this month if not used. You're just 3 stamps away from a free coffee—visit twice this month and you'll earn your reward before expiry!"
Timing and Frequency
For progress reminders:
Send when members are close to rewards (1-3 stamps away)
Send after extended periods of inactivity (4-6 weeks)
Include in periodic "status update" messages
For expiry warnings:
30 days before expiry: Friendly heads-up
14 days before: Clear warning with suggestions
7 days before: Urgent reminder
After expiry: Graceful message (consider offering partial restoration as goodwill)
Perkstar's push notifications make these communications easy. Reach lapsed members directly on their phones with progress updates, expiry warnings, and incentives to return.
Strategy 4: Incentive Offers for Returning
Sometimes the most direct approach works best: give lapsed members a compelling reason to come back.
Re-engagement Offer Types
Welcome-back discounts: "We've missed you! Here's 20% off your next visit—valid this month only."
Bonus stamps: "Come back this week and earn double stamps on your purchase."
Free item or service: "It's been a while! Your next coffee is on us—just show this message."
Exclusive access: "We're launching a new menu next week. As a loyalty member, you get early access—come try it before anyone else."
Messaging That Works
The tone matters as much as the offer:
Avoid guilt: Bad: "You haven't visited in 3 months. We're wondering if something went wrong." Better: "We've missed seeing you! Here's a little incentive to stop by soon."
Be genuine: Bad: "As a valued customer, we'd like to offer you..." Better: "Hey! It's been a while. We'd love to see you again—here's 15% off your next visit."
Create urgency without pressure: Bad: "This offer expires in 24 hours—act now!" Better: "Valid through the end of the month—hope to see you soon!"
Targeting Effectively
Not all lapsed members need the same approach:
Recently lapsed (4-8 weeks): Light touch. "We noticed it's been a bit—everything okay?" Simple reminder might be enough.
Moderately lapsed (2-4 months): Moderate incentive. "Here's 15% off to welcome you back."
Significantly lapsed (6+ months): Stronger incentive. "We'd love to win you back. Here's a free [item] on us."
Digital loyalty platforms let you segment and target based on activity patterns. Perkstar's lapsed customer campaigns can be configured to trigger automatically based on inactivity periods—set up once, and re-engagement outreach happens without manual monitoring.
Strategy 5: Ask for Feedback
When other tactics haven't worked, sometimes the best approach is simply asking: what went wrong?
Why Feedback Requests Work
Transparency builds trust: Admitting you want to improve is refreshing compared to typical marketing messages.
People want to be heard: Even frustrated customers appreciate being asked for their opinion.
Valuable insights: The feedback you receive helps improve your program for everyone—preventing future lapsing.
Unexpected returns: Some members return simply because they were asked. The outreach itself demonstrates you care.
Crafting Effective Feedback Requests
Be direct and genuine: "We noticed you haven't visited in a while, and we'd love to know why. Was it something we did? Something we could do better? Your honest feedback helps us improve."
Make it easy:
Single question rather than lengthy survey
Multiple choice options for quick response
Optional open text for detailed feedback
Offer something (but don't make it transactional): "As a thank you for your feedback, here's 10% off your next visit—but honestly, your thoughts are more valuable to us than the purchase."
Common Feedback and How to Respond
"Your rewards take too long to earn" → Consider lowering thresholds or adding interim rewards
"I forgot about the program" → Increase communication frequency; add more touchpoints
"I had a bad experience" → Apologise specifically, offer to make it right, demonstrate improvement
"I moved / my circumstances changed" → Thank them, wish them well, leave door open
"Nothing specific—just drifted" → Welcome-back offer may be all that's needed
Learning and Improving
Every piece of feedback is an opportunity to prevent future lapsing. If multiple members mention the same issues:
Rewards too distant? Adjust your program structure
Communication too sparse? Increase touchpoints
Bad experiences mentioned? Address service issues
Program too confusing? Simplify
The goal isn't just re-engaging one member—it's improving your program so fewer members lapse in the first place.
Building a Re-engagement System
Individual tactics work better as part of a systematic approach:
Prevention Layer
Regular communication: Don't let members forget about you. Progress updates, birthday rewards, and occasional promotions maintain connection.
Achievable rewards: If members are lapsing because rewards seem unattainable, fix the structure.
Quality experience: The best re-engagement strategy is never needing one. Excellent service keeps members active.
Early Intervention
Monitor activity: Know when members start disengaging (visit frequency declining, stamps slowing).
Gentle outreach: Reach members before they're fully lapsed. "We haven't seen you in a few weeks—everything okay?"
Active Re-engagement
Birthday rewards: Annual touchpoint regardless of activity status.
Anniversary acknowledgments: Another natural reconnection moment.
Progress reminders: Highlight what they've already earned.
Incentive offers: Give compelling reasons to return.
Feedback requests: When other approaches haven't worked.
Automation
The most effective re-engagement systems run automatically:
Birthday rewards trigger without manual intervention
Lapsed customer campaigns send based on inactivity thresholds
Progress notifications deliver when members approach milestones
Perkstar supports all of these automations. Configure your re-engagement system once, and it works continuously—reaching the right members at the right moments without requiring constant attention.
Getting Started
Ready to win back your lapsed loyalty program members?
Audit your current state: How many members are inactive? How long have they been lapsed?
Set up birthday rewards: If you're not already celebrating birthdays, start here. Annual touchpoint, automatic delivery, high impact.
Configure lapsed customer campaigns: Define what "lapsed" means for your business (6 weeks? 3 months?) and set up automatic outreach.
Plan your messaging: Write genuine, warm messages that feel human rather than automated.
Monitor and adjust: Track which approaches work and refine over time.
Perkstar's 14-day free trial gives you access to all re-engagement features: Birthday Club, push notifications, lapsed customer campaigns, and analytics to track what's working.
Start your free trial at Perkstar →
Your lapsed members aren't lost—they're just waiting for a reason to come back.
