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Defining Point Types for Loyalty Programs

When you set up a loyalty program, you must define the point types available for the program, whether there are multiple types or just one.

This task is a step in Process of Setting Up Loyalty Programs.

Each point type can have both:

• Qualifying Points. Count toward a member's tier status.
• Non-qualifying Points. Do not count toward tier status.

Both qualifying and non-qualifying points can be used for redemptions.

Many loyalty programs have only one point type. These are the points that a member earns for accruals (both qualifying and nonqualifying), and then uses for redemptions.

If a loyalty program allows members to qualify for a tier through some action, such as the number of flight segments completed or the number of hotel stays, then that action should be represented by another point type. For example, if an airline allows members to qualify for the Silver tier either by earning a given number of points or completing a given number of flight segments, then its loyalty program should have two point types: one to track the number of points, the other to track the number of flight segments.

Other programs may use loyalty point types to link specific actions more tightly with specific rewards. For example, a loyalty program targeted at partners, in addition to having standard points, could also create points such as:

• Training Points. Attending conferences earns a member training points, which can then be redeemed for free training courses. Only Training Points, not Regular Points, can be used to purchase training courses.
• Marketing Points. Paying for advertisements that help promote the brand owner's products may earn marketing points, which can be used to earn a spot on the advertisements the brand owner pays for.

If a loyalty program tracks some member action, you should create a specific point type for that action. For example, if an airline gives rewards based on the number of frequent flyer points that customers earn and also based on the number of flights that customers take, you should create two point types, one to track the number of frequent flyer points and one to track the number of flights.

To define point types

1. Navigate to the Loyalty Program Administration screen.
2. In the Programs list, select the program that uses the point types you want to define, and click its Program Id hyperlink.
3. Click the Point Types view tab.
4. Add a new record to the Point Types list for each point type, and complete the necessary fields, described in the following table.

   Field	Comments
   Name	Enter a name for the point type.
   Active	Select this check box to make this point type available to the program.
   Field to Use	Select the field in the Members screen that will be used to display the number of points a member has of this point type. Options are Point 1, Point 2, Point 3, and Point 4. There can be other options if you configure the product as described in Creating Point Types for Loyalty Programs.
   Qualifying Weight	Enter a weight that will be used to calculate which promotion will apply if multiple promotions are available. For more information, see About Promotion Calculation Rules for Loyalty Programs.
   Non-Qualifying Weight	Enter a weight that will be used to calculate which promotion will apply if multiple promotions are available. For more information, see About Promotion Calculation Rules for Loyalty Programs.