Defining Point Types and Subtypes 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.
Nonqualifying Points. Do not count toward tier status.
It is recommended that you have separate point types in the program to represent both qualifying and nonqualifying points. However, only nonqualifying points can be used 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 must 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 must have two point types: one to track the number of points, the other to track the number of flight segments.
Other programs can use loyalty point types to link specific actions more tightly with specific rewards. If a loyalty program tracks some member action, then you must create a specific point type for that action. For example, if an airline gives rewards to both individual and corporate members, then you must create two point types, one to track miles for individual members, and one to track corresponding corporate points.
You can define point expiration at the point type level only if the point expiry basis set at the program level is defined at Point Type level. Options include:
Expire points of members based on account activity.
Expire points after a period of time.
Expire points on a fixed day.
For more information about point expiration, see About Loyalty Program Points, Tiers, and Rewards.
In addition to point types, you can also define point subtypes, which are used purely for administrative purposes. For example, you might use different point subtypes to keep track of the different reasons that the points are given out. Points can be given out as an incentive with purchases or as a bonus, and you can create point subtypes named Incentive and Bonus to track these two different uses of points.
The Point Sub Types you create apply to all the different Point Types. For example, if you create point subtypes named Incentive and Bonus, then they can be used to track whether all your different Point Types are given out as an incentive or as a bonus.
You define which point types and subtypes are given to members as a reward for purchases when you create the Admin - Accruals promotion, as described in Creating the Admin - Accruals Promotion.
When you define the Point Sub Types, select one as the default that is given out if no subtype is specified in the Admin - Accruals promotion.