What is the purpose of qualifying currency in a loyalty program?

Qualifying currency plays a pivotal role in loyalty programs by providing a structured approach to evaluate a member's tier level. It essentially consists of the points or credits that members accumulate through their interactions with the program, such as making purchases or engaging in activities that align with the program's objectives.

These accumulated points or credits, recognized as qualifying currency, directly affect the assessment of a member’s status within the loyalty program. This status, often framed in terms of tiers or levels, rewards members with various benefits and perks based on their engagement and loyalty. By using qualifying currency to evaluate tier levels, organizations can effectively motivate members to participate more actively, enhancing their overall experience and fostering brand loyalty.

In contrast, tracking member inactivity, determining total points earned, and calculating expiration dates serve different purposes in loyalty management and do not specifically assess the tier level of a member. These aspects are important for overall program management but are not the primary function of qualifying currency.