Skip to main content

Winding Down Your Loyalty Program

Offboarding Guide

Written by Jason Leader

If you’re planning to wind down your loyalty program, a little preparation can go a long way. This guide walks through the key things to think about so you can offboard smoothly and give your customers a positive experience along the way.

There’s no single “right” way to do this - the best approach depends on your business and your customers - but the tips below should help you decide what works best for you.


1. Plan your exit

We don’t have step-by-step instructions for winding down a program, as this is up to you. That said, planning ahead makes everything easier.

Before you get started, think about:

  • When your program will end

  • What will happen to customer points and rewards

  • How and when you’ll let customers know about the change

Giving yourself enough lead time will help avoid surprises and keep things running smoothly.


2. Decide what to do with points and rewards

Option 1: Use it or lose it

This option encourages customers to redeem their points before the program ends.

How it works:

  • Let customers know the program is ending

  • Set a clear deadline for redeeming points and rewards

  • After that date, points and rewards can’t be used

This is a good option if you’re looking for a clean, time-bound exit.

Option 2: Carry points over

If you’d like customers to still get value from their points, you can carry them over in another format.

Refunding unused rewards

We can refund any unused vouchers back into points so you can see exactly how many points each customer has when the program ends.

How to do this:

  1. Before your program ends, email our Support team at support@loyaltylion.com to refund unused rewards.

  2. Once the rewards are refunded, run a customer export to get an up-to-date list of point balances.

  3. From there, you can decide what to do with those points — for example, emailing customers a voucher code worth the same amount.


3. Let customers know what’s changing

Letting customers know your loyalty program is winding down is an important part of the offboarding process. Clear, friendly communication helps set expectations, reduces confusion, and keeps customer sentiment positive.

We recommend planning your communications in advance and giving customers at least four weeks’ notice so they have time to redeem their points or understand what will happen next.

A few tips before you get started:

  • Give customers advance notice (we recommend at least four weeks)

  • Be clear about key dates, especially when points or rewards will need to be used by

  • Keep the message positive and focused on improving their experience

Where to communicate

  • On-site banners to highlight key dates and reminders

  • Email campaigns explaining what’s happening and what customers need to do

If you’re planning something new to replace your loyalty program, a simple “Coming soon” message can help set expectations.

On-site communication examples

1 - Program closing / no replacement yet:

Why this works:

  • The message clearly states that the program is ending

  • A specific end date is included

  • The tone is calm and reassuring

  • The focus is on what’s next, not just what’s ending

On-site banners are especially helpful for reinforcing key dates and reaching customers who may not open emails.

2 - Replacing with a new offering:

Why this works:

  • The message encourages action (and includes a CTA) without sounding negative

  • The deadline is clear and easy to spot

  • Customers are reassured that the brand is evolving

This type of banner works well as an early heads-up or a reminder during the wind-down period.

3 - Email example:

Why this works:

  • Customers are clearly told what will happen to their existing value

  • The tone is friendly and reassuring

  • Next steps are explained in a simple, easy-to-follow way

  • Support contact details are easy to find

This approach is ideal if you’re refunding rewards, converting points into store credit, or carrying value over after the program ends.

Top tip: Try to focus on what customers can do and any extra value you’re offering. A pleasant surprise goes a long way.


4. Export your data

Once your program has ended, you won’t have access to LoyaltyLion anymore. We recommend exporting any data you might need before your subscription ends.

You may want to export:

  • Customers

  • Points accounting

  • Referrals

  • Rewards

You can find more details in our guide: Exporting Your Data.


5. Uninstall LoyaltyLion

After your program has ended and you’ve exported your data, you can uninstall the LoyaltyLion app from your Shopify store.

Follow the steps in our guide: Uninstalling LoyaltyLion.


Need help?

If you have any questions about offboarding, refunds, or exports, our Support team is always happy to help.

Just reach out to support@loyaltylion.com.

Did this answer your question?