If you're planning to wind down your loyalty program, a little preparation goes a long way. This guide walks through what to think about so you can close the program smoothly and give your customers a good experience along the way.
There's no single right way to do this. The best approach depends on your business and your customers, and the tips below should help you decide what works for you.
In this article:
1. Plan your exit
Before you start, decide:
When your program will end
What will happen to your customers' points and rewards
How and when you'll tell your customers
Giving yourself enough lead time helps you avoid surprises and keeps 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:
Tell customers 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 want 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 form, such as a voucher code or store credit.
Refunding unused rewards
Refunding unused vouchers turns them back into points, so each customer's points balance shows everything they hold when the program ends.
Refund unused vouchers before the program ends. Either ask our Support team at support@loyaltylion.com to refund every unused voucher reward at once, or refund them yourself by deleting each voucher reward with Refund all unused vouchers ticked.
Once the rewards are refunded, run a customer export to get an up-to-date list of points balances.
Decide what to do with those points, for example emailing each customer a voucher code worth the same amount.
3. Let customers know what's changing
Telling customers your loyalty program is winding down is an important part of closing it. Clear, friendly communication sets expectations, reduces confusion, and keeps customer sentiment positive.
Plan your communications in advance, and give 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 start:
Give customers advance notice (we recommend at least four weeks)
Be clear about key dates, especially when points or rewards 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.
Example 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.
Example 2: Replacing with a new offering
Why this works:
The message encourages action, with a call to action, 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 as a reminder during the wind-down period.
Example 3: Email
Why this works:
Customers are clearly told what will happen to their existing value
The tone is friendly and reassuring
Next steps are explained simply
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: focus on what customers can do and any extra value you're offering. A pleasant surprise goes a long way.
4. Export your data
Export everything you need before you cancel or uninstall. Exports need an active subscription, and downloading an export needs multi-factor authentication turned on for your own sign-in.
You may want to export:
Customers
Points accounting
Referrals
Rewards
If you need data after your subscription has ended, contact our Support team.
5. Cancel and uninstall
Once your program has ended and you've exported your data:
On Shopify, uninstall LoyaltyLion from each store. When it is uninstalled from every store on your subscription, we cancel the subscription.
If you pay LoyaltyLion by card, uninstalling doesn't cancel your subscription. Go to Manage LoyaltyLion account > Billing and click Cancel subscription, or contact our Support team. Our Customer Success team will be in touch to confirm.
Need help?
If you have any questions about closing your program, refunds or exports, our Support team is happy to help at support@loyaltylion.com.