This paper investigates reward expiry for loyalty programs. It provides insights into the profitability of setting reward expiry for competing firms and identifies conditions under which such a policy would be beneficial. We develop and solve a stochastic model that reflects consumer behavior in...

This paper evaluates whether firms offering loyalty programs (LPs) should choose a restricted redemption policy by imposing a specific number of purchases before customers can redeem their points. Such restriction is commonly offered in form of ‘buy n times, get one free' loyalty cards. We...