How to Bring Loyal Customers Back with Points Reinstatement Offers (Guide + Template)
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Retention isn’t a magic trick — it’s a strategy built from empathy, context, and data-driven decision making. Brands chase new customers because acquisition is “easy to measure,” but the most unfair advantage in ecommerce today is getting customers to come back — especially those who already raised their hand through repeat behavior, high engagement, or loyalty membership.
If your brand has a loyalty program that uses points, then you have a rich asset right in front of you: fall-off in loyalty engagement. And one of the most effective ways to reel back lapsed loyalty members is through a structured points reinstatement offer — where you gift them back unused or expired points with a compelling reason to redeem them. And better yet, we built a guide for this with a campaign plan and an email template to help you execute it cleanly.
Download the Loyalty Points Reinstatement Offer Guide (PDF)
Sticky Digital Loyalty Points Reinstatement Offer Guide
Includes a campaign plan and an email template to entice lapsed loyalty members to return.
Why Loyalty Programs Still Matter — Especially for Retention
Most brands launched loyalty programs because they understand that repeat customers buy more, spend more, and refer more. But the problem isn’t always getting people into your loyalty program — it’s keeping them engaged once they’re there. The truth is simple: people disengage when the perceived value of the program doesn’t match the effort of participation.
If you look at the data from high-performing ecommerce businesses, loyalty members make:
- Higher lifetime value
- Higher average order value
- Stronger brand advocacy
- Lower churn — when the program is active
But if points sit unused or expire, customers can feel like the program doesn’t pay off — and disengage. That’s where a thoughtful reinstatement offer comes in.
Before we dive deeper, if you’re still building your broader retention systems — flows, loyalty, lifecycle strategies, email, and SMS — we build that full system here: Sticky Digital Services.
The Problem with Unused or Expired Points
Unused or expired points represent a psychological barrier. You might think “points are just points,” but customers see them as lost opportunity. That translates into friction and, ultimately, churn.
Here’s what typically happens inside loyalty programs:
- Customers earn points early after signup
- Points accumulate but don’t get redeemed
- The points expire or get forgotten
- Customers disengage from the program — and possibly the brand
This is a leakage problem. Left unaddressed, it siphons revenue and customer goodwill. But it also presents an opportunity: if you can revive those points with a compelling invitation, you can reactivate purchase behavior without heavy discounts or acquisition spend.
That’s the strategic idea behind a loyalty points reinstatement offer — give a targeted group of lapsed loyalty members back some portion of their unused points (or expired points) and invite them to return with a segmented, high-relevance message.
Why Points Reinstatement Works (When Done Right)
A points reinstatement offer succeeds because it taps into three powerful behavioral levers:
- Loss aversion — People are motivated to avoid perceived loss of value.
- Reciprocity — A gift creates a sense of obligation that can drive return action.
- Relevance — It reconnects with customers on a personalized milestone.
But let’s be clear: not all reinstatement offers are created equal. You need structure, segmentation, and a plan — not just a generic “we added points back to your account!” email. That’s why we created a guide to make execution repeatable and measurable.
Before we go further into how to execute, note that this strategy works best when part of a holistic retention program — including lifecycle messaging across channels, segmented reactivation flows, and long-term measurement frameworks. For examples of other retention tactics that work together with loyalty engagement, check out our resource repository: Retention Templates & Assets.
Segmenting Loyalty Members for Reinstatement Campaigns
Segmentation is the difference between a blanket offer that burns margin and a targeted campaign that creates lift. Not every lapsed loyalty member should be treated the same. We’re going to break down how to think about groups so your communication feels personalized, relevant, and timely.
1. Recently Inactive Members (Points Earned but Not Redeemed)
These are members who earned points in the last 6–12 months but haven’t redeemed anything. They know the program, have skin in the game, and likely forgot or deprioritized redemption. This group responds well to gentle reminders and small reinstatement offers.
2. Formerly Active Members (Long-Inactive, Some Unused Points)
These users used to redeem, then stopped. They might respond better to a more personalized and higher-value offer — plus product recommendations based on prior behavior.
3. Expired Points Holders
This group had points that expired. They’re the highest leverage group because reinstating points directly addresses perceived loss. But be cautious: if the reason they disengaged was not simply “points expired,” you need to pair reinstatement with emotional context and segmentation.
4. VIP or High-Value Loyalty Members
These customers are valuable even when they lapse. Reinstatement for VIPs can be more generous and communicate exclusivity and appreciation.
Remember: segmentation is the backbone of targeted retention. Don’t send one message to everyone and hope it sticks. Treat segments like real people with varied experiences and motivations.
Designing the Points Reinstatement Offer
Once you’ve segmented your membership, the next step is deciding how much value to gift back — and how to do it without inflating future expectations.
There are generally three approaches:
- Partial reinstatement — Return a portion of expired or unused points.
- Full reinstatement — Return all unused or expired points, usually for high-value segments.
- Bonus points — Add extra points beyond what was unused to elevate the perceived offer.
The right choice depends on customer behavior and lifetime value. For example:
- Partial reinstatement works well for recently inactive members
- Full reinstatement can motivate formerly active members who disengaged
- Bonus points work well for VIPs — where the reinstatement feels like an exclusive “thank you”
Your loyal customers didn’t leave because they forgot your brand existed. They left because the *logic of value exchange* broke down. Reinstating points resets that logic — but it has to be communicated in a way that feels generous, strategic, and respectful of the customer’s time and experience.
How to Communicate Your Reinstatement Offer (Email Strategy)
Email is still one of the highest-ROI channels for loyalty communication. But getting the tone right matters — especially for lapsed members. You don’t want your email to read like a desperate plea; you want it to feel like a thoughtful invitation back.
That’s why the guide includes an email template designed for real execution. You can download it here:
Loyalty Points Reinstatement Offer Guide (PDF)
Below, we’ll walk through the structure of the email so you understand not just the template — but the strategy behind it.
The Anatomy of a Great Reinstatement Email
A successful reinstatement email tends to include these elements:
- Subject line that signals reward and relevance
- A warm opening that acknowledges past engagement
- Description of the reinstated value — what they’re getting back
- Clear call-to-action (redeem points / shop now)
- Personalization based on loyalty history
- Timelines or urgency cues to encourage action
For example, a good subject line might be:
- “Good news — your loyalty points are back!”
- “We’ve added points back to your account — here’s how to use them”
- “Your points are calling — come see what’s new”
Subject lines like these communicate value first, not pressure. They invite curiosity and reward discovery.
Inside the email, think of the first sentence as setting context: “We noticed you haven’t redeemed your points in a while, so we added some back to your account as a thank-you for being with us.” That frames the narrative around appreciation — not desperation.
Next, it’s helpful to humanize the language with a snippet about what those points might mean in terms of products or experiences. Again — this is about relevance, not deals.
When to Send Reinstatement Emails
Timing is one of the most underrated retention levers. Sending the same message at the same time to everyone dilutes effectiveness.
Instead, here’s a strategy to consider:
- Trigger on inactivity thresholds (e.g., 6 months, 9 months)
- Follow up if no action within a defined window (e.g., 7 days)
- Layer in anniversary timing (e.g., a year since last redemption)
Timing becomes even more powerful when you segment by behavior rather than just time. In a loyalty context, points status is itself a behavioral signal — and it should be treated as such.
Integrating Reinstatement Offers with Your Loyalty Ecosystem
A points reinstatement campaign shouldn’t exist in a silo. It should integrate with your broader loyalty and retention strategy. That means coordinating with:
- Your onboarding and welcome flows
- Points balance notifications
- Product recommendation blocks
- Anniversary emails and lifecycle triggers
- SMS notifications (if applicable)
When your messaging feels coordinated rather than isolated, the customer experience smooths out — and that increases lift.
Measuring the Success of Your Reinstatement Campaign
Measurement isn’t a “nice to have.” It’s how you know whether your investment drove incremental value. Here are key metrics to watch:
- Redemption rate — What percent of reinstated points were used?
- Reactivation rate — How many customers made a purchase after the note?
- Incremental revenue — Revenue above baseline from this segment
- Retention trends — Impact on long-term engagement
To interpret these numbers well, you need to compare against holdout segments and your historical benchmarks. That’s how you move from anecdote to evidence.
For retention teams that want analytics frameworks aligned to real business outcomes (not vanity metrics), check out:
GA4 Reports for Retention Marketers
Common Mistakes with Points Reinstatement Offers (and How to Avoid Them)
1. Giving Too Much Value Without Strategy
If you gift points without segmentation or intent, customers learn they can wait for generosity. Instead, align value with behavior and lifetime significance.
2. Using Generic Messaging
Customers are not units — they are people with preferences. Personalization improves performance and respects experience.
3. Ignoring Timing
Sending messages too early or too late kills relevance. Timing should match behavior signals, not calendar triggers alone.
4. Not Measuring Incremental Impact
If you can’t isolate the effect of your reinstatement offer from other campaigns, you can’t optimize it. Careful measurement is essential.
When Points Reinstatement Fits and When It Doesn’t
Points reinstatement works best when your loyalty program has:
- A clear points economy (too complex systems confuse customers)
- Meaningful value per point
- Segmentable member data
- Integrated lifecycle messaging
If your program doesn’t have these elements, focus first on strengthening your loyalty foundation before layering reinstatement offers.
Bringing It All Together
In the long game of retention, every touchpoint should be intentional and measurable. A loyalty points reinstatement offer is not just a promotional tactic — it’s a relationship reset. When done well, it honors the time customers have spent with you, reconnects them with the value they left behind, and creates a clear path toward renewed engagement.
Download the full guide and email template to operationalize this strategy immediately:
Sticky Digital Loyalty Points Reinstatement Offer Guide
Download the PDF (Includes Campaign Plan + Email Template)
Execute a targeted points reinstatement campaign that brings valuable loyalty members back.
Want Help Building Retention That Scales?
Sticky Digital builds retention systems with strategic segmentation, behavior-driven campaigns, and measurable outcomes — not spray-and-pray tactics. If you want ongoing support for loyalty, email, SMS, and lifecycle strategy that aligns with your business goals, let’s talk:
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