One of the key questions we're asked when designing loyalty programs is - what should the life of the points be (or how quickly should they expire)? Our analysis frequently shows that performing programs with a three year points life generally perform as well as programs in which points are evergreen or never expire.
Research into a retail loyalty program by Yuping Liu, Ph.D presented at June's INFORMS Marketing Science Conference in Michigan USA ( http://www.yupingliu.com/wordpress/2009/06/15/loyalty-programs-and-crm-insights-from-marketing-science-2009-conference/) may have found a different trend. In a piece of research that looked at a single convenience store moving from no points expiry to monthly expiry and found that participation in the program as well as sales increased.
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