Glossary
What is a redemption?
A redemption is the moment a customer uses what they have: taking the free coffee, using the voucher. It is when you actually hand over what you promised, which makes it the moment that matters most for your costs and for what you get paid.
Everything a loyalty programme does builds towards a redemption. It is also where the cost lands.
Redemption discharges an obligation
Until redemption, outstanding stamps and unused vouchers are something you owe. Redemption is where that obligation is settled and where the cost hits your margin.
It is bound to the venue
A redemption happens at the venue that issued the entitlement, in a staff session at that venue. It cannot be performed from somewhere else.
Related terms
- RewardWhat a customer unlocks on reaching a stamp or points threshold.
- VoucherAn entitlement a customer holds and can redeem at the business that issued it.
- Redemption approvalA customer confirming a spend-like redemption before it completes.
- Loyalty liabilityThe value of outstanding rewards and unused vouchers you still owe.
- Redemption rateThe share of issued rewards or vouchers that customers actually use.