Resources · Glossary
Glossary
Plain definitions of the terms used in customer intelligence and loyalty.
A
- Active customer
- A customer who is buying regularly, at their usual rhythm.
- At-risk customer
- A customer who is still buying, but less often than before, with longer gaps between purchases. An early sign that they may become inactive.
- Audience
- The group of customers a campaign is aimed at, usually one or more segments.
- Average transaction value
- The average amount a customer spends per purchase over a period.
B
- Behavior signal
- A measurable change in how a customer buys, such as longer gaps between visits or smaller purchases, that suggests their relationship with a business is changing.
C
- Campaign
- A time-limited offer for a specific audience, defined by a trigger and a reward. For example, bonus points on a purchase made in the next three weeks.
- Cashback
- A reward that returns a share of what a customer spends, usually as credit for a future purchase.
- Churn
- When customers stop buying from a business. In businesses without subscriptions, churn is gradual and is usually seen as customers becoming inactive.
- Customer intelligence
- Understanding customers from their actual behavior, such as what, when and how often they buy, so that decisions are based on evidence rather than assumptions.
D
- Dormant customer
- A customer with no recent activity.
E
- Earning rule
- The rule that sets how customers earn points or cashback. For example, 1 point per dollar spent.
- Engagement
- How actively a customer interacts with a business: visiting, buying, earning and redeeming rewards, and responding to campaigns.
G
- Growing customer
- A customer who is visiting or spending more than before.
L
- Loyalty program
- A structured way of rewarding customers for coming back, such as earning points or cashback on purchases.
O
- Observed change
- The difference in customer activity before and after a campaign launch. It shows what happened, not on its own what caused it.
P
- Points
- A reward currency customers earn on purchases and redeem for rewards defined by the business.
- Purchase frequency
- How often a customer buys over a period, and whether that rhythm is changing.
Q
- QR code enrollment
- Joining a loyalty program by scanning a QR code, usually at the point of sale.
R
- Re-engagement campaign
- A campaign aimed at customers who are visiting less often, inviting them to come back. Also called a win-back campaign when aimed at dormant customers.
- Recency
- How long it has been since a customer’s last purchase.
- Redemption
- When a customer uses their points or cashback to receive a reward.
- Retention
- A business’s ability to keep customers buying over time.
- Reward rule
- The rule that sets what customers receive and when. For example, 100 points unlock a $5 reward.
S
- Segment
- A group of customers with similar behavior, such as VIP, Active, Growing, New, At Risk or Dormant.
T
- Trigger
- The customer action that activates a campaign reward. For example, a purchase during the campaign period.
V
- VIP customer
- One of a business’s highest-value customers by spend and visit frequency.
- Visit frequency
- How regularly a customer comes back, and how long the gaps between visits are.
Have a question that is not about a term? See the frequently asked questions.
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