Loyalty Programs Should Reward, Not Expire: Dan Gingiss, CSP Critiques Fandango’s Policy Change

In a recent LinkedIn post, Dan Gingiss, CSP discusses how companies can inadvertently undermine customer loyalty through poorly designed reward programs, using Fandango’s updated policy as a prime example. Gingiss, a recognized expert in customer experience, argues that the expiration of rewards transforms a gesture of appreciation into a source of customer frustration.

“Nothing says ‘loyalty’ like… making rewards expire. 🙃”

The core of Gingiss’s critique centers on the perceived intent behind such policy changes. He suggests that when rewards expire, loyalty programs can shift from genuinely rewarding customers to becoming a strategy for managing liabilities. This approach, he contends, misses the fundamental purpose of a loyalty program: to foster a positive and lasting relationship with the customer.

The Customer Experience Misstep of Expiring Rewards

Dan Gingiss, CSP highlights two key customer experience (CX) misses in Fandango’s updated program. Firstly, he asserts that rewards should not feel like a race against time. “Rewards shouldn’t feel like a ticking clock,” Gingiss writes, emphasizing that customers who have earned a benefit should not have to constantly monitor its expiration date.

Secondly, Gingiss points out the tone of the communication surrounding the policy change. He observes that the email announcing the expiration felt overly formal and legalistic, detracting from the fun and escapism associated with going to the movies. According to Gingiss, the messaging should align with the brand’s identity and the customer’s experience.

“The email reads like it was written by Legal, not a brand that sells FUN.”

Prioritizing Customer Perception Over Liability Management

Gingiss argues that companies must be mindful of how their loyalty programs are perceived by their customers. If the program’s structure appears to prioritize reducing redemption rates over genuinely rewarding customer loyalty, customers are likely to notice and react negatively. He poses a direct question to his audience:

“Do you think rewards should ever expire?”

This question invites a broader discussion on best practices in loyalty program design. Gingiss’s analysis underscores the importance of clear, human-centered communication and a customer-first approach in all aspects of customer engagement, particularly within loyalty initiatives. He believes that true loyalty is cultivated through positive experiences and perceived value, not through policies that create artificial urgency or frustration.

In Gingiss’s view, the goal of any loyalty program should be to make customers feel valued and appreciated, reinforcing their decision to engage with the brand. Implementing policies that suggest otherwise, like reward expirations, risks alienating the very customers the program is intended to retain.