Glossary

Active Member: Definition and How to Calculate the Active Rate

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Definition An active loyalty member is someone who earned or redeemed points within a window you choose, commonly the last 90 days. The active rate is active members divided by total members, so 300 active out of 1,200 is 25%. Pick one window, keep it fixed and count the same way each time.

What is an active member?

An active member is a loyalty member who has done something in the program within a time window you set. In a points program, the clearest action is earning or redeeming points. A member who joined last spring and has not bought since is a member, but not an active one.

The word “active” has no fixed industry meaning. One owner may count anyone who earned points in the last 30 days and another may count anyone who bought in the last year. What matters is that you write your definition down and use it every time.

How do you define an active member?

Three choices make up the definition.

ChoiceExample settingWhy it matters
ActionEarned or redeemed pointsRedeeming counts, so a customer who spends a reward is not marked inactive
WindowLast 90 daysShould be longer than your regulars’ normal gap between visits
Count dateThe first of each monthUsing the same date makes figures comparable

A common starting point is “earned or redeemed points in the last 90 days”. To choose a window, think about how often a regular comes back. If your usual customer visits weekly, 30 or 60 days is stricter and more telling. If people visit a few times a year, 90 days will flag most of them as inactive when they are not.

Changing the window changes the answer, so do not compare a 30-day rate from one month with a 90-day rate from the next.

How do you calculate the active rate by hand?

The active rate is the share of your members who count as active.

Active rate = active members ÷ total members × 100

You need two numbers from your own member records. The first is the total number of members as of your count date. The second is how many of them earned or redeemed points in the window that ends on that date.

Worked example, using a café that sells coffee at an average of US$8 per order:

StepFigure
Total members on 1 November1,200
Members who earned or redeemed in the last 90 days300
Active rate300 ÷ 1,200 = 25%
Inactive members900

If the next count shows 360 active members out of 1,300 total, the rate is about 27.7%. The active count grew by 60 and the rate rose, but the list also grew by 100 new members, so look at both numbers.

To estimate what the active group is worth, multiply: 300 members who each placed one US$8 order in the window is US$2,400 in that window, and more if they ordered repeatedly. This is a rough figure from your own sales records. It does not prove the program caused the spending.

What does a low active rate tell you?

A low rate often means many members signed up once and never returned, which is common when the sign-up is easy. It can also mean the reward is too far away or customers do not know their balance. Check the reward threshold first, then look at how staff mention points at the counter.

Members who fall out of the window become lapsed customers. Their number is the inactive group, and it is the list a win-back effort would start from.

How does the active rate differ from retention and repeat purchase?

The active rate counts members using the program in a window. Customer retention rate counts how many customers you kept over a period. Repeat purchase rate counts customers who bought more than once. The three overlap but answer different questions, and the guide to measuring loyalty program success shows how to read them together.

How Gimify fits

Gimify runs a points-based loyalty program where staff add or redeem points on any phone, so every earn and redeem is a recorded action you can count. The free plan covers one outlet with unlimited members, and the points balance is shared across outlets on the paid plan.

Questions owners ask

What is an active member in a loyalty program?

A member who has earned or redeemed points inside a window you set, for example the last 90 days. Members who joined but did nothing in that window are inactive for that period.

How do you calculate the active rate?

Divide the number of active members by the total number of members, then multiply by 100. With 300 active members out of 1,200, the active rate is 25%.

What window should I use for active members?

Match it to how often your regulars normally visit. Many shops use 90 days. A café with daily customers may choose 30 days, and a shop people visit a few times a year may choose 180 or 365 days.

Does a redemption count as activity?

Yes, in the definition on this page. A member who spends points has visited and bought something. Counting both earning and redeeming avoids marking a happy customer as inactive.

Is a high active rate always good?

It means a larger share of your member list is using the program. It does not show profit. Read it next to repeat purchase rate and the spend of active members.

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