03/08/2026
Is a 30% point burn rate healthy?
The answer depends on your programme.
A burn rate that signals strong engagement in one loyalty programme could indicate underperformance in another. Industry, programme design, customer behaviour and redemption strategy all shape what “healthy” looks like.
That is why burn rate should never be assessed in isolation.
The right approach is to:
• Benchmark against comparable programmes
• Measure both overall and active-user burn rates
• Understand what is driving redemption behaviour
• Balance member engagement with financial sustainability
There is no universal “good” burn rate.
Benchmark first. Diagnose second. Optimise third.