Breakage refers to the loss of value or revenue that occurs when a customer does not fully utilize a product or service they have purchased. This is commonly seen in industries like telecommunications or subscription services, where customers may pay for a plan but not use all the features or benefits included. In the context of loyalty programs, breakage can occur when customers earn points or rewards but fail to redeem them before they expire. Companies often analyze breakage rates to understand customer behavior and improve their offerings, ensuring that customers receive better value and engagement from their purchases.