209 – Introduction to Loyalty Liability Management
Date / Time
The finance and accounting component of loyalty programs is not the most exciting, but it is a critical part of running a program on an on-going basis.
In this course, students will receive an overview to loyalty program liabilities for currency-based programs.
We will cover:
- Breakage, Ultimate Redemption Rate (URR), Cost Per Point (CPP), Fair Value Per Point (FVPP) – what these are and how to estimate them
- The relevant accounting standards for loyalty programs and how they work
- Best practices to anticipate changes in breakage in your financial plans
- At the close of the course we will discuss some best practices to convince finance that the program liability is good for the organization