Educational Offerings

209 – Introduction to Loyalty Liability Management


SKU 023 Category

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.