What Should One Loyalty Point Be Worth?

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2026-09-14 11:23:33 -

A loyalty point has two prices: what a customer pays to earn it, and what you pay when they spend it. Get the ratio between them wrong and you either run a programme nobody engages with or one that quietly eats your margin. Start From the Redemption Value, Not the Earn Rate The instinct is to decide how many points a dollar earns. Work backwards instead. Decide what percentage of revenue you...

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