Loyalty Modeling Toolkit Skill

When to Use

• Designing new loyalty tiers or revamping benefits.
• Building business cases for loyalty investments.
• Stress-testing point liability, breakage, and ROI.

Framework

1. Inputs – member base, transaction frequency, average order value, churn, CAC.
2. Earning Model – simulate points accrual, mission completion, and bonus events.
3. Redemption Model – estimate burn rates, cost per reward, and liability curves.
4. Impact Drivers – model uplift in retention, cross-sell, referral, or ARPU.
5. Scenario Planning – compare base vs optimized vs aggressive variants.

Templates

• Driver sheet (input assumptions, tier thresholds, rewards cost).
• Sensitivity table (goal → driver → delta → impact).
• Executive summary page for approvals.