What is Loyalty Program Liability?

Liability Management

Managing a loyalty program and its liability is a complex, multi-faceted role. In this comprehensive overview, we’ll break down everything you need to know about planning your program, balancing risk, accounting strategies and more.

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An Introduction to Accounting for Loyalty Programs

8 videos | Total: 15 minutes

What is Loyalty Program Liability?

2 minutes

What You Need to Predict to Quantify the Program Liability

2 minutes

What is Breakage and Ultimate Redemption Rate?

1 minute

The Three Different Types of URR

4 minutes

What is Cost Per Point and Fair Value Point?

1 minute

What are the Relevant Accounting Entries to Book a Loyalty Program

3 minutes

Accounting Liability vs. Economic Liability

1 minute

5 Things Marketers Need to Know about Loyalty Program Liabilities

5 videos | Total: 10 minutes

Liabilities Can Have Huge Financial Impacts

2 minute

Profits Can be Generated When Redemption Happens

2 minute

A Growing Liability is a Good Thing... If You Have Accurate Models

1 minute

A High URR is Good... and How to Prove it to Finance

3 minutes

Program Liability is an Asset!

2 minutes

(Coming Soon!) How to Estimate Breakage

(Coming Soon!) What Drives Changes in Breakage

(Coming Soon!) How to Build a Financial Plan for your Program Liability

(Coming Soon!) Best Practices for Managing Your Program Liability

Liability Management Course Schedule

Liability Management

An Introduction to Accounting for Loyalty Programs

A high-level overview of what programs need to measure, record and report when it comes to accounting and liability.

Liability Management

5 Things Marketers Need to Know about Loyalty Program Liabilities

Most marketers don’t get in the weeds when it comes to loyalty program liability. But to see the most ROI on your program, there are five things every loyalty program marketer should know.

Liability Management

How to Estimate Breakage
(Coming Soon!)

An accurate understanding of breakage is key to your program’s decision-making. We’ll talk through tactics that help you maximize the accuracy of your breakage estimates.

Liability Management

What Drives Changes in Breakage
(Coming Soon!)

Whether you’re looking to affect breakage and improve program performance or just gain a deeper understanding of what impacts it, this video explores the various factors that move the needle on this critical data point.

Liability Management

How to Build a Financial Plan for your Program Liability
(Coming Soon!)

In this step-by-step overview, we’ll talk through how to build an actionable financial plan; including predicting how breakage will change over time, how the liability will evolve over time, and how much profit your members will generate in each future month.

Liability Management

Best Practices for Managing Your Program Liability
(Coming Soon!)

Our final video on Liability Management, this segment includes important strategies and tactics for anticipating program changes, planning for shifts in performance and sifting through the data to measure what matters.