Member funnel
Total number of users enrolled in the loyalty program. The base input that sets the program’s scale.
Active rate (%)Share of enrolled members engaged enough to earn points. Industry average: ~50% (Bond Loyalty Report — active membership).
Reward valuation
Your active member’s average annual spend on the brand’s products/services.
$
What percentage of a member’s annual spend comes back as rewards. Industry range: 1–5% (retail loyalty benchmark) — this is the program’s generosity level.
Annual reward value per active memberCalculated automatically: annual spend × reward return rate. The monetary value of the annual points per active member.
$0 / yr
Point earning channels
Point valuation
Average points one active member collects in a year across all earning channels (usage, campaign, survey, quiz, birthday, video).
Point value (currency/point)Calculated automatically: annual reward value per active member ÷ annual points per active member. That is, the monetary worth of one point at redemption.
$0.00
Point redemption
Breakage (%)Share of earned points that expire unredeemed. Industry range: 10–30% (LoyaltyOne/Colloquy census). High breakage lowers cost but signals weak engagement.
Year-1 redemption ramp (%)In a new program members accumulate first, then redeem; year-1 redemption is lower than steady state. Modeling range: 40–60%.
Budget setting
Contingency margin against forecast uncertainty. Typical budgeting practice: 10–15%.
%
This tool provides an estimated budget model; inputs are illustrative assumptions based on industry benchmarks and should be calibrated with your own data. Results do not constitute investment or financial advice.
Methodology & sources
- IFRS 15 (formerly IFRIC 13) — loyalty point liability and breakage accounting
- Bond Brand Loyalty – Loyalty Report — active member rate (~50%)
- LoyaltyOne / Colloquy — breakage range (10–30%)
- McKinsey – Making loyalty pay — earn/burn balance and reward return rate
Estimated budget
Year-1 cash budget
$0
Cost actually redeemed in the first year due to the ramp.
Steady-state budget
$0
Annual cost once the program matures.
IFRS 15 point liability
$0
Accrued reward obligation net of breakage (separate from cash outflow).
- Active members
- 0
- Points per active member
- 0
- Monetary value of annual points per active member
- $0
- Annual points issued
- 0
- Total monetary value of issued points
- $0
- Redemption rate
- 70%
- Monetary value of points never redeemed (breakage)
- $0
- Redeemed value (steady)
- $0
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