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name description
loyalty-modeling Use to model economics, tiers, and impact forecasts for loyalty programs.

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.

Tips

  • Keep calculators modular so benefits can be toggled quickly.
  • Align with finance on liability recognition + accounting treatment.
  • Pair with plan-loyalty command to ensure blueprint is financially sound.