Email Marketing RulesLoyalty Program Liabilities: Definitions & Recommendations
When you launch a points-based loyalty program, you’re creating a micro-economy with its own currency, market dynamics, and—most importantly from a legal standpoint—liabilities. Because these points can have monetary value that’s realized at the time of redemption, companies must defer revenue to cover these costs.
In this post, Oracle CrowdTwist Senior Strategist Carly Mathews reviews key terms and definitions from the Financial Accounting Standards Board’s lengthy guidance on loyalty program accounting, including:
- Points issued
- Points burned
- Outstanding points
- Redemption rate
- Cost per point
With an understanding of all of those terms, you’re then able to calculate your loyalty program liability.
>> Read the entire post on Oracle’s Modern Marketing Blog
Welcome! Email Marketing Rules is your guide to understanding the best practices of this complex, often misunderstood channel as you craft the best executions for your brand. Every week, we’ll explore strategies and tactics, discuss tips and inspiration, and dig into industry news and trends.
Chad S. White
Head of Research
Oracle Digital Experience Agency
Author of Email Marketing Rules and nearly 4,000 articles about digital and email marketing
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