Financial Modeling Guidelines for Loyalty Programs

Loyalty programs are not risk-free endeavors. In today’s organizations, the CMO and CFO demand to know the ROI of all initiatives, especially for a large undertaking like a loyalty program. This, in turn, necessitates the need for a complete financial analysis to understand the income statement, balance sheet, and cash flow implications of your loyalty initiative. In this paper, we will share some of our best practices and structural elements of how our loyalty strategy team models programs.

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