Points liability

Manage points liability in the Loyalty Engine, including tracking points in circulation, setting liability rules, and accessing insights to balance user engagement and program costs.

Points liability refers to the obligation of the loyalty program to provide rewards or benefits in exchange for the points accumulated by users. It represents the future cost that the program incurs as users earn, accumulate, and potentially redeem points for rewards.

Managing points liability effectively is crucial for the financial health and sustainability of the loyalty program. Administrators should monitor points liability regularly, adjusting the points system and redemption options as necessary to maintain a balance between encouraging user engagement and controlling the program's liabilities.

The Loyalty Engine supports a variety of points liability management options, including being able to:

• see Points liability, including your current points in circulation

• define Points earn, spend & balance caps, such as earning, spending and balance caps

• automatically convert user's points into rewards, to avoid excessive points accrual using Reward auto-purchase

• set rules for Points expiry, to expire points between one and six years after they're earned

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Monitoring points liability

Login to the Loyalty Console and navigate to Dashboard > Points Liability Insights.

By default, the date filter will be set to the current calendar year. Change this to your preferred period if required. The 'current points in circulation' figure is the same regardless of date filter applied.

1. Points awarded shows the total number of points awarded to users in the period selected in the date filter.

2. Points spent shows the total number of points spend by users in the period selected in the date filter.

3. Current points in circulation shows the total number of points currently available to spend by users in your tenant. It does not respond to the date filter. This is a helpful figure as it gives you an idea of the current financial liability of your program.

4. Points awarded vs points spent monthly shows a month-by-month line chart of points awarded vs points spent in the period selected in the date filter. The scale for points awarded is on the left-side y-axis. The scale for points spent is on the right-side y-axis.

5. Average points liability by month shows your historic average points liability month-by-month in the period selected in the date filter.

6. Event type analytics shows the number of points awarded per event type, across all reactors associated with that event type, in the period selected in the date filter.