Pillar
Loyalty economics
Loyalty is misread as a marketing cost. It is a balance-sheet business — breakage, liability, and unit economics decide whether a program creates or destroys value.
- How loyalty programs actually make money Loyalty is widely treated as a marketing cost. It's a balance-sheet business — and three numbers decide whether a program creates or destroys value.
- How to price loyalty points for partners — and why most programs overprice them Selling points or miles to a partner looks like pure-margin revenue. The price is set by two things — that partner's breakage and the gap between perceived value and settlement cost — and the common mistake isn't charging too little. It's charging too much.