Something we think about a lot at Kobie is: Loyalty liability, or to the laymen, the accumulated miles and points that go unredeemed by millions of loyalty program members. It’s important to realize that it’s not only a major stumbling block toward true profitability, but it presents a financial reporting nightmare, as well.
Loyalty program designers and the companies that implement them have quite the accountability conundrum. Say your loyalty program nets one million dollars in revenue....