Loyalty Modeling Toolkit Skill When to Use - Designing new loyalty tiers or revamping benefits. - Building business cases for loyalty investments. - Stress-testing point liability, breakage, and ROI. Framework 1. Inputs – member base, transaction frequency, average order value, churn, CAC. 2. Earning Model – simulate points accrual, mission completion, and bonus events. 3. Redemption Model – estimate burn rates, cost per reward, and liability curves. 4. Impact Drivers – model uplift in retention, cross-sell, referral, or ARPU. 5. Scenario Planning – compare base vs optimized vs aggressive var…