Programs issue points today, but won't know the actual cost of those points for years. How does a program leader make sound business decisions today without knowing the largest expense of the business model?
Accurately estimating future redemption cost on outstanding points is a complex actuarial exercise, particularly with increased uncertainty due to COVID-19.
Loyalty programs need complex actuarial analytics designed to be in compliance with the accounting standards ASC606 (US) and IFRS15 (International).
Getting auditors to sign off on the booked liability can be difficult without robust actuarial support to back it up.
The points issued in future months will have a different cost than those issued this month; properly anticipating these changes is critical to building an accurate financial plan.
It is difficult to predict the impact of business decisions and program strategies on future redemption costs, making it hard make the optimal decision with confidence.
Maintaining the right level of liquidity to cover anticipated redemption costs is a challenging actuarial prediction, particularly with the added cash constraints due to COVID-19.
Pricing points sold to partners to ensure the right level of profitability is a complex actuarial analysis.
Predicted redemption cost is a critical input into customer Lifetime Value (CLV). Before you can accurately predict CLV, you must have accurate redemption cost models.
The root of these business issues is the challenge of accurately predicting redemption costs, which is often the single largest expense in a loyalty program business model. Getting it wrong can completely a flip the profitability picture.
Trusted by major industry leaders, KYROS is the only actuarial firm in the world that focuses solely on loyalty programs.
KYROS built sophisticated predictive models to help us test scenarios for significant changes to our global, multi-brand loyalty program. Their niche expertise in loyalty finance is extensive and highly recommended for any loyalty program CFO.
Learning how different enhancements could affect Customer Lifetime Value and program profitability intrigued us. We now look at decisions through a CLV lens to benefit our program and its members.
KYROS expertise in breakage analytics and liability management has been incredibly helpful for us
In my business, I've maintained a specialty in the area of loyalty program finance and program performance reviews. No one knows liability management better than the team at KYROS.
Robust liability management forecasting often means the difference between millions made and millions lost. KYROS are leaders in the loyalty finance field.
The Loyalty Academy continually seeks to add courseware focused on advanced topics in customer engagement and loyalty. We are proud to have partnered with Len Llaguno at Kyros Insights to create these courses.
KYROS has been instrumental in supporting our clients with highly specialized liability management expertise
As actuaries, KYROS are uniquely placed to enable clever liability management that can make a huge difference to the financial impact of a program
KYROS Insights proven knowledge and expertise in liability planning, evaluation and modeling is an essential service solution that any loyalty program entity should consider employing and over time will realize a more accurate picture to inform P&L.