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THE FEUTEX TOOLKIT

Loyalty Points Redemption Budget

Estimate redemption value and economic cost of an outstanding loyalty balance.

Ecommerce workspace● Runs in your browser
01 Your input
02 Your result
View or copy raw result data
FormulaFace value = v.points*v.value ; Expected redemption value = v.points*v.value*v.redemption/100 ; Expected fulfillment cost = v.points*v.value*v.redemption/100*v.cost_share/100
Sources and model references

Worked example

Inputs

Points
1000000 points
Value
0.01 currency/point
Redemption
60 %
Cost share
40 %

Expected results

Face value
10000 currency
Expected redemption value
6000 currency
Expected fulfillment cost
2400 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

  1. Enter your own assumptions using a consistent currency and period.
  2. Review the scenario outputs and compare alternative inputs.
  3. Check the stated model limits before using the result in an operating plan.

Try this example

{
  "points": 1000000,
  "value": 0.01,
  "redemption": 60,
  "cost_share": 40
}

Accuracy and scope

Operational redemption budget, not accounting liability recognition. Redemption and cost assumptions are supplied by the user.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.