Valuing customer loyalty programs
Mercer is one of the leading global providers of customer loyalty program valuations with over a decade of loyalty program valuation experience. We have developed actuarial and financial techniques to help you quickly and efficiently assess the impact on your loyalty program.
Mercer is currently working with some of the largest customer loyalty program providers to assist them in dealing with the new IFRIC 13 accounting changes. These changes require businesses to value customer loyalty programs in a consistent, precise and transparent manner.
Our analysis covers the key requirements of IFRIC 13 and includes:
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The probability of redemption or expiry of a point/mile.
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The market value of each point/mile.
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Disclosure information to allow the client to meet its IFRIC 13 obligations (i.e. quantity of revenue to defer and to release).
Other Mercer loyalty program services
Mercer can also provide:
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Sensitivity analysis: Quantifying the immediate and future financial impacts associated with changing a program’s terms and conditions. This enables providers to make informed decisions regarding marketing strategies and optimizing the impact of any changes to their customer loyalty program in their financial accounts quickly.
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Analysis of financial drivers to a program
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Financial governance and risk management
Further information
For more information or for a copy of our ‘Valuing your Customer Loyalty Program’ brochure please contact:
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Asia Pacific Ian Donaldson
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Brazil José Roberto Carreta
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Europe Peter Godding
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Japan Shinichi Nasukawa
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Mexico Alfredo Alfaro
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United States & Canada Louis Gagnon
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Valuing your Customer Loyalty Program
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