Answers / Loyalty programs

    How do I calculate point liability for my loyalty program?

    Written by PEKO Team.Last updated: 05/24/2026.

    Point liability = outstanding points × redemption rate × cost per point. For most F&B programs that's 0.3–0.8% of trailing-12-month revenue. Tracking it monthly prevents the year-end surprise that has killed several Vietnamese programs.

    Published: 05/24/2026

    Every unspent loyalty point is a future cost — a discount you've already promised. That obligation, in money, is your point liability. Operators who ignore it spend years issuing points generously then panic when redemption spikes during a campaign.

    The formula has three inputs: outstanding points balance, expected redemption rate (the share of points that will eventually be redeemed vs expired), and cost per point in money. For F&B in Vietnam, redemption rates land between 55% and 78%, and cost per point is typically 200–500 VND.

    Cap exposure with expiry rules

    Points expire after 12–18 months of inactivity is the standard. Without expiry, liability grows forever.

    Track monthly

    A monthly liability number, plotted against trailing-12-month revenue, surfaces drift early. The ratio should stay under 1%.

    Stress-test before campaigns

    Before any '2× points' campaign, project the additional liability. A 30-day double-points promo can add 4–8 months of normal liability.

    FAQ

    What is a healthy liability-to-revenue ratio?

    0.3–0.8% is the healthy band for F&B. Above 1.2% means either points are too generous or redemption friction is too high.

    Does PEKO calculate liability automatically?

    Yes. The points overview dashboard tracks outstanding balance, expected redemption rate from historical data, and surfaces total liability in money — refreshed nightly.

    Calculate your PEKO ROI

    Related

    People also read