A NEW BOOK THAT WILL ALLOW YOU TO UNLOCK THE FULL POTENTIAL OF YOUR LOYALTY Currency
ABOUT THE BOOK
Extracting value from loyalty programs used to be the domain of marketing. But not anymore.
Key topics covered:
Design the optimal currency for your loyalty program
Build an effective market place for your points
Optimize liability management
Build the corporate design and organizational structure for your loyalty program
Measure the financial performance of your loyalty program
Generate a valuation for your loyalty program
Understand the new applications of loyalty programs in corporate finance
Gain the investor perspective on loyalty currency businesses
Insights
Introducing The Currency Effect
Firms have long relied on loyalty programs to market their products and services to consumers. But recently, novel applications of loyalty currencies are gaining momentum as well. Thanks to the unprecedented scale and proliferation of points, as well as their unique nature, business leaders are increasingly exploring new and other ways to generate value from the currencies: we define this as ‘the currency effect’.
In successful loyalty programs, points are the exclusive avenue to rewards, at a value to members that cash could never match. At the same time, for points issuers, the use of points offers several advantages over other distribution and pricing channels. This unique combination of value for both consumers and issuers puts points in a sweet spot, unlocking material opportunities for value creation. The sale of points to partners is only the beginning, with many novel applications of loyalty programs in a corporate finance setting starting to gain ground.
Authors
Meet the authors
Evert de Boer
Evert de Boer is a Managing Partner at On Point Loyalty, Singapore, and CEO at Fidivio. He has researched and worked in loyalty strategy since 2000, providing strategic guidance to leading companies globally, including more than 40 airlines. Evert has published numerous articles and white papers on loyalty strategy and finance, including the Harvard Business Review. He is the author of Strategy in Airline Loyalty (Palgrave Macmillan, 2017) and Loyalty Programs and the Currency Effect (Palgrave Macmillan, 2025).
XIao yao chin
Xiao Yao Chin is a Partner at On Point Loyalty, Kuala Lumpur, Malaysia. Her loyalty experience spans program design, strategic planning, member analytics and program valuations. Prior to joining On Point Loyalty, Xiao Yao worked for AirAsia’s loyalty program and contributed to various strategic projects for top financial institutions at Bain & Company in Southeast Asia. She holds a PhD from the University of Cambridge, UK. She is the author of Loyalty Programs and the Currency Effect (Palgrave Macmillan, 2025).
Loyalty points
Find out how you can design an optimal loyalty currency business
Selling points is big business. But the current KPIs, organizational structures and research focus still rests on the conventional impact on members by programs. Now, for the first time, in this new book, the authors unravel the secrets behind running the world’s most successful loyalty currencies and provide hands-on practical guidance on how to reap the benefits from your loyalty currency.
In this never-seen-before tell-all book, Evert de Boer and Xiao Yao Chin open the secret doors to managing what’s become the world’s most aspirational currency: loyalty points. The authors take the reader by the hand and explain step-by-step the requirements to build a world-class loyalty currency. With their unique experience as advisors to the world’s leading loyalty programs, and insights around program valuations, de Boer and Chin for the first time share their built-up knowledge in an unprecedented manner.
Loyalty Survey Insights
To test the scalability, relevancy and viability of the concept of loyalty currency monetization, a global survey was completed in 2024. The survey was targeted exclusively at loyalty management professionals, providing us with unique insights on how industry insiders view the limitations of the conventional model, how they assess the opportunity and what they believe are the associated requirements for successful loyalty currency monetization (also in light of the traditional objectives of loyalty management).
Find out how loyalty professionals view the opportunity presented by loyalty currency monetization, and what is required to pursue the currency effect fully.
Key findings:
of participants
agree that the benefits of currency monetization can be just as significant as the consumer impacts of a loyalty program.
of participants
believe that it is possible for currency monetization and delivering a strong member value proposition to coexist harmoniously, benefiting both the program and its members.
FAQ
Frequently Asked Questions
What is the currency effect?
We define the currency effect as the direct and indirect benefits from loyalty currency monetization. It includes, for example, the revenues from the sale of points to partners, but also the potential increase in enterprise valuation from running a successful loyalty segment. The currency effect describes the potential value generation from the loyalty currency, whereas the member effect captures the impact of loyalty programs on member behavior (for example: increasing the share of wallet).
Who should read this book?
Loyalty Programs and the Currency Effect is an indispensable guide to loyalty program operators, owners and investors across industries.
Why is the currency effect relevant?
Loyalty programs have become ubiquitous. And with that, loyalty currencies have reached an unprecedented scale. Whilst the traditional focus on the member effects of loyalty programs was well established, we believe the scale and relevancy of loyalty currencies warrant an additional lens. For many, loyalty currency finance represents a black box. With this new concept, we offer a practical framework to understand and optimize your loyalty currency.
“As the golden age of loyalty continues, it is a subject we all need to understand much, much more and Evert and Xiao Yao help us do just that”
Adam Daniels, CEO IAG Loyalty
“This book fills a void by thoroughly exploring the potential of loyalty currencies, generously shared by Evert and Xiao Yao for the entire industry’s benefit.”
Jay Malowney, President Points (a Plusgrade company)
“I wish I had this book when I first started running loyalty programs; it asks and answers all the salient questions”
Russ Hinckley, Senior Vice President U.S. Bank, Partner Credit Card Group
Books & Reports
YOUR GATEWAY TO LOYALTY KNOWLEDGE
Affiliates
Supporting Partners
On Point Loyalty is a global consulting firm focused exclusively on the loyalty space. We partner with leading loyalty operators, technology providers, financial institutions and investors to shape and realize their loyalty vision. With tailormade solutions, ranging from strategy consultancy to outsourced operating models, we help our clients to define the future – and create a competitive edge.
Fidivio is the world’s first off-the-shelf financial analysis tool designed specifically for loyalty programs. This intuitive tool allows for precise assessment of a loyalty program's financial performance across various scenarios. Fidivio enables comprehensive P&L tracking, supporting more informed business decisions. It also generates and standardizes financial statements for loyalty programs, saving valuable time and effort.
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