Loyalty Program Financial Health

Meridian Health & Wellness Club · 67,000 Members

Period:

Net Contribution Margin

6.8%

-2.4pp vs Q1

Fulfilled Cost % Revenue

38.4%

+5.2pp

365d+ Liability

24.1%

+6.1pp · Threshold 28%

Breakage % Revenue

16.2%

+1.8pp

Tier Benefit Cost / Member

$14.30

+$2.10

Median Redemption Lag

118d

↔ Stable

Points Liability Aging Profile

24.1% of liability is 365d+ old, approaching 28% policy threshold. Gold tier contributes 42% of aged liability.

Campaign Incremental Revenue ROI (Last 6 Campaigns)

Vendor Reward Discount Recovery

Travel Partners 82%

Retail Gift Cards 91%

Wellness Services 64%

Premium Bundles 48%

Vendor margin recovery % = discount recovered / total fulfillment cost

Reward SKU Margin Analysis (Top 12 by Volume)

Reward SKU	Volume %	Fulfillment Margin	Avg Points Cost	30d Retention Lift	Action
Spa Day Voucher	3.8%	-4.1%	12,500	+2.3%	Discontinue
Premium Supplement Bundle	6.2%	-1.2%	8,900	+5.1%	Renegotiate
Fitness Class 10-Pack	11.4%	+18.3%	6,500	+12.8%	Expand
Healthy Meal Kit	9.7%	+22.1%	5,200	+9.4%	Expand
$25 Retail Gift Card	18.3%	+6.4%	2,500	+3.2%	Maintain
Wellness Consultation	4.1%	+31.2%	7,800	+18.6%	Expand
Digital Workout Program	7.9%	+42.7%	3,200	+7.1%	Expand
Travel Hotel Night	5.3%	+12.8%	15,000	+4.5%	Maintain

Tier Upgrade Revenue Halo by Tier

Program Operating Expense Ratio

Fulfilled Cost % Revenue

38.4% +5.2pp

Breakage Revenue %

16.2% +1.8pp

Median Redemption Lag

118d Stable

Program P&L Waterfall (Last 12 Months)

Net Contribution: $2.14M (6.8% margin). Primary margin compression: SKU fulfillment cost (+$1.8M) and tier benefit escalation (+$0.6M).

Data Sources: Antavo (loyalty events, refreshed 2024-12-19 06:00 UTC) · NetSuite ERP (fulfillment cost, refreshed 2024-12-19 05:30 UTC) · Salesforce (attributed revenue, refreshed 2024-12-19 07:00 UTC)

Point Valuation: $0.008 per point (blended redemption value) · Liability recognized at issuance · Breakage recognized at 24-month expiry

Policy Thresholds: 365d+ liability ceiling 28% · Fulfillment cost % revenue target ≤35% · Campaign ROI floor 2.0x