LOYALTY PROGRAMS AND THE CURRENCY EFFECT
Global Experts Reveal the Hidden Mechanics of Loyalty Currencies and How Businesses Can Profit from Them
SINGAPORE, Feb. 25, 2025 /PRNewswire/ -- A groundbreaking new book, Loyalty Programs and the Currency Effect, is set to transform how businesses view the potential of loyalty programs. Written by global loyalty experts Evert de Boer and Xiao Yao Chin, the book unravels the dynamics of loyalty currencies - considered by many as a "black box" - and reveals how companies can harness them for financial success.
"Loyalty points are more than just rewards - they have become a global financial force," the authors explain. "Each year, an estimated $300 billion worth of new points is issued. When combined with existing balances, loyalty currencies would rank as the world's third-largest virtual reserve, trailing only the U.S. Dollar and Euro."
Despite their scale and profitability, loyalty programs are still largely viewed as traditional marketing tools. The book challenges this perspective by introducing a new framework that highlights how businesses can strategically manage loyalty currencies to unlock various sources of value creation, ranging from measurable bottom-line contributions to enhanced enterprise valuations.
"Our aim was to provide a comprehensive guide to all facets of loyalty currencies," say de Boer and Chin. "We introduce the 'currency effect' - the value that can be unlocked by optimally managing a loyalty currency. Our book provides both a strategic framework and practical insights, helping industry stakeholders maximize the potential of their programs."
Drawing from their extensive experience advising the world's top loyalty programs, the authors offer a behind-the-scenes look at how points work, how they generate profits, and how businesses can leverage them for competitive advantage.
Loyalty Programs and the Currency Effect is now available for purchase. For more information, visit www.thecurrencyeffect.com
About the authors:
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).
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.
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