Points reporting for financial teams
Additional resources to review:
CFO’s often require credited actuarial opinions to showcase the liability of their loyalty programs. The goal is for the org to have clarity and peace of mind when liabilities are reported in financials. Reporting loyalty programs with ASC 606 and IFRS 15 should not be difficult. We’ve compiled a list of tips for you to manage your programs and help direct your financial process. *Alpine IQ is not a financial advisor, please seek your own counsel to assure that you are in compliance.
This guide will be about gather the necessities to report on for breakage reports and quarterly financials. We have many logs and analytics dashboards that are used for other points related inquiries but this article is built for bookkeeping specific tasks.
Before you contine, please understand that you will need to decide on how you are going to report your points. You can report points based on each customer (What they specifically redeemed/ earned etc not attached to a store. Global liability essentially) OR by store (Our system will attempt to assign points accrued/ redeemed/ expired directly to transactions with the users PII to a store location. Store level liability). Downloading customer driven reports over time will seem confusing due to customer records often merging with eachother (Spouse wants to merge with other Spouses account, email/ phone changes and merges with another previous record to align points when a customer or budtender fixes a record in the point-of-sale, etc.). Due to licenses commonly being owned by seperate entities across markets, the "Per store" report detailed below is the right choice for you.
Scheduling points reports so you don't need to login (Customer based points)
- Login to Alpine
- Click on "Settings" in the top left of the navigation bar
- Go to the "Points & permissions" tab
- Scroll to the bottom and you will find a reporting tool "Schedule a Points balance Report". Fill out the form with your desired sending dates and email + Save
Pulling reports that have not been pre-scheduled: (Customer OR By Store based points)
- Login to Alpine IQ
- On the homepage look for the stat tile called "Loyalty impact" and click on the button within it titled "Points reports for CFO's". This will take you to the audiences page.
- Find the audience you wish to analyze for a time period. Typically for quarterly points reports this is an audience containing all of your customers. Hover over the 3 dot icon on the far right side of the table for the audience and click on the "Star" icon.
- Toggle if you would like points to be calculated based on each unique customer OR by store. It is recommended that you pull "By Store" if you are larger than a single store operator or plan to sell your store in the near future.
- Select the date range for the report
- Enter the emails you want the report to be sent to and save
On the homepage of our dashboard you can find the following metrics. Points outstanding is your CURRENT total. Other metrics are shown for the "Last 90 days".
Points are issued based on many methods. Users can accrue based on:
- Transactions (Spent x on total order get y points)
- Visits (Visited x times but not more than y in time period.)
- Points gifts/ boost (When a customer falls into an audience or is sent a specific campaign there are options to boost their points. Example: "When a customer abandons an online shopping cart, send them a message to come back and complete the order and gift them 100 points to incentivize it.")
- Points multiplier (When a customer falls into an audience, they can receive a points multiplier on orders/ visits made during the time they are within the audience. Example "Purchase X brand name, get 2x points", "Shop during 3-6pm and get 3x happy hour points")
- Manual adjustments (When staff makes a manual adjustment)
- API driven integration partners that you've connected (Virtual budtender tools gifting points in exchange for customer reviews, flat csv files imported into your database with new points values, etc.)
- Block adjustments (When our system merges a customer into another profile and that causes us to recalculate the overall points of the combined individual. In some edge cases points can go negative when this happens. We automatically true them up to 0 points instead of having them accrue from a negative number given the customer is not generally at fault. You may turn off Block Adjusments by asking your account rep)
When a customer accrues points due to them doing something not tied to a specific store, those points are assigned to an "Unknown" row in the reports downloaded on a per store basis. These can be considered global liabilities.
Alpine IQ assigns points to specific stores by lining up when redemptions occurred to when transactions were performed whereby those redemptions could be performed containing the same PII in both platforms (Alpine IQ <> The point of sale you use). There are some redemption flows that are "Groupon style" and rely on proper in-store SOP's to align with our reports. Depending on your organizations settings it's possible to have users redeem points without being at a store location. This is the equivilent to me ripping up a coupon you gave me and I can no longer re-use those points unless you gift them back. The opposite is also true with "Groupon style" redemption where if SOP's aren't followed properly, a budtender could simply give a customer a discount manually but they don't actually collect the "coupon" by redeeming it with the customer. Most Alpine IQ clients leverage modern point-of-sale infrastructure which has Alpine IQ built in to redeem natively. Being natively integrated solves these discrepencies but it's important for us to mention it in this article.
Points are calculated based on the real time state of the ledger. If an organization decides they suddenly wish to expire points after 90 days, those points are historically removed immedietly to make the ledger up to date with the settings provided. Changing your ledgers main functionality is a pretty large change but a less common example could be that customers merged over time which caused us to recalculate the combined records points history. The "By store" reports help with this issue due to a majority of accrual taking place via transactions and dollars spent. If your org suddenly imports a file of points for current customers and updates those to override the state of their points, you can expect that previously downloaded reports would not match even for an identical date range.