Board report

How to use it

1. Start no later than ten working days before the board meeting where the loyalty programme is on the agenda.
2. The programme owner fills in every section except the finance sign-off.
3. Finance checks the cost, liability and forecast figures and dates section eight.
4. The executive sponsor adds a one line endorsement and circulates the report with the board pack.
5. Allow two to three hours once the underlying programme data exists.

What goes in each section

1. Programme summary and ask

State the programme name, the reporting period and the single approval being requested. A good answer names the programme, covers one period, and says whether the board is being asked to renew, expand, change or end it.

2. Membership and activity

Record active members at the start and end of the period, plus net change. Add the monthly active rate and the share of members who earned or redeemed points in the last 90 days. A good answer compares each figure to the prior period and explains any movement beyond the variance threshold set in the annual plan.

3. Revenue and cost performance

Record revenue linked to the programme, such as incremental purchases by enrolled members, partner fees and margin on member-only offers. Record the full running cost, including rewards issued, platform fees, staff time and marketing. A good answer shows revenue and cost side by side and states the gross contribution as a positive or negative amount.

4. Redemption liability and breakage

Record the value of points or rewards outstanding, the value expected to be redeemed and the rate at which points expire unused. A good answer updates the liability each period and shows whether the breakage assumption still matches actual redemption behaviour.

5. Forward forecast

Project the next two quarters or the next financial year, whichever the board uses. Show member growth, redemption cost, operating cost and net contribution under the recommended option. A good answer uses the same line items as section three, with no new categories appearing for the first time in the forecast.

6. Decision requested

State exactly what the board is being asked to approve, the cost of that decision and the date the approval lapses. A good answer is phrased so the board can copy it into the minutes, such as approve a stated amount for a stated period or approve the proposed change to earning rates.

7. Risk and mitigations

List the two or three risks that would change the board's view, such as lower than expected redemption, higher than expected redemption, member data quality or regulatory change. For each risk write the early warning number you will watch and the action you will take if it breaches. A good answer names a threshold and an owner, not just a general concern.

8. Finance sign-off

Finance confirms that the cost figures, liability figure and forecast assumptions have been checked. A good answer is a dated line from a named finance owner recording that the numbers tie to the general ledger and the breakage treatment is consistent with the accounting policy.

What to watch for

The question most people skip is the specific ask in section six. A report that says the board should continue to support the programme without an amount, a term and a date gives the board nothing to approve or refuse.

The answer that is always wrong is the incremental revenue figure. If the report treats total revenue from members as all incremental, the board cannot see the actual effect of the programme. Compare member purchasing against non-members or against a period before enrolment.

The section most often copied from a vendor is the risk section. Vendor text says the platform is secure and compliant, but it does not list the redemption or membership risks that matter to the board. Replace any generic risk wording with a threshold and an owner.

A missing or stale finance sign-off makes the report unusable at the board table. The sign-off must be dated in the current reporting cycle and must reference the same figures used in the decision section.