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subscription loyalty basics
A subscription loyalty model exchanges recurring payment or access for defined benefits. Price the benefit, state renewal and cancellation rules, and control the liability created by unused value.
## The mechanism
Define the qualifying event, value change, owner, correction path, and member explanation. Keep eligibility, liability, fulfilment, consent, and reversal as separate rules. The operating control must be testable from the ledger.
## Worked example
Illustrative arithmetic: a member pays 12 dollars for a month and uses 3 included benefits. If each benefit has a fulfilment cost of 2 dollars, the used portion costs 6 dollars.
## Do it
State the rule in one sentence. Map the event that starts it, the event that changes value, the exception path, and the review action. Test ordinary, cancelled, duplicated, and disputed cases before release.
## Common mistakes
- Measuring activity instead of the target behaviour. Name the counterfactual. - Treating face value as operator cost. Price fulfilment and correction. - Hiding exclusions or expiry. Put the boundary beside the decision. - Automating an undefined rule. Resolve ownership before implementation.