Loyalty Points Simulator

A tiny tool to model points earning, FX conversion, and redemption value across regions.

This project is part of my Loyalty Systems Series, exploring how loyalty systems behave beneath the UI layer — from event flow to FX reconciliation to partner tiering.

The goal of this simulator is to provide a simple, interactive way to understand how different variables affect the value of a point:

• Region
• FX rate
• Partner tier
• Earn percentage
• Redemption value

The simulation is intentionally small and easy to extend.

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Features (MVP)

This prototype includes:

• Input fields for region, amount, and tier
• Basic points calculation (earn rate × amount)
• FX adjustment for multi-currency setups
• Display of redemption value
• Simple event flow: Earn → Convert → Redeem

Demo Screenshot

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Points Flow Diagram

[Purchase Amount + Region + Tier]
                |
                v
        FX Conversion Layer
      (normalize to USD value)
                |
                v
        Tier & Earn-Rate Engine
     (apply % earn + multipliers)
                |
                v
          Points Calculation
    (points = normalized_amount * rate)
                |
                v
     Redemption Value Estimation
 (points * point_value_in_usd = liability)

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Purpose

Loyalty programs appear simple, but real systems require:

• Clear event definitions
• FX and currency reconciliation
• Tiered and partner-specific rules
• Separation of earn vs. redeem logic
• Stable truth across markets and ledgers

This simulator provides a small, understandable way to visualize these concepts without enterprise-level complexity.

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How This Maps to Real Loyalty Systems

Even though it's minimal, each step corresponds to real architecture:

Region + FX Rate

Real systems normalize spend into a base currency for accounting and liability modeling. FX is a critical preprocessing step.

Tier (Silver / Gold / Platinum)

Tiers act as rule layers that modify earn behavior. Production engines include partner rules, category rules, campaign boosts, and status multipliers.

Earn Rate (%)

Represents the value exchange contract: how much spend → how many points. Real earn rules vary by partner, product, SKU, or agreement.

Points Earned

Would normally be written to a dedicated points ledger with ACID guarantees, reconciliation processes, and downstream integrations.

Redemption Value (USD)

This models program liability. Every point earned is a future financial obligation. Real loyalty systems track breakage, margin, and redemption mix.

This tool is a legible micro-version of how reward systems work under the hood.

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Part of the Loyalty Systems Series

Main repo:
https://github.com/rtfenter/Loyalty-Systems-Series

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Status

MVP implemented and active.
This simulator is intentionally lightweight. It focuses only on the core mechanics required to demonstrate loyalty system behavior, not on building a full production engine.

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Local Use

No installation required.
If you'd like to run the simulator locally:

1. Clone the repo
2. Open index.html in your browser

That's it — everything runs client-side.