The Zen Register · ledger since 01 Mar 2025 · position at 05 Sept 2026
Facets & Liability
Facets issued
₹56.1L
Redeemed
₹17.1L
Expired
₹0
Gross liability
₹1.2Cr
Carrying value
₹72.4L
Liability roll-forward
Opening + issued − redeemed − expired = closing. Every month, since the register opened.
| Month | Opening | Issued | Redeemed | Expired | Closing |
|---|---|---|---|---|---|
| Opening balance, 01 Mar 2025 | — | — | — | — | ₹63,67,622 |
| Mar 25 | ₹63,67,622 | ₹3,71,118 | (₹67,600) | — | ₹66,71,140 |
| Apr 25 | ₹66,71,140 | ₹2,34,476 | (₹1,00,300) | — | ₹68,05,316 |
| May 25 | ₹68,05,316 | ₹6,31,346 | (₹1,20,300) | — | ₹73,16,362 |
| Jun 25 | ₹73,16,362 | ₹3,72,263 | (₹94,500) | — | ₹75,94,125 |
| Jul 25 | ₹75,94,125 | ₹2,61,879 | (₹1,27,000) | — | ₹77,29,004 |
| Aug 25 | ₹77,29,004 | ₹2,30,550 | (₹1,15,300) | — | ₹78,44,254 |
| Sep 25 | ₹78,44,254 | ₹3,06,993 | (₹83,400) | — | ₹80,67,847 |
| Oct 25 | ₹80,67,847 | ₹3,79,360 | (₹99,200) | — | ₹83,48,007 |
| Nov 25 | ₹83,48,007 | ₹7,62,060 | (₹1,17,400) | — | ₹89,92,667 |
| Dec 25 | ₹89,92,667 | ₹5,51,778 | (₹1,09,100) | — | ₹94,35,345 |
| Jan 26 | ₹94,35,345 | ₹5,32,793 | (₹1,24,900) | — | ₹98,43,238 |
| Feb 26 | ₹98,43,238 | ₹5,18,507 | (₹1,40,900) | — | ₹1,02,20,845 |
| Mar 26 | ₹1,02,20,845 | ₹4,85,740 | (₹1,88,500) | — | ₹1,05,18,085 |
| Apr 26 | ₹1,05,18,085 | ₹3,25,494 | (₹1,55,500) | — | ₹1,06,88,079 |
| May 26 | ₹1,06,88,079 | ₹6,34,811 | (₹1,44,800) | — | ₹1,11,78,090 |
| Jun 26 | ₹1,11,78,090 | ₹2,52,118 | (₹1,42,600) | — | ₹1,12,87,608 |
| Jul 26 | ₹1,12,87,608 | ₹3,24,898 | (₹1,92,400) | — | ₹1,14,20,106 |
| Aug 26 | ₹1,14,20,106 | ₹4,26,264 | (₹1,93,800) | — | ₹1,16,52,570 |
| Sep 26 · to date | ₹1,16,52,570 | ₹51,801 | (₹30,000) | — | ₹1,16,74,371 |
| Since launch | ₹63,67,622 | ₹76,54,249 | (₹23,47,500) | — | ₹1,16,74,371 |
Reconciled to the cards
Closing per the ledger₹1,16,74,371
Less Facets inside the earn hold, not yet on a card(₹1,08,910)
Balances on member cards, 05 Sept 2026₹1,15,65,461
Carrying value at 38% breakage₹72,38,110
The opening balance is the accrual credited against purchase history when the register opened, so the ledger reconciles from the first day rather than from the first campaign. Earned Facets sit in hold for fifteen days in boutique and thirty online, mirroring the return window, so a reversal can never create a negative balance. Nothing has expired: Facets carry a twenty-four month life and any purchase or booked care visit resets the clock on the whole balance.
Issued, redeemed and expired
Monthly, since launch — 18 months of ledger
Redemption has climbed every quarter while issuance has held flat — the closing balance is now broadly level. A liability that stops compounding is a programme that has begun to change behaviour.
Has the card, has never redeemed
7,254
members hold ₹59.0L of unspent Reward Value — 51% of the closing liability, carried for people the house has never had to serve twice.
Open the segmentBreakage as a health metric
83.3%
still outstanding of all Facets ever issued
Target band 28–42% · currently 38%
Breakage is never read as income. High breakage means the register is not changing behaviour, which is the only reason it exists.
The dual conversion
The house spends less, the client feels more
₹17.0L
Face value of Facets applied
₹31.0L
Value the client can name — 1.82× blended
44%
of redemptions went to Care & Access, against a 45% mark by month eighteen
Facets convert at face value against price — one Facet, one rupee — and at three times face against the Care & Access catalogue. Because 44% of Reward Value is taken as care rather than as value against a bill, ₹17,01,000 of Facets delivered ₹30,97,000 of value the client would put a price on, at a fraction of that in real cost to the house. The client feels more, the house spends less, and nothing on the receipt has ever read as a concession on price.
| Where it was applied | Redemptions | Face value | Value delivered | Multiple |
|---|---|---|---|---|
| At the counter — Member Reward Value applied | 686 | ₹13,65,000 | ₹13,65,000 | 1.00× |
| Care & Access catalogue | 550 | ₹9,54,000 | ₹28,62,000 | 3.00× |
The Care & Access catalogue
Where Facets buy three times their face — because time with the house costs the house less than margin
| Facets | Item | Value to the client | Reward Value surrendered | Multiple |
|---|---|---|---|---|
| 1,000 | Monogrammed travel and care kit | ₹3,000 | ₹1,000 | 3.00× |
| 1,200 | Hand engraving, inside band or reverse, up to 24 characters — Mumbai atelier | ₹3,600 | ₹1,200 | 3.00× |
| 2,000 | Heirloom restoration and re-setting consultation, 2 hours with a Zen designer | ₹6,000 | ₹2,000 | 3.00× |
| 2,500 | A guest seat at a collection preview evening or the gemmology masterclass | ₹7,500 | ₹2,500 | 3.00× |
| 3,000 | Independent re-grading and a photomicrograph portfolio | ₹9,000 | ₹3,000 | 3.00× |
| 4,000 | Home appointment: an advisor travels with a curated tray | ₹12,000 | ₹4,000 | 3.00× |
| 5,000 | Bespoke commission deposit, credited in full against the piece | ₹15,000 | ₹5,000 | 3.00× |
Nothing in this catalogue duplicates a benefit a tier already gives free. Where a tier grants a seat at a preview evening, the catalogue sells only the guest seat; where a tier includes cleaning and rhodium restoration, the catalogue offers restoration of a piece the house did not sell. The exclusivity matrix is enforced on the Rules screen, so the register can never be caught charging Facets for something a client already holds.
Cost and return
Twelve months to 05 Sept 2026
What the register costs
Facets issued₹56,11,533
Expected Facet cost, after 38% breakage₹34,79,150
Platform, card issuance, OTP, care delivery₹19,60,008
Fully loaded programme cost₹54,39,158
1.11% of named revenue — against the six to twelve points surrendered to negotiation on a floor that does not know its client’s name.
What it returns
Extra revenue the register brought in₹3,40,79,516
Extra spend from members we contact7.0%
Incremental margin at 38%₹1,29,50,216
Net programme contribution₹75,11,058
Covering ₹54,39,158 at a 38% margin needs ₹1,43,13,574 of incremental revenue — a 2.9% lift on named sales. The measured lift is 7.0%. The register breaks even if only 42% of that lift is genuinely causal.
Breakage sensitivity
The same issuance, re-costed. The objection, answered before it is raised.
| Breakage | Expected Facet cost | Fully loaded cost | % of named revenue | Net contribution | Return |
|---|---|---|---|---|---|
| 20% | ₹44,89,226 | ₹64,49,234 | 1.32% | ₹65,00,982 | 2.0× |
| 30% | ₹39,28,073 | ₹58,88,081 | 1.20% | ₹70,62,135 | 2.2× |
| 38%Current | ₹34,79,150 | ₹54,39,158 | 1.11% | ₹75,11,058 | 2.4× |
| 45% | ₹30,86,343 | ₹50,46,351 | 1.03% | ₹79,03,865 | 2.6× |
Across the whole plausible range the return holds between 2.0× and 2.6×. The case does not depend on which breakage assumption is chosen.
How this is accounted for
Under Ind AS 115 the Facets issued on a sale are a separate performance obligation.
A portion of the transaction price is allocated to them and deferred as programme liability; breakage is recognised proportionally as redemptions occur, never banked at the point of issue. The 38% figure is an estimate of the obligation, held inside a 28–42% target band and revisited by cohort each quarter.
Breakage is reported here as a health metric and nothing else. Of everything ever issued, 16.7% has been redeemed and 83.3% is still outstanding. If redemption keeps rising the liability rises with it, the breakage rate is trued down, and that is the outcome the house should want: unredeemed Reward Value is not a gain, it is a client the register failed to bring back.