Value of your perks/benefits?
- Gold and Platinum Member levels offer perks and benefits and should cost very little or nothing at all to you. They should have a high perceived value to your customers or make your customer feel important. e.g free refills on pop, endless fries, receive special invites, get priority seating etc…
Value of your rewards?
- Welcome Reward (1x only) – This is simply a Thank you for joining your reward program. Give your customers something that costs you pennies but your customer dollars.
- Birthday Reward (once a year). Your cost should be ~ 10% of your customers required spend. If your customer is required to spend $34 then your cost should be no more than $3.40. Retail value might be $10 or higher.
- Platinum Reward – Your cost for the reward can be as low as 2% and no more than 10% of your customers required spend to achieve it. e.g. If your customer has to spend $84 then we suggest the reward costs you a maximum of $8.40.
Perceived Value is the important part of your Reward Program. Make your customers feel important or give them something that costs them dollars and only costs you pennies.
You do not have to give away the farm to have a great loyalty / reward program. Read this blog post “Do Carrots Really Work?” and notice how little the establishments actually give away.