What should my rewards structure be?

To determine the best rewards strategy for your business, you should consider three primary factors: your customer demographic, your industry and your average check size. We have done extensive research within our customer base to discover the rewards strategies that work the best for fostering loyalty among customers, and have based the following general template on those findings. In addition to the chart below, consider the following rules of thumb when creating rewards:

Customers should be able to earn a reward within the first 3-5 visits. If your average check size is $10, your lowest point reward should be ~50 points.

Incentivize saving points, the most attractive reward is the highest point value reward

Each reward should be roughly worth 10% of what a customer had to spend in order to buy that reward. If your customers earn 1 point for $1 spent, a 100 point reward should be worth ~$10.

Customers prefer $ off rewards to % off rewards. For this reason, we never suggest having the highest point value reward be a % off discount.

Offer swag at a high point value. Branded pint glasses are a very popular reward, and it benefits your brand to be promoted organically by your fans.

Experiential rewards (e.g.: private wine tasting for two, sushi rolling class or having a menu item named after you) create memorable experiences your most loyal customers could enjoy once they’ve attained enough points. Having a mix of transactional rewards (e.g.: 25% off Check, or $5 off Entree) and experiential rewards is a great way to liven up your rewards store.

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