Two costs, not one
A loyalty programme costs you twice: the monthly fee for the software, and the rewards you give away. Both are usually smaller than owners expect, but it is worth writing them down before you start, so you know what success has to look like.
Cost the reward at what it costs you
A free coffee does not cost you its menu price. It costs the beans, milk, cup and a little of a barista’s time. Use that number. In the example below, a coffee sold for ֏1,200 costs the café about ֏300 to make. These are illustrative figures; use your own.
A worked example in drams
Say every tenth coffee is free. A regular pays for nine coffees, ֏10,800 in total, and receives one that costs you ֏300. The reward costs under 3% of what that customer spent. On top of that, a Starter plan at about ֏8,000–9,000 a month covers the card, the counter scanner and messages to your members.
How many extra visits pay for it
If a ֏1,200 coffee leaves you about ֏850 after its direct cost, around ten extra visits a month cover the Starter plan. That is one extra coffee each from ten regulars, or one returning customer every three days. Anything beyond that is profit the programme brought back.
Paper cards are not free either
Printed cards and stamps cost money, get lost and are easy to copy. More importantly, they tell you nothing: you cannot see who stopped coming or send them a reason to return. A digital card records every stamp and lets you invite members back with an offer.
Check the result after 60 days
After two months, look at three numbers: how many members joined, how many came back within two weeks, and how many redeemed a reward. If people join but don’t return, make the reward easier to reach or send a short offer to members who have drifted away.
Product notes from the private MIMO build. Examples are illustrative, with current availability stated explicitly.
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