How much are loyalty points worth?
Before you start you loyalty program, know how much your points are worth.
Your points are worth something only when they are spent. This is one of the most important steps in Retaining your clients. You can learn more about this by attending our Acquire, Convert, Retain seminar here
When you know the value of the points and the amount of points it takes to buy something then you know how much each point is worth to the customer. This is called the “Redemption Value”. Setting the redemption value is the first step in creating your loyalty program.
Most retailers have a reception value of 1 cent, but you can set your value to anything. If you set your points to be a match, like $1 = 1 point then your customers will see their points are really valuable. Many merchants set their points at a smaller fraction and this gives the impression of being really “Rich” in points.
Just remember to set the value of your points before you start your reward program!
See the entire series from Sweettooth in video format here
