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Calcimator

Loyalty Program ROI Calculator

Calculate the return on investment of your retail loyalty program by comparing member vs non-member purchase behavior.

Inputs

$
$

Results

Annual Incremental Revenue

$4,050,000.00

≈ 10 average U.S. homes

Program ROI

11,150%

Annual Program Cost$36,000.00
LTV Lift (Frequency)60%
How to Use This Calculator
  1. Enter active members and average monthly transactions per member, for loyalty members and non-members.
  2. Enter the average basket size (dollar amount) per transaction.
  3. Set the monthly program cost (software, rewards, administration).
  4. Review incremental revenue attributable to the program, program cost, and net ROI.
  5. Check lifetime value lift to quantify the long-term benefit of loyalty membership.

How the result changes with Member Transactions/Month

Member Transactions/MonthAnnual Incremental RevenueProgram ROI
10$20,250,000.0056,150%
35$87,750,000.00243,650%
65$168,750,000.00468,650%
90$236,250,000.00656,150%

What each input means

Active Members
Number of active loyalty program members
Member Transactions/Month
Average monthly purchases per loyalty member
Non-Member Transactions/Month
Average monthly purchases per non-member customer
Average Basket Size
Average dollar amount per transaction
Monthly Program Cost
Total monthly cost to run the loyalty program (software, rewards, admin)

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Active Members = 5000, Member Transactions/Month = 4, Non-Member Transactions/Month = 2.5, Average Basket Size = 45 = 5 input(s) provided
  2. Calculate Annual Incremental Revenue
    Annual Incremental Revenue
    4050000 = $4,050,000
  3. Calculate Program ROI
    Program ROI
    11150 = 11150%
  4. Calculate Annual Program Cost
    Annual Program Cost
    36000 = $36,000

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators.

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