Loyalty program ROI calculator
Before you launch a loyalty program, see what a higher repeat rate is worth in extra customers, revenue and profit over a year.
Example numbers. Replace them with yours.
- Extra profit per year
- USD 4,050
- Extra repeat customers
- 50
- Extra revenue per month
- USD 3,000
- Extra revenue per year
- USD 9,000
What it calculates
A loyalty program pays off by getting more customers to come back. The calculator takes your current repeat rate and the rate you expect with the program, and turns the difference into extra repeat customers, revenue and profit. Compare the profit with what the program costs to run, including the rewards you give.
How to read the result
The profit here is before program costs. Subtract the platform fee and the value of rewards to get the real return. Be careful with the expected rate: start with a small lift and measure it.
Learn the metric:Customer lifetime value (LTV)
The formula
Extra repeat customers = Customers × (rate with program − rate now) Extra revenue per month = Extra customers × AOV Extra revenue per year = Extra customers × AOV × repeat orders per year Extra profit per year = Extra revenue per year × margin
Worked example
Example inputs
- Customers per month
- 1,000
- Average order value
- USD 60
- Repeat rate now
- 20%
- Repeat rate with the program
- 25%
- Repeat orders per year
- 3
- Margin
- 45%
Results
- Extra profit per year
- USD 4,050
- Extra repeat customers
- 50
- Extra revenue per month
- USD 3,000
- Extra revenue per year
- USD 9,000
What changes the result
Repeat rate with the program at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Repeat rate with the program | Extra profit per year | Extra repeat customers |
|---|---|---|
| 22.5% | USD 2,025 | 25 |
| 25% | USD 4,050 | 50 |
| 30% | USD 8,100 | 100 |
| 35% | USD 12,150 | 150 |
| 40% | USD 16,200 | 200 |
Use your real numbers
Analify reads customers, repeat orders and order values from Shopify, so you can measure your real repeat rate before and after a program.
Analify already reads 5 of these 6 inputs live, from Shopify
Start freeQuestions
How do I measure loyalty program ROI?
(Extra profit from repeat orders − program cost) ÷ program cost, where program cost includes the platform and the rewards.
What repeat rate should I expect from a loyalty program?
Measure it. Run the program for a group of customers and compare their repeat rate with customers outside it.
Is a loyalty program worth it for a small store?
It is when you have enough repeat buyers for a small lift to cover the cost. Use your real numbers in the calculator.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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