Estimate the revenue impact of launching a loyalty program for your retail business.
The calculator estimates extra revenue from lifting your repeat-purchase rate with a loyalty program. It takes the gap between your expected and current repeat rate, applies it to your monthly customer count to get additional repeat customers, then multiplies by average order value for monthly impact and by yearly visit frequency for annual impact. Additional annual revenue = (expected repeat rate - current repeat rate) x monthly customers x average order value x visits per year.
With 500 monthly customers, a ₹1,200 average order value, repeat rate rising from 25% to 40%, and 6 visits per repeat customer a year: additional repeat customers = 500 x (0.40 - 0.25) = 75 per month, adding ₹90,000 monthly and roughly ₹5.4 lakh in projected additional annual revenue.
It can be, because retaining an existing customer usually costs less than acquiring a new one. Even a modest lift in repeat rate compounds over the year, but you should net out the cost of rewards and points issued.
Points redeemable against future bills, cashback into a digital wallet, and tiered membership perks work well. Many kirana and fashion stores also run simple 'buy 10, get 1 free' style rewards over WhatsApp.
Capture the customer's mobile number at billing and link purchases to it, so your POS or loyalty tool can measure repeat rate and visit frequency instead of guessing.
No. They are estimates based on your inputs. Actual results depend on reward design, redemption rates, competition, and how consistently you promote the program.
Commmerce includes digital wallet, loyalty points, membership tiers, and gamification.
See Loyalty & Wallet
