Question 1

What is loyalty program ROI?

Accepted Answer

ROI (Return on Investment) measures how much profit you earn relative to the cost of running a loyalty program. It accounts for the extra revenue from increased customer visits minus the cost of rewards and the platform subscription.

Question 2

How accurate is this calculator?

Accepted Answer

This calculator provides an estimate based on industry averages and the inputs you provide. Actual results depend on factors like your location, competition, customer demographics, and how well you promote the program. Use it as a starting point to understand the potential value.

Question 3

What if I don't know my gross margin?

Accepted Answer

Here are typical ranges by industry: cafes and bars 70-80%, restaurants 55-70%, retail stores 40-55%, beauty salons 55-70%, pharmacies 20-30%, gyms 75-90%, bookstores 35-45%, pet shops 30-45%. Select your industry preset and we will fill in a reasonable default.

Question 4

How does Fedele's points system work?

Accepted Answer

Customers earn points for every purchase based on the amount spent. For example, 1 point per euro. When they accumulate enough points, they can redeem a reward you define — like a free product or discount. Everything is managed digitally through the Fedele app using barcodes.

Question 5

Why is the Fedele subscription included in the calculation?

Accepted Answer

We believe in full transparency. By including the Pro subscription cost, you can see the true net profit from your loyalty program — not just the gross revenue uplift. Even after the subscription, most businesses see a significant positive return.

Question 6

Is a loyalty program worth it for small businesses?

Accepted Answer

Absolutely. Studies show that increasing customer retention by just 5% can boost profits by 25-95%. Small businesses often benefit the most because loyal customers also bring word-of-mouth referrals. Fedele is designed specifically for small businesses with simple setup and no hardware required.

Question 7

What is loyalty lift?

Accepted Answer

Loyalty lift is the percentage increase in customer visit frequency driven by your loyalty program. When customers are earning points toward a reward, they tend to choose your business more often over competitors. Typical loyalty lift ranges from 10% to 25% depending on the industry and reward structure.

Question 8

Can I start for free?

Accepted Answer

Yes. Fedele offers a free Starter plan for up to 5 customers — perfect for testing the waters. When you are ready to scale, the Pro plan unlocks unlimited customers, map visibility, and priority support.

Question 9

How do reward costs work in the calculation?

Accepted Answer

When a customer redeems a reward, the actual cost to you is based on your gross margin, not the retail price. For example, if you give away a coffee worth 4 euros but your margin is 70%, the reward only costs you 1.20 euros. The calculator uses this margin-adjusted cost for accuracy.

Question 10

What if my ROI is low?

Accepted Answer

A low ROI usually means your reward is too generous relative to the spend required, or your margins are thin. Try increasing the points needed for a reward, reducing the reward value, or choosing a reward that costs you less (like a discount instead of a free product). Even a modest ROI is worth it if it keeps customers coming back instead of going to a competitor.

Question 11

How can I maximize my loyalty program ROI?

Accepted Answer

Focus on three levers: first, set a reward threshold that requires 5-8 visits to redeem — this keeps customers engaged without giving away too much. Second, choose rewards with high perceived value but low cost to you, like a free drink or a percentage discount. Third, actively promote the program — the more customers enrolled, the stronger the loyalty lift. Consistency and visibility are what drive results.

Loyalty Program ROI Calculator

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