ROI

What ROI is

The formula is gain minus cost, divided by cost. If a loyalty program costs €50 a month and brings €200 of extra profit, its ROI is 200 minus 50, divided by 50, or 300%. Count the gain as profit, not revenue: €200 of extra sales on a coffee menu is not €200 earned.

How it works for a café, salon or restaurant

• A café compares the cost of free coffees and the program fee with the profit from extra member visits.
• A salon checks whether reminder messages fill gaps in the calendar that would otherwise stay empty.
• A restaurant measures a promotion by the profit on the extra covers it brought, not by the covers alone.

The Rewardly ROI calculator runs the same sum with your own prices and visit numbers.

What to watch

ROI depends on what would have happened anyway. Regulars who came every week before the program are not new gain, so compare members with a period before launch or with similar customers who did not join. Measure over months, not days, because loyalty pays back through repeat visits.