How much a loyalty program costs, and how much to give without losing money
Updated October 21, 2026
A loyalty program has two costs: the tool and the rewards you give away. The second matters most, and one simple sum keeps it under control: compare what the reward costs you with what the customer spent to earn it.
The two costs
- The tool. A paper card costs the printing and a rubber stamp, but tells you nothing about your customers. A digital one like Apego costs from $18 a month and tells you who comes back and who doesn't.
- The rewards. What they cost you, not what you charge: a coffee you sell for $3 may cost you $0.50.
The sum that matters
Divide what the reward costs you by what the customer spends to earn it. Between 1.5% and 8% is usually right: customers notice it and it pays off for you. Below that the reward takes so long it doesn't motivate; above it you give away more than you need to.
| Business | Spend to earn it | Reward | Costs you | Percentage |
|---|---|---|---|---|
| Coffee shop | 10 coffees × $3 = $30 | A coffee | $0.50 | 1.7% |
| Bakery | 10 visits × $5 = $50 | A loaf and a pastry | $1.50 | 3% |
| Hair salon | 4 visits × $30 = $120 | Wash and blow-dry | $5 | 4.2% |
| Restaurant | 5 meals × $25 = $125 | Dessert or drink | $2 | 1.6% |
| Optician | A $200 pair of glasses | A case | $5 | 2.5% |
Why it pays off
- Rewards are earned with purchases already paid for: you give nothing in advance.
- A customer who comes back one more time a month is worth far more than the cost of a coffee.
- Not every customer redeems every point, so the real cost is usually lower than in the table.
- A specific reward costs less than a discount: you give it at cost, the customer values it at menu price.
What Apego costs
The Basic plan is $18 a month and Pro $49. Both include automatic birthday and comeback emails, with no apps and no lock-in. Try it free for 30 days, no card needed.