Break-even
Break-even is the point at which the revenue considered covers the associated costs. For a loyalty programme, the relevant measure is incremental contribution, not simply all revenue from participating customers.
Published
What it means for your shop
Start with the decision you are evaluating and the period you want to look at. For a new loyalty programme, include its additional fixed costs, such as the software fee and a fair share of the setup work. Variable costs come with additional sales and with the rewards you hand out.
Subtract the associated variable costs from incremental revenue. What remains contributes towards fixed costs. Count reward costs exactly once: either within the contribution or separately on the cost side. Only sales the programme adds count as incremental revenue; sales that would have happened anyway do not. In a forecast, that share is an estimate you set yourself.
Reading a simple calculation
If the positive incremental contribution per sale is constant, divide the additional fixed costs by that amount. The result is the number of additional sales you need to cover costs; round up to whole sales. A divisor of zero or below means the sales threshold has no positive value, so look at the contribution per sale first.
Run the calculation a second time with more cautious assumptions. Different baskets and rewards change the contribution per sale, and two scenarios give you a realistic range to plan with.
At Treubar
The pricing page shows the plan costs for your chosen billing period, which gives you a clear fixed cost to work with. Use your actual costs for the reward; the reward selection guide helps you define what customers collect towards. Compare stamp counts with your sales figures to see the incremental effect.