M8 APPSSeparate the selling price from the reward cost.
A drink sold for USD 3 might cost USD 1 in ingredients. Evaluate the incremental cost of delivering the reward: ingredients, packaging and other costs that increase for that unit. That is different from the menu price.
An example with six paid purchases.
| Illustrative assumption | Value |
|---|---|
| Purchase amount before tax | USD 3 |
| Paid purchases needed for the reward | 6 |
| Revenue from those purchases | USD 18 |
| Incremental reward cost | USD 1 |
| Reward cost / accumulated revenue | 5.56% |
| Contribution before reward, assuming 60% | USD 10.80 |
| Contribution after reward | USD 9.80 |
Try your scenario.
These figures are assumptions. Enter the amount before tax and your contribution margin before the reward. The result is not net profit or evidence that the card will create new sales.
Illustrative calculation. Excludes fixed costs and does not demonstrate additional sales caused by the card.
Check what the calculation leaves out.
- Include the reward’s cost even though customers do not pay for it.
- Consider payment fees, waste and variable costs not already included in your margin.
- Add service subscriptions and other fixed costs when reviewing total business results.
- Review actual repeat purchases and redemptions; do not assume the program caused every visit.
Put a clear rule on your card.
Once a scenario makes sense for your business, configure the minimum purchase, target and reward in D Card. Save the draft, review the public page and publish the conditions you will apply. Adjust using observed results without silently changing promises made to customers.
What changes if some customers return?
Enter how many new customers arrive each month, the share who do not return and the share of those customers you expect to recover. Choose each recovered customer’s additional purchases over 12 months. The average purchase amount excludes tax.
This model combines 12 months of acquisition and follows each recovered customer for 12 months. Customers arrive in different months, so the total is an annualized scenario, not cash collected in the first calendar year. Rates and visits are your assumptions, not D Card results.
Annualized scenario with 12 months of follow-up per recovered customer. Not actual revenue, recorded losses or a recovery guarantee.
Review potential spending and costs separately.
Customers who do not return = new customers per month × 12 × non-return rate. Estimated recovered customers = that group × recovery rate. Potential revenue = recovered customers × additional purchases over 12 months × average purchase amount. Customer counts remain fractional estimates until amounts are calculated.
Potential spending for the whole group assumes 100% recovery; it is not a recorded loss. An optional margin applies to potential revenue to estimate contribution. Deduct rewards, service fees and other costs not already included before evaluating profit. Compare the scenario with observed purchases and returns; this calculation does not show that a card caused those visits.
Turn your rules into a card.
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