by Michael Greenberg | CMO
The customer’s perception of a loyalty program’s value is crucial for enrollment, ongoing engagement, and long term retention. One important component is the fund rate, both perceived and actual.
Perceived fund rate is the percentage of sales that is promised to customers in the form of rewards. Most credit card programs are at 1%, many retail programs range from 2-5%, with a few programs as high as 10%. This is how most consumers evaluate a program’s value....