Figuring out the financial price of loyalty factors or rewards necessitates a easy calculation: divide the money worth of the redeemed merchandise or service by the variety of factors required for that redemption. For instance, if a lodge keep valued at $100 could be obtained with 10,000 factors, the worth of every level is $0.01, or one cent. This calculation supplies a benchmark for evaluating the potential return on funding from participation in a rewards program.
Understanding the per-point worth presents a number of benefits. It permits people to make knowledgeable choices about whether or not to make use of factors for a selected redemption or save them for doubtlessly higher-value alternatives. Moreover, it facilitates a direct comparability between completely different rewards packages, enabling shoppers to determine people who provide essentially the most favorable returns. Traditionally, any such calculation empowers shoppers to completely leverage the advantages related to loyalty packages.
