Loyalty Discount Calculator
Frequent buyers were frequent already.
Incremental annual value
$8.17
$41.30 on the raw comparison
The raw gap says $41.30 and the incremental figure says $8.17. Frequent buyers join loyalty schemes; the scheme does not create all of that frequency, and assuming it does justifies discounts that lose money.
How the Loyalty Discount Calculator works
Members buy more often partly because frequent buyers join loyalty schemes. Attributing the whole frequency gap to the discount is the standard error, and it justifies discounts that quietly lose money on the customers you would have kept anyway.
Also known as: member discount calculator · repeat customer discount · loyalty pricing calculator
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
Is a permanent member discount worth it?
Only if it genuinely increases frequency. A discount to customers who already buy every month is a price cut with a loyalty label on it.
How do I measure the real effect?
Compare cohorts before and after joining, or hold out a group from the offer. The raw member-versus-non-member comparison is dominated by self-selection.
What works better than a discount?
Early access, free shipping, better service, and anything that costs you less than its perceived value. Discounts are the most expensive loyalty currency available.
Should the discount rise with tenure?
It creates a reason to stay and it also gives most to the customers least likely to leave. Tying it to spend rather than tenure targets it better.