Know-How Exchange : Other

Hi. When you look at pricing ad space, the question becomes how much is that space worth to your advertisers. Are you segmenting the loyalty card holders to maximize synergy for the advertiser?

Advertising is usually priced on the three R's: reach, repetition, and relevancy. Reach means does your product reach their target market. What matters to an advertiser is not how many people are in your customer pool, but how many fit into their customer pool. Repetition refers to how often a customer sees this ad. In the case of loyalty cards, you can make your case of repetition based on how often customers will come into your establishment. The assumption is that your loyalty program gives them a reason to look at the card each time they come in. Relevancy talks about whether the ad makes sense to the audience. In this case, I don't know if the ad will be big enough to be relevant or whether it will just be a logo.

Anyway, with the three R's in mind, the next step is to "shop" other competing loyalty programs to get an idea of what they are charging for the ads. Then you can create small table with each of the programs you shopped and ad or subtract money from your price based on comparative advantage or disadvantage.

Ok, so you were probably hoping to get a more straight forward answer, but pricing is a complicated discipline.

I hope this helps,

Alexa

You could tie the advertiser into giving the premiums offered with levels of loyalty. The cards themselves aren't that expensive, $500-$2,500

https://dallascardworks.com/business_cards.htm

its just their support system and what the retail customer will receive that will be expensive. If the most the program will offer are discounts that would be considered acceptable coupons just do that; buy punch cards, advertise yourself and when its used up the customer gets something at cost. If the system is simple there really isn't even a need for advertisers.