Incremental orders
Means the number of additional orders that the loyalty program will bring you over and above the current status. It is the effect of higher conversion, more frequent purchases and referrals.
Incremental sales
How many extra crowns customers spend thanks to the loyalty program. It is calculated simply: incremental orders × average order value.
Rewards cost
The amount that the e-shop pays out to customers monthly in the form of discounts or rewards (points redeemed converted to real discount in CZK).
Net margin contribution
The actual net benefit of the program - i.e., the additional profit after deducting the cost of fees and the Ellity software fee.
Program ROI
"Return on Investment" or return on investment. It shows how many crowns of net profit you make for every £1 of cost (rewards + software). ROI > 1 means profitability.
Break-even discount
The maximum average discount an e-shop can afford to give out without the program being loss-making. If the actual discount stays below this threshold, the program remains profitable.