Will a loyalty program actually pay for itself? Do the math in 3 minutes.
Tell us about your order volume and expected program performance
Projects 3-year ROI by modeling customer behavior changes from loyalty programs - including repeat purchase uplift, retention improvements, and referral growth - against custom-build and SaaS subscription costs. Benchmarks are drawn from 1Raft's loyalty platform implementations.
For businesses with 10,000+ active customers, custom loyalty platforms typically outperform SaaS tools within 18–24 months. The break-even point depends on your average order value and purchase frequency - higher-frequency businesses see faster payback.
Well-designed programs increase repeat purchase rates by 15–25% and average order value by 10–15%. The compounding effect matters most: a 20% increase in retention rate can boost lifetime value by 40–60% depending on your margin structure.
Use SaaS (Smile.io, LoyaltyLion) if you need basic points-and-rewards with minimal customization. Build custom when you need deep integration with your existing systems, complex earning rules, multi-brand programs, or unique redemption experiences that differentiate your brand.