You can't evaluate loyalty platforms by subscription fees alone—that's a fraction of the true cost. The critical question is: what's the three-year total cost of ownership, including discount dependency, custom app and agency costs, and ongoing operational overhead?
Start with the economic fundamentals. A rewards program should not give something for nothing—the value created must exceed the cost of value delivered. That means understanding the links between what you give customers and what they get back in changed behavior. If a platform requires 8-10% in discounts to function, you need to ask whether those discounts are driving incremental frequency or just subsidizing visits you would have captured anyway. Compare that to platforms designed for precision targeting, where discount rates run closer to 2-4%.
Next, factor in the cost of building and maintaining a custom app, plus ongoing agency fees if you're outsourcing marketing execution. A "cheaper" platform that forces you to pay for custom development and agency support may cost more over three years than an all-in-one solution with a higher platform fee. Finally, consider the hidden cost of manual work—how many hours go into building segments, launching campaigns, and managing disconnected systems?
The lowest subscription fee often comes with the highest total cost. Evaluate platforms based on how they help you reward desirable behavior efficiently, target attractive customer segments, and create long-term value for your most valuable guests—not how cheaply they can enroll members.