What is Rewards ROI - Action Value
What is Action Value (Rewards ROI)?
Action Value is a setting within a Reward that lets you assign a dollar amount representing the estimated business value generated each time a customer takes an action with that reward (e.g., redeeming a reward or opening a link). It helps you measure the ROI of your rewards by translating customer interactions into estimated dollar figures. Want to learn how to create a reward? Visit How Rewards Work.
Important: This is an estimate, not actual revenue. Actual sales are tracked in your POS system. Action Value is designed to help you understand the estimated value created by customer engagement through your rewards.
Why Does it Matter?
Action Value exists to help you measure the ROI of your rewards. Rather than only tracking how many rewards were given or used, it helps translate those customer interactions into estimated dollar figures - making it easier to understand the real impact these loyalty efforts have on your business.
How It Works
Every time a customer redeems a reward or opens a link, it counts as one action. The right Action Value to use depends on your reward type:
- Redeem Actions (e.g., discount redeemed in person) - Use your average visit value, meaning the typical amount a customer spends during a visit when they redeem that type of reward.
- Link Actions (e.g., purchasing tickets online) - Factor in your expected conversion rate. For example, if an event ticket purchase is worth $50 and 20% of link opens result in a purchase, your Action Value would be $50 × 0.20 = $10.
You can adjust this over time as you learn more about your customers' behavior. There are no hidden formulas - the math is simple and transparent:
Action Value × Number of Actions = Reward Value
Set Your Default Action Value
Start with your Default Global Rewards Action Value. You can find this under Settings > Organization. The Default Reward Action Value field populates this value in existing rewards and newly created rewards.
- If most of your rewards generate similar value (e.g., $20), set this default to that amount.
- If every reward is unique, set the default to $0.00 and manually assign values at the reward level so no reward carries unintended value.
Once configured, click Set Default Action Value for All Rewards to apply it across your program.
Critical: Using "Set Default Action Value for All Rewards" will override every individual reward value you've already set. Set it once at the start, then make changes at the individual reward level going forward.
How to Add an Action Value
- From the Quick Start Page in your admin dashboard, click Customer Dashboard
- From the Customer Dashboard screen, click on Rewards
- Click on Create
- On the create Rewards popup
- Input the Action Value amount for this Reward (it can be modified at any time)
- Finish creating your Reward and hit Save
- Once you give out this Reward to customers you'll see the Reward Value start to adjust
Key Behaviors to Know
- Retroactive updates - Changing the Action Value will update both past and future reward value calculations, not just going forward.
- Slight delay - After updating, it may take a minute for the new values to reflect across your dashboard.
- Program-level visibility - The aggregated Reward Value appears at the top of the reward detail page, giving you a quick snapshot of total estimated value generated. You will also see these values reflected on the Dashboard on Top Rewards All Time.
Action Value Examples
Say you have a BOGO Drink reward. As a business you understand that when this reward is used, a customer typically spends $20 because they purchase another two drinks plus an appetizer (~2 Draft Beers = $8, 1 Appetizer = $12) before they close out. You'd set the Action Value to $20.00, and since 4 customers have already used it, it's generated $80 in total Reward Value.
Another example, say you offer a Free Range Bucket reward. You know that when a customer comes in to redeem it, they typically spend $20 because they purchase a drink (~ $5) and a medium bucket (~$12). You'd set the Action Value to $17.00. If 10 customers redeem it, your total Reward Value would show $170.00.
Another example, say you offer a spend $50 on golf shop merch get $5 off. You know that when a customer comes in to redeem it, they are going to spend at least $50. You'd set the Action Value to $45.00 or higher if you know they typically spend more when they get this type of reward. If 10 customers redeem it, your total Reward Value would show $450.00.
When Should You Update It?
Revisit individual reward values when things change - for instance, if your prices increase or you want your ROI reporting to reflect a more accurate transaction value. If you want a reward to retain its historical value, create a new reward with the updated Action Value rather than editing the existing one.
How To Edit an Action Value
- From the Quick Start Page in your admin dashboard, click Customer Dashboard
- From the Customer Dashboard screen, click on Rewards
- Click on the Reward you wish to modify the Action Value
- Adjust the Action Value amount for this Reward
- Hit Save
Reminder: Changing the Action Value will update both past and future reward value calculations, not just going forward. If you want to maintain existing historical Rewards Value, create a new reward with the change.
Where to See Rewards Value
Once Action Values are set, the estimated value they generate surfaces throughout your Dashboard in three key places:
- Aggregate Rewards Value - At the top of your Dashboard, the Rewards Value card shows the total estimated value generated across all rewards - reflecting every customer redemption or link click. This rolls up into your overall Rewards Value figure, giving you a high-level view of how much your rewards are contributing.
- Rewards Value by Customer - In the Top Customers table, each customer has a dedicated Rewards Value column showing the estimated value they've generated through reward actions. This is also factored into their Total Value, so you can see the full picture of what each customer relationship to your business is worth.
- Top Rewards - In the Top Rewards table lets you sort by either Used or Reward Value. This makes it easy to identify not just which rewards are popular, but which ones are driving the most estimated business value - which aren't always the same thing.
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