Financial Model

The Business Case
for Impact Rewards

A rigorous 3-year financial model showing how loyalty investment drives measurable revenue growth and mission impact.

Year 1

ROI: 233%
Members
50,000
Incremental Revenue
$5.2M
Program Cost
$1.6M
Net Benefit
$3.6M

Year 2

ROI: 400%
Members
90,000
Incremental Revenue
$10.8M
Program Cost
$2.2M
Net Benefit
$8.6M

Year 3

ROI: 567%
Members
130,000
Incremental Revenue
$17.6M
Program Cost
$2.6M
Net Benefit
$14.9M

Revenue Drivers by Year

Five distinct revenue levers, each growing as the program matures.

Revenue DriverYear 1Year 2Year 3
Increased Visit Frequency$1200k$2.8M$4.5M
Higher Basket Size$900k$2.1M$3.6M
Donor→Shopper Conversion$600k$1.4M$2.4M
Lapsed Customer Win-Back$300k$0.7M$1.2M
New Member Acquisition$200k$1.8M$5.8M
Total Incremental Revenue$3.2M$8.8M$17.6M

Year 1 Cost Breakdown ($1.56M)

Technology (POS, App, Platform)
35%$546k
Reward Liability (Points)
30%$468k
Marketing & Signage
20%$312k
Staff Training
10%$156k
Operations & Support
5%$78k

Net Benefit Growth (3-Year)

Year 1Year 2Year 3$0M$4M$8M$12M$16M

Key Model Assumptions

$18.50
Average Transaction Value
10 pts
Points per $1 Spent
500 pts
Points per Donation Visit
38%
Redemption Rate (Year 1)
$9.36
Reward Liability per Member/Year
+18%
Visit Frequency Lift (Members)
+12%
Basket Size Lift (Members)
15% of donors
Donor→Shopper Conversion
8% of lapsed
Lapsed Win-Back Rate
$4.20/yr
Technology Cost per Member
$312,000
Marketing Cost (Year 1)
Month 7
Breakeven Timeline

Beyond Financial ROI: Mission Impact

Every dollar of program revenue funds Goodwill's core mission.

+18M lbs
Additional Goods Diverted
Year 1 estimate from increased donations
+2,400
Additional People Served
Job training & employment services
28,400
Donor Habit Formation
Active donors in the program
3.4×
Mission Revenue Multiplier
Every $1 program cost → $3.40 mission revenue