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I feel that reward points sometimes actually loooks like an imposed shave on payouts. If each sale generates, say, $1.00 worth of points, and say only 30% of all points are redeemed, then payouts per sale could in fact be $3 higher and be a net nil on the bottom line for the programs.
However, I understand that handing out $3 of point IN THEORY and only redeeming $1 of it nets the program $2 to the bottom line per sale, all while looking great for handing out "rewards" and at the same time not starting a PPS price war.
Reward me with better payouts and a lower shave on sales, and I will be a happy man.
Alex
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