Hey guys. Sometime ago, when our new website was launched, I tried something new: added a few bucks to the price of each item, and offered free postage within Australia. I wasn't sure that would work. Adding just $1 to $3 to each item, when postage cost a minimum of $7.20, was a bit of a risk. But, considering that most people buy more than one item, I was hoping that the average sale would be enough to cover postage costs. Well, it did. After trying this system for 3 month, all postage costs were covered. Most orders of 1 or 2 items fall short, but all orders of 3 or more items make up for the difference. The next step now is to start with the reward points program. I have setup a system now, but haven't advertised yet. To start, I'm offering 3 points per dollar spent. The value of a point is around 3% of the gross amount spent. For example, if you sent $200, you earn 600 points. With 500 points you can buy a $5 voucher. I know it’s not much, but after discounting GST, the website fees (yes, they charge me a percentage of every sale) and postage cost, the reward program comes between 10% to 34% of the profit amount, which is quite high for me. There is also 250 bonus points when someone signs up, and 500 bonus points if you refer a friend and your friend makes a first purchase. I'm starting with the ration of 3 points per dollar to see how it goes. If everything works fine, I should be able to increase it to around 5 points ($100 = $5 voucher). What do you guys think about this method? Am I starting it right? What should I call the reward points? I put "XCiting Points" for now. Too tacky? Your opinion would be greatly appreciate. Cheers Omar
