The takeaway
A milestone ladder rewards the total number of orders, so a skip delays the next reward but never takes it away. Set three rungs — order three, six and twelve — with each reward worth more than the last, and show how many orders remain to the next one. It complements a streak programme: the streak rewards consistency, the ladder rewards staying.
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An example
Illustrative example: 1,000 BFCM subscribers, retention from Cohort Order, and an assumed 20% still subscribed at order twelve.
| Rung | Reward | Cost per reward | Subscribers who reach it | Total cost |
|---|---|---|---|---|
| Order 3 | Free sample of a new product | $3 | 610 | $1,830 |
| Order 6 | Free shipping on every order from now on | about $5 per order | 380 | $1,900 per cycle |
| Order 12 | Full-size product of their choice | $8 | 200 | $1,600 |
The order-six reward is the most expensive because it recurs. Check it against the contribution of the orders it keeps: at $24 per order after costs, it pays back if it keeps about one subscriber in five who would otherwise leave.
Put it into practice
- Set the rungs. Use order three, six and twelve as a starting point, and move the first rung to the order where your cohort drops most, from Cohort Order.
- Cost each rung. Multiply reward cost by the expected number of subscribers who reach it, as in the example. Recurring rewards are costed per cycle.
- Configure the milestones. Set each order count and its reward. [confirm with product: how milestone rewards are configured and whether a recurring perk such as free shipping can be a reward.]
- Show progress. Put "2 orders to your next reward" in the portal and in renewal reminders. If you also run a Streak Programme, show both in one line so subscribers don't have to track two systems.
- Test each rung. Move a test subscription through the order counts and check each reward is applied once, at the right order.
Watch out for
- Only one reward, far away. A single reward at order twelve is invisible to someone deciding at order two.
- Rungs subscribers can't see. A reward they don't know is coming can't keep them.
- Paying twice for the same order. When a streak and a milestone land on the same order, decide whether both apply before it happens.
Measure the result
Track retention at the order just before and just after each rung for the BFCM cohort, against last year's cohort, and the cost of rewards per subscriber retained. Review after the first rung is reached in January, and again at order six.
Related entries: Streak Programme · Mystery Reward · Gift SKUs