# Incentive Playbook (Small-Goods DTC)

## Incentive types and when to use

| Type            | Goal                | Typical offer                    | Channel      | Frequency   |
|-----------------|--------------------|-----------------------------------|--------------|-------------|
| Welcome         | First purchase     | 10% off or 50–100 points         | Email, site   | Once        |
| Post first order| Second purchase    | “Earn X points” or next-order %   | Email, SMS    | Once        |
| Threshold       | AOV, repeat        | Free ship at $X; bonus points    | Cart, checkout| Every order |
| Tier reward     | Engagement, LTV    | Exclusive reward at tier         | Email, account| On tier up  |
| Referral        | Acquisition, retention | Give $X, get $X or points   | Email, account| Ongoing    |
| Birthday        | Reactivation, goodwill | Small % off or free item      | Email, SMS    | Once/year   |
| Win-back        | Reactivation       | “We miss you” + % off            | Email, SMS    | 1–2 per year|

## Welcome flow (new sign-up → first order)

- **Immediate**: Email with offer (e.g. 10% off first order) and clear CTA.
- **24h**: Reminder if no purchase; same or simplified offer.
- **7d**: Last-chance or “here’s what you’ll love” + offer. Then move to standard flow.

## Post–first-purchase flow

- **Order confirmation**: “You earned X points; redeem at Y points for $Z off.”
- **+3–7 days**: “You’re X points from your first reward” or “Come back before [date] for Y.”
- **+14–30 days**: Replenishment or new-arrival nudge; optional small incentive (e.g. free ship on next order).

## Win-back (lapsed)

- **Definition**: No order in 60–90 days (adjust by category).
- **Offer**: One strong offer (e.g. 15–20% off or free ship) with clear expiry (e.g. 7 days).
- **Cadence**: 1–2 emails/SMS; then pause for 3–6 months before re-trying.
- **Segment**: Exclude recent purchasers and already-discounted.

## Referral

- **Mechanics**: Referrer gets $X or Y points when referee signs up or makes first order; referee gets $X or Y points. Use unique link or code.
- **Caps**: Max referrals per customer per year if needed; fraud checks (different payment, address).
- **Copy**: “Give $10, get $10” (or points equivalent); one click to share.

## Calendar (example)

- **Always on**: Points earn/redeem, tier benefits, threshold free ship.
- **Monthly**: Birthday offers (by birth month); optional “member double points” day.
- **Quarterly**: Tier review; win-back wave for lapsed segment.
- **Campaigns**: Launch, seasonal sale—decide if points/rewards stack or not and state clearly.