What minimum spend should you set?

This article is intended to all the venues listed on the WisePass network.

On January 2022, WisePass resumed its service bottle program with Jay Moir at Layla Eatery and Bar in Ho Chi Minh City. There was something different this time though. There was a minimum spend applied if WisePass members wanted to come and redeem a bottle. How did that work?

How does the minimum spend work?

The minimum spend applied was 500,000 VND. It meant that users from WisePass could redeem a bottle at Layla if they spent at least 500,000 VND.

That way, the venue can ensure to generate revenue from WisePass traffic. We implemented the feedback and started to set that minimum spend to make sure our subscribers would get used to that and at the same time protect the venues from some undesirable traffic.

How does it work for buy 1 get 1?

For the venues offering some buy 1 get 1 offer, the same model applies. If the user comes over and scans successfully the buy 1 get 1 free, then the user needs to meet the minimum spend to benefit from the offer.

For example, if the minimum spend is 300,000 VND to enjoy the buy 1 get 1 free, then the total bill needs to be above 300,000 VND to apply the offer. If the total bill is under 300,000 VND the user won’t be able to benefit from the promotion.

The total bill includes the VAT and the service charge.

How does the minimum spend benefit the venue?

The idea came initially from some clubs in 2018 when they experienced a high amount of traffic on Friday and Saturday nights. They requested at that time to set a minimum spend so the WisePass could still be accepted and the revenue from the clubs wouldn’t be affected.

WisePass listened to the feedback as our value proposition is to drive traffic and sales. To be precise, WisePass aims to drive the right amount of traffic and sales so the venue can maximize its sales with the capacity it has.

Can the venue decide to change the minimum spend?

Yes.

Each venue will have a different strategy. Some venues just want to receive as much traffic as possible whereas some venues may just want to optimize the average bill and ensure they generate bills above a certain amount. WisePass will just follow the venue and let it decide what’s best.

We listened to some venues looking to have more control over their offering and may open up our platform so venues can start offering some limited promotions in the future as well. The key idea is that we want to ensure we’re promoting consistently venues the right way.