How We Launched the HeyTaco Taco Shop from Scratch - Survivor’s Guide

We’ve (obviously) been using HeyTaco since 2016, but this is the first time we considered adding rewards. Starting the Taco Shop from scratch, especially after so many years of using HeyTaco, might feel like a big task, but if you break it down into a few steps, it’s easy to get started. I wrote this guide while setting up our own Taco Shop to hopefully help you get started on your own Taco Shop journey.

Steps I Followed in Creating the Taco Shop

1. Look at the State of Your Taco Economy Right Now

The key metric for the Taco Shop is people’s redeemable taco balances because those are the tacos people have available to use for rewards. If you’ve been using HeyTaco for a while, like us, people will most likely have large redeemable taco balances. Reviewing everyone’s balances will help you decide how to price rewards in the Taco Shop or whether it’s best to reset those balances.

Currently, our team’s redeemable balances range from 42 to 1,291 redeemable tacos—a big gap! Some team members have been with us from the start, while others joined recently and haven’t had as many opportunities to earn tacos.

Given this large discrepancy and the fact that some have over 1,000 redeemable tacos, I think it’s best to reset our redeemable balances. Otherwise, I’d need to price rewards really high to prevent those with the largest balances from purchasing too many things at once. High prices can discourage team members with lower balances, especially since our daily taco limit is set at the default 5, making it a long journey to earn enough tacos for high-priced rewards.

Decision: Reset Redeemable Taco Balances

Some Notes:

  • Be sure to inform the team that resetting redeemable taco balances won’t affect their leaderboard balances, and share the reason behind the reset (i.e., to launch the Taco Shop).
  • Since we’ve used HeyTaco for a long time, we needed the reset. If you’re adding rewards after only a couple of months, you might not need to reset taco balances, as people likely haven’t accumulated as many tacos.

2. Set a Budget for Rewards

Since we’ve never used rewards before, I’ll start with a small budget and only launch a handful of rewards. Not everyone may get a reward or the same amount of rewards, and that’s okay. My goal is to launch a few items the team will enjoy, see how long it takes for them to redeem them, and adjust as needed. I’ll set the budget monthly or until it’s depleted, whichever comes first. Afterward, I’ll establish a new budget and might introduce new rewards depending on the team’s response.

First Month’s Budget: $500. This is what we feel comfortable spending right now, and I’ll adjust it as needed.

Reward Types: I’ll offer a mix of individual and team rewards. For individual rewards, I’m avoiding gift cards since our team isn’t excited about them, and we want to keep gratitude separate from cash. It’s our personal preference; your team might feel differently.

3. Choose the Initial Set of Rewards

Here are the rewards I decided to start with, along with their quantities and costs, all within our budget.

Some Notes:

  • While I typically recommend a 4:1 taco-to-dollar exchange rate, I used different rates for each reward since our team is small, and I wanted them to be easily redeemable. This is based on my knowledge of our team’s engagement and size, and I’m open to adjusting prices as needed.
  • To protect our budget, I limited the quantity of each reward, preventing excessive purchases. This scarcity encourages team members to spend tacos on things they really want rather than hoard them. For example, we only have one of our popular button-downs available, so the team will be excited to work toward it!
  • Choosing fun rewards is challenging! Since we’re not using gift cards, I wanted rewards to feel fun and HeyTaco-esque. Finding the right balance was an art more than a science!

4. Share the Taco Shop Launch with Your Team

Schedule some time or share information about the Taco Shop with your team asynchronously. The goal is to (a) explain how the Taco Shop came to be, (b) inform people how to earn redeemable tacos (and let them know about the reset), and (c) build excitement around the new items.

Since we’re a smaller team, I scheduled time to introduce the rewards. I created a PowerPoint with images and stories behind each reward.

 

5. Watch, Learn, and Adjust as You Go

Like any new product launch, you won’t know exactly how your customers (in this case, your team) will react. Here are some things to monitor with your first set of rewards:

  • Are people excited about the rewards and talking about them? Check out your channel communications, listen for insights in team meetings, and ask people directly.
  • How long does it take for people to redeem rewards? If it takes too long, the rewards may be too pricey or unappealing. If they’re redeemed too quickly, they might be too cheap, putting your budget at risk.
  • Who is redeeming them? If the same people keep redeeming rewards, consider new options to appeal to others. Ask for feedback and adjust accordingly.

Some Parting Thoughts…

This may seem like a lot of work initially, but it’s worth the effort to learn what works before streamlining or automating it. Starting involves trial and error, but once you find a good formula, think about ways to make the process easier.

Running the Taco Shop can be a fun team activity! Consider rotating Taco Shop ownership or forming a cross-functional team for input so that admins aren’t solely responsible. The Taco Shop’s purpose is to celebrate and add an extra layer of fun to your culture of gratitude!

If you need reward ideas or find any your team loves, let me know. I’d love to add them to our list of successful reward ideas!

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