When it comes to having a loyalty program, value is an important term to keep in mind. You want to make sure that your loyalty program is not only of value to your customers, but also to yourself and your business. Taking a step back and evaluating your loyalty program annually is a great way to outline what a successful program means to you and what you can do to achieve that success.
Below are three key performance indicators we view as crucial goals to set for your loyalty program.
1. Level of Engagement
While it's important to be aware of how many of your customers are actually members of your loyalty program, it's even more important to be able to gauge how many of your loyalty members are engaged and active. In order to truly know your audience, you must first know who your audience is.
What percentage of your loyalty members stopped in your store and made a loyalty transaction last year? In the past six months? One month?
Once you know the percentage of your members that are most engaged, set a goal for your program. What percent do you want that to be in a year? What can you do to get to that number?
The level of engagement of your members is, after all, the core of a loyalty program: loyalty.
2. Promotion Performance
Offering specials promotions to your loyalty members is a great way to increase the level of engagement of your members. But you should also be conscious of how your promotions are performing. Is there one promotion that does the best among your members? One that doesn't perform to your liking? A certain day or time that your promotions perform the best?
Your overall promotional performance is a strong indicator of what your members like and dislike. Understanding what works well and being promotionally aware is the first step in improving your promotions and gaining more member interest.
3. Transactional Awareness
It goes without saying that the number of loyalty member transactions and spend is a big data point - but are you using that information to the fullest?
It's easy to look at how many transactions your loyalty members had over the course of a year, but what's the average basket spend per transaction? Are you happy with that amount? If not, what do you view as success?
An increase in basket spend can indicate that your members are buying more and more each time they come in to your store - not only are they filling up with gas and getting a coffee for the road, but they could also be buying a donut, a sandwich for work, a gallon of milk on their way home, etc. Overall, it's a great statistic to pair with your promotional performance - how many of your members are going above and beyond when they shop at your stop?
How Can We Help?
At Tecmark, we view these performance indicators as opportunities to improve and increase your chances of success. We also believe in setting goals for your loyalty program and actively monitoring those goals monthly and/or quarterly to ensure your program is on the right track.
See how Tecmark can help increase the value of your loyalty program. We'll work with you to make your loyalty program the best it can be.