You know that a good CRM is vital to the success of measuring and improving upon your marketing campaign. Each type of campaign will have its own goals and metrics specific to tracking its ROI or ROO. Loyalty card programs are no different. They also live and die by how effectively they are tracked – and the methods and metrics chosen to do so.
Here are some of the most important things to look out for when planning how you’ll measure the success of your loyalty card program.
Measure the right metrics for your program
Measuring metrics should, at this point, be second nature. Selecting items from the list below will stand you in excellent stead when it comes to evaluating your loyalty card program. This list is non-exhaustive, leaving room for you to build in your own metrics.
Activation rate: This number indicates the number of new members joining your loyalty program. Ideally, even older programs will experience steady growth from year to year.
Attrition rate: also known as a customer churn. This measures the rate at which customers leave a loyalty program.
Breakage rate: The amount of offered money or rewards that go unclaimed by customers. There are laws governing what can be done with breakage. Some is to be expected, but a rate of more than 50% indicates issues with your program.
Effort Score: A measure of how much effort a customer has to put in to complete a transaction or otherwise get what they want. Generally, a lower score removes impediments between customers and the decision to make a purchase.
Net Promoter: The likeliness that a customer is to recommend the service to others
Redemption: This refers to the percentage of customers who do redeem rewards from your loyalty program.
Retention rate: Percentage of customers that are likely to do business with the same company again.
Choose the right software
There’s a massive variety of loyalty-specific software out there designed to streamline your tracking process – meaning that there’s no need to build on your current CRM. A quick search can reveal programs targeted at the smallest businesses up to the very largest. If you use eCommerce plugins and software (such as the popular WooCommerce or Magento), be sure to search for software that’s compatible with your current setup.
If you’re willing to trade money for time, there are even free and open source loyalty software programs out there. Before implementing an open source solution, it would be wise to have (or know someone with) the technical know-how to get hands-on with the software first.
However you choose to go about tracking the success of your loyalty card program, we hope that the above has established an appropriate launch pad for your business. If you’re still stuck on the drawing board for your program, then we’ve got some tips on making it stand out to your customers.