Loyalty programs are excellent tools to grow your business. Setting up a brand loyalty program is the first step to increasing customer retention and revenue. After taking the time and effort to set up your program, you’ll want to check in and measure your program’s success.
How do you know if your program is delivering the results you’re looking for? Evaluate the success of your loyalty rewards program by taking a closer look at these areas.
Customer Retention Rate
The main objective when implementing a brand loyalty program is to maintain and grow your reliable customer list. Have you been tracking your customer retention rate since your program began? Checking to see if you’re bringing in repeat business more frequently or if infrequent customers are purchasing your products more often is a good way to measure your program’s success. Compare the sales volume and frequency of your loyalty program participants against customers who aren’t enrolled in your program. You’ll be able to easily notice if your customer retention rate is being positively impacted by your program.
Program Participation Rate
Your loyalty program’s participation rate is one of the most important metrics to measure how effective your program is. You can calculate your program participation rate by taking the number of your program participants divided by your total number of customers. The amount of customers actively participating in your rewards program is a good measure of your program’s success.
Active members redeem rewards frequently and interact with your business more often than they would if there was no incentive. You’ll want to incentivize your customers to participate in your program by offering useful and valuable reward products that can be redeemed for a reasonable amount of points. To increase your program’s participation rate, think about switching up your reward offerings or how many points it takes to redeem a reward.
Reward Redemption Rate
Are some of your reward products being redeemed more frequently than others? Your rewards redemption rate is how frequently your reward offerings are being redeemed by participants. Having a high redemption rate on a particular reward means your customers really enjoy that reward. If certain rewards are never being redeemed, think about offering something new that might be more popular with your program participants.
Do you ask your customers to leave reviews or complete satisfaction surveys? If you are unsure what your loyalty program participants really want out of your program, ask them! This is the easiest way to find their favorite rewards and areas that could be improved. Offering the rewards your customers want the most can increase program participation.
Considering implementing a new rewards program?
SmartBase Solutions Brand Loyalty is a digital loyalty program for manufacturers that is easy to set up and reach customers. Our team can give you more information, help set up your brand loyalty program, and assist with any questions you have. Give us a call at 612.767.9940 or contact us today!
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