After you’ve made the sale, the focus next moves to engaging and retaining customers. You want to build a longer-term relationship with them that results in additional sales or actions. It’s essential to know your data and the success metrics for loyalty. Here are the key metrics that you want to track.
Customer Retention Rate
This metric measures the percentage of customers who continue to purchase from your brand over a specific period. It shows the effectiveness of your loyalty initiatives in retaining customers.
Repeat Purchase Rate
Monitoring the percentage of customers who make more than one purchase can provide insights into the loyalty and satisfaction level among your customer base. They are happy enough with your brand experience to want to come back again and repeat it.
Loyal Programme Enrolment
Monitoring the number of customers who enrol in your loyalty programme or opt in to your loyalty-related offers can indicate how effective your campaign is in incentivising loyalty. Subsequently, ensure that the experience calibre of the sales process continues to ensure that customers stay with you.
Engagement with loyalty-focused content
Tracking engagement metrics such as likes and comments on loyalty-related content on your social media platforms can indicate ongoing interest and engagement amongst your post-conversion audience. Can you keep the momentum going as your content changes to focus on a longer-term relationship from short-term campaigns?
Redemption Rate
For loyalty programme campaigns that involve rewards or incentives, tracking the percentage of customers who redeem their rewards can indicate the effectiveness of your programme in driving repeat purchases.
Net Promoter Score (NPS)
NPS measures the likelihood of customers recommending your brand to others. It provides insights into overall customer satisfaction and loyalty. Would your customers recommend your brand to their friends and family?
Customer Feedback and Reviews
Monitoring customer feedback, reviews and testimonials on social media platforms can provide valuable insights into your loyal customers’ sentiment and satisfaction levels. Definitely take a look at your Google and social media reviews and sites such as Trustpilot to see what your customers are saying about you. Be sure to respond positively and promptly to any negative feedback to mitigate the impact of it.
Customer Lifetime Value (CLV)
Calculating the CLV of loyal customers can help quantify the long-term value they bring to your business and guide decisions on investment in loyalty initiatives. As your business may rely on repeat business, be sure to measure its value as part of your tracking.
Referral Programme Performance
If your loyalty campaign includes a referral program, tracking the number of referrals generated and the resulting conversions can indicate the effectiveness of your programme in leveraging existing customer relationships to acquire new customers. Be sure to capture your sale’s goodwill and leverage it for future conversions.
Churn rate
While a loyalty campaign focuses on retaining customers, tracking the churn rate (the rate at which customers stop engaging with your brand) can help identify areas for improvement in your loyalty initiatives.
By tracking these metrics, you can assess the effectiveness of your loyalty campaign in building stronger relationships with existing customers, driving repeat business, and ultimately increasing customer lifetime value. So, ensure you know your data and the success metrics for loyalty.
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