After you’ve made the sale, the focus moves to engaging and retaining customers with a view to building a longer-term relationship that results in additional sales or actions. Here are the key metrics that you want to track for loyalty:
- Customer Retention Rate – this metric measures the percentage of customers who continue to make purchases from your brand over a specific period of time. It indicates the effectiveness of your loyalty initiatives in retaining customers.
- Repeat Purchase Rate – Tracking the percentage of customers who make more than one purchase can provide insights into the level of loyalty and satisfaction 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 the effectiveness of your campaign for incentivising loyalty. Make sure that it continues the experience calibre of the sales process to ensure that customers stay with you.
- Engagement with loyalty-focused content – Tracking metrics such as likes, comments, shares and clicks on loyalty-related content on your social media platforms can indicate the level of ongoing interest and engagement amongst your post-conversion audience. Can you keep the momentum going as your content changes focus to 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 actually redeem their rewards can indicate the effectiveness of your programme in driving repeat purchases.
- Net Promoter Score (NPS) – NPS measures the likelihood of customers to recommend 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 the sentiment and satisfaction levels of your loyal customers. Take a look at your Google 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 to quantify the long-term value that they bring to your business and guide decisions on investment in loyalty initiatives. Your business may rely on repeat business so be sure to measure the value of this 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 program in leveraging existing customer relationships to acquire new customers. Be sure to capture the goodwill that your sale generates and leverage it for future conversions.
- Churn rate – While the focus of a loyalty campaign is 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.
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