To maximize ROI for your loyalty program, continuously analyze KPIs, set targets, and track engagement.
In the ongoing exploration of loyalty programs, this article focuses on the next step in the Customer Connection Cycle: Analyze it!
Step 6 in the Customer Connection Cycle: Analyze
In the last several “Lessons in Loyalty” articles we explored creating and running a successful loyalty program. We have recently covered rewards in these articles, specifically subscription programs.
First, we looked into loyalty program foundations with the 3 E’s (having easy, empowering, and engaging programs) and the 3 C’s (clear, compelling, and consistent promotions and communications). Then we talked about solidifying the customer relationship by giving an overview of the Customer Connection Cycle, covering recruiting members into your loyalty program, member engagement strategies, promoting the program, and finally, in-store excellence. We also covered rewards with stamps, points, and subscription reward programs.
Rewards can come in several currencies such as stamps, points, or paid subscription programs.
Today, we will talk about measurement to ensure a successful program
To garner the best ROI for your loyalty program, you must constantly measure, analyze, and react to keep it profitable and effective.
To effectively analyze your loyalty program, it’s essential to assess its performance through various key performance indicators (KPIs).
10 Tips for Rewarding Subscription Program Success
1 |
Measure, Monitor, and Learn Conduct daily, weekly, monthly, quarterly, and annual reporting. Share key program indicators with your management team frequently. |
2 |
Monitor Membership Track new member recruitment at the store level every 30 days and monitor the total member base to ensure a significant percentage of your customers are enrolled. |
3 |
Define and Monitor Engagement Check the percentage of active users each quarter and analyze the average number of app sessions in the last ninety days. |
4 |
NPS Analysis Capture and monitor your net promoter score (NPS) across demographics and segments to ensure customer satisfaction and loyalty. This means you’ll need to survey users frequently. |
5 |
Loyalty Share Set targets for the percentage of transactions from known customers and aim to increase this figure over time. What percentage of total transactions come from members versus anonymous customers? This number should grow over time. Set expectations around realistic and stretch targets to set internally for the first quarter, first year, etc. |
6 |
Compare Basket Spend by Segment Understand the average basket size for members versus non-members to gauge potential growth opportunities. |
7 |
Monitor Recency and Frequency Measure the average number of transactions by active users in the last ninety days. |
8 |
Build Profile Data Continuously Request important customer data like birthday, possibly gender, language, and address at signup or after an introductory period. Use this information to create targeted campaigns, analyze their effectiveness, and share with the management team for overall customer satisfaction analysis. But, only ask questions that will be used, and don’t go overboard collecting personal information. |
9 |
Build Store Preferences Encourage members to identify their local store to offer relevant local promotions. |
10 |
A/B Testing Use A/B testing to analyze campaign variables and design effective campaigns that resonate with your members. |
Examples of Effective Analysis
Enmarket in Georgia proudly offers customers monthly subscription car washing options with its state-of-the-art Marketwash mobile app. The goal is clear: to provide customers with a frictionless and contactless car care solution, setting enmarket apart as a leader among the top convenience retailers.
Enmarket, asks members simple NPS satisfaction questions. Because this is a new car wash program, they want to ensure they provide value as they continue to expand the experience.
The Customer Connection Cycle Explained
This informative video explains more about the Customer Connection Cycle in this edition of the Liquid Barcodes Convenience Retail Loyalty Playbook video series.
Achieve Loyalty Excellence
Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.
Developing a distinctive loyalty program is essential in the dynamic landscape of convenience retail, where challenges abound. The Liquid Barcodes Convenience Retail Loyalty Playbook is your hands-on tool to make this happen.
We developed the Liquid Barcodes Customer Connection Cycle framework to illustrate how to strategically engage customers through various channels, converting them into loyal program participants. The framework uses proven loyalty mechanisms to ensure customers return sooner, becoming habitual purchasers.
Recognizing the significance of a strong customer base in driving revenue, the key principle of the Liquid Barcodes Customer Connection Cycle is simplicity, ensuring your program is easy to understand, join, earn, and redeem. It’s not just a proprietary approach; it’s our shared strategy to elevate your loyalty program and drive your business to success.
Click here to download the first few chapters within the Liquid Barcodes Convenience Loyalty Playbook.
Liquid Barcodes is a leading global loyalty and digital marketing technology partner specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with the “customer connection cycle” process to engage, promote, and reward customers’ activities in realtime across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry partners across several global markets, by offering unique subscription and mobile payment programs, machine learning, personalization, gamification, loyalty, and other capabilities.
Learn more about Liquid Barcodes at LiquidBarcodes.com.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Future of Convenience podcast, produced by Global Convenience Store Focus media group.
