A fundamental question in managing a loyalty program is "How should I evaluate my program's success?" This is a question that deserves far more attention than this short commentary, but understanding how to measure results is the first step toward judging whether the program is fulfilling your objectives.
At Triton Loyalty, we look at dozens of performance metrics to compare and evaluate performance. This is one of the ways we are able to assemble best practices to help clients engage their audience. There are many factors that affect response, but overall success comes down to four key measurements represented in the Engagement Funnel above.
1) Audience. This is your total reach. How many consumers you contact in any way. For electronic media, this is your cume number. For newspapers, it's circulation. This is your potential. Though it's obviously incorrect to assume that all prospects are equal, every person that experiences your brand is a candidate to become a member. So our first evaluation is to identify total potential.
2) Total Members. Of the total audience, how many are you able to recruit into a relationship with your brand? This is measured by the total number of registrations. Track weekly and monthly growth in membership, compare this to the total audience (#1) as a percentage.
3) Active Members. Of your total membership, what percentage are actively participating? We measure activity by "all members who participate in at least one points event in the past 28 day period". This metric evaluates success in motivating members to take action. Low or declining participation levels is a red flag that your program need attention.
4) High Frequency Members. Of active members, how often do they respond? Successful programs create "sticky" content and promotions that cause members to return several times a week, and some several times per day. Measuring your appointment activity, and participation in interactive features (surveys, trivia, etc) are useful in tracking frequency.
Tracking statistics in your program is easy through the Administration Reporting tools. We encourage you to measure performance daily if possible, but at least 2-3 times per week. Look for trends that reveal opportunity to grow engagement, and share the statistics and performance with everyone responsible for success.
As with any funnel, the greater the input at each level, the greater the output. Analyzing member response will reveal weaknesses and opportunities that can help you succeed in managing your loyalty initiative. You'll learn which features are most popular, and which need to be re-invented or dropped.
The Triton Loyalty team is always available to help assess and advise to help grow your member relationships.
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