Le KPIs of loyalty programs and their monitoring

We have seen so far what we think is the ideal mechanism, the perfect mechanism to be able to work on true loyalty and interaction with our customers, our consumers and, more generally, with all those who buy from us.
As a reminder, our valuable tool is not just for owners of stores with fidelity cards but is also absolutely fine for anyone who has an e-commerce site and can track their customers' purchases.

Table of Contents

Let us now look at what represent the KPIs of loyalty program success, that is, how to measure the success of a loyalty program:

like any action plan, a customer retention program represents a strategic plan and as such should be measured;

there must therefore be metrics, KPIs (Key Performances Indicators, i.e., precisely indicators of key results) through which we can take measures of what we have done and what we still need to do, and also still be able to analyze the right, wrong, or improvable parts with respect to our strategy.

If we look at the table below, we find a list of things, which are nothing more than metrics, that are right to go and measure within a loyalty program.


At this point, it is right and proper to go to analyze the first tangible comparison data, which is the average receipt of those who buy through fidelity card, also seen as increase/decrease, differential/total, and difference between average spending of those who do and do not buy through fidelity card.

We then come to see what the effects of loyalty programs are on total (incremental) sales, and then go on to measure the increase in the incidence of sales of customers subjected to loyalty programs on total sales.

Finally, we come to the increase in the average margin, both on the total and among customers who are either subject to the loyalty programs or not.

Then there is another metric that we would have liked to write about but cannot do so, at least in this circle, because it is our consumer’s liking index, which, in our opinion, is the number 1 metric, the most important key metric, which trumps any other value anyway.

Being agreeable to our customers, being perceived as good distributors, good sellers of products or services, represents the most important thing that we should definitely aim for.

This, as we said earlier, is not a metric that we can go and graphically represent a priori, nor can we measure it so easily; rather, the level of customer satisfaction generally can and should be measured (according to our model), through accurate, consistent and repeated satisfaction surveys over time.

The customer satisfaction index is a parameter that must always and necessarily be closely monitored because only if we really talk and dialogue with each and every one of our customers, can we really get to the heart of each one of them to subsequently reach the mind.


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