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Mobile Loyalty Programs: How do you measure success?

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CONNECT 2019: The Mobile CX Summit will feature a breakout session titled “Is Your Loyalty Program Working for You?” We asked the panelists for that session to answer this question:

What key performance indicators (KPI’s) do you use to gauge the success of your mobile loyalty programs?

Will Hanrahan
Digital Marketing Manager

We are looking at changes within these metrics:

  • Participation Rate: Percentage of users who are participating in the loyalty program comparative to total number of POS transactions.
  • Spend Lift: Increase in check size of loyalty guests when compared to anonymous.
  • Average Visits: Total Number of loyalty checkins divided by total number of unique guests in the selected time duration

We are also regularly looking at the following metrics quarterly:

  • App Downloads
  • Signups
  • Unique Guests
  • Loyalty Sales
  • Loyalty Checkins
  • Loyalty Avg. Check
  • Loyalty Reviews
  • Avg. Rating of Reviews

Rachel Layton
VP of Marketing + Growth
Taziki’s Mediterranean Cafe

While there is a myriad of metrics to gauge the success of a mobile loyalty program, there are three key KPIs that must be analyzed. Enrollment rate, frequency and spend. The ability to drive a healthy loyalty program rests on the ability to enroll guests and keep them engaged. This must be done by effectively communicating the value proposition to the consumers considering the loyalty program fatigue that exists today, as well as crew members that may be tasked with enrolling the consumers. A successful member count will also fuel a substantial sample size for mining consumer data (the real capital of a loyalty program) which should be used to improve the loyalty program and inform universal business decisions.

The loyalty program should also serve to encourage a behavioral shift to drive incremental frequency and spend. A baseline should be measured in order to gauge the increase in these two metrics. Ideally, this can be tracked down to the individual level in order to identify consumer behavior before joining the program and after joining the program. Metrics demonstrating the behavioral differences between members and non-members should also be tracked as the delta between the two serves as a strong case for the value of the program.

Experiencing success in these metrics serve as the recipe for a strong and motivating mobile loyalty program.

Monica Minford
Senior Director of Digital Marketing
HuHot Mongolian Grill

We’re looking at download rates to ensure our restaurants are communicating the benefits of the HuHot Rewards app, and then measuring incremental sales from the personalized campaigns we push out to app users.

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