What are the most important metrics in a loyalty program?

If you are a manager, executive, or owner of your own business, you may eventually find yourself needing to develop a loyalty program for your customers to facilitate their retention,reduce acquisition costs or stimulate repurchase of your product or service. 

There is a consensus that for a loyalty program to be successful you need to collect data and metrics to develop indicators that will quantify and qualify your customer's engagement and satisfaction with your brand.  

But where should we start?

First of all, you need to understand what loyalty is: check out our ebook and article for more information.

The first step in winning over your customers is getting to know them and showing them that your brand is concerned with the quality of its service and with a positive customer experience. Therefore, data is indispensable to evaluate customer loyalty to the brand.

How to use surveys to assess customer loyalty?

Surveys are indicated tools to evaluate loyalty based on the following metrics: Satisfaction, Trust, Respect, Perception of Value and Quality.

To get a relevant amount of responses, your company may choose to provide benefits to customers who answer the survey. Whether it is a discount or a free gift, any quick win can be a great way to give back. One possibility is to include this process within the loyalty program itself. 

Satisfaction

Recording information about how the customer is feeling at the moment of purchase is a key metric for understanding and improving touchpoints.
Getting this sentiment overview can be accomplished through forms or questionnaires.  

This metric is related to the NPS (Net Promoter Score), or example, where the customers answer how much they would recommend your brand to friends.

Trust

Ensuring the client's trust is essential to prevent unnecessary worries. Getting credibility helps in the processes of certifications, ratings and feedback from others.

If your brand seeks to improve this contact and can gather this information, you will be able to get key answers to develop strategies about what brand image it is conveying and how it is perceived by customers. 

Respect

This metric is closely tied to the trust that you convey, how you are perceived, and the solution you provide. It is important to convey this impression so that your brand can be well recognised by the public.

Create a follow-up survey to find out if your brand recognition is associated with a perception that is positive or better than your competitors'.

1. What was your impression of our brand?

2. Did you continue to be our customer because of this same perception?

3. Do you believe that this perception is a determining factor in your decision to choose our brand over competitors?

With this information collected, it will be possible to determine strategies for the development of campaigns that reinforce, encourage or modify the perceptions generated.

Perception of Value

The perception of value is associated with the customer's opinion about the value of the product. In this way, we can assess whether the price of the product or service is reflected in the value that the customer is actually willing to pay. Some commonly asked questions that support this metric are:

1. If a competitor starts selling the same product in a more convenient location or for a lower price, are you likely to change brands?
2. Do the customer loyalty program rewards help you to maintain your brand preference?

Quality perception

Quality perception is the customer's opinion about a certain product or service, and in our case, the loyalty program itself.

To understand the positioning of your audience, it is important to ask the following questions:

1. How do you rate the level of reliability of our program?  
2. How do you rate the quality of our loyalty program?

All these metrics can be related to key indicators and used to analyze the level of your loyalty program and how it is affecting sales.

About Indico

Indico is a Brazilian Martech company with an experience that has reached more than 150 million customers in 9 countries, that develops solutions to combine Loyalty and Innovation creating unique connections and transforming relationships between brands and consumers.

Contact us and get to know the Indico way of revolutionizing the relationship with the customer.