One of the biggest conundrums facing any brand when it comes to Loyalty Program is how to measure the success and effectiveness of it. We at Channelplay follow a process defined by Key Performance Indicators (KPIs). It is important to identify appropriate KPIs for each program and constantly measure them and attempt to improve them. After all, as the old adage in Business – “What gets measured, gets done.”
In this post we dive deep into various KPIs that can be used to measure the effectiveness of a loyalty program.
- Business Performance KPIs
While it is easy to demand Sales lift as a KPI for a loyalty program, it is often too broad and cannot be actioned upon by the program management team. Instead of that by breaking down the loyalty program to various stages and measuring the number of participants in each stage would lead to actionable and constructive insights. By focusing on improving the number of participants who have registered, who are transacting and who are actively participating focused KPIs can be set for the management team which can lead to overall improvement and thereby drive sales. Few examples are Registration ratio, Transaction ratio, Active participation ratio, etc.
- Tactical performance KPIs
Most of the loyalty programs have a layer of short-term performance either through tactical scheme or assigned targets. Communication of these parameters would drive the achievement of short-term objectives. Few examples are Tactical scheme performance, Fence Sitter campaign performance, etc
- Reward Management KPIs
Reward Management is one of the key value additions provided by any Loyalty Program Management agency. The benefits to the partners are all in the form of various rewards and it is important to measure the operational parameters around it so that the experience of partners with the loyalty program remains positive. Few examples are Reward Delivery timelines, Experiential Reward feedback, etc.
- Helpdesk Management KPIs
Loyalty Program helpdesks are often seen as an extension of brand sales teams and the partners use them to reach out to the brand for many issues. It is important to give a positive experience at each step of interaction with the loyalty program and hence these KPIs become crucial in achieving that. Few examples are Helpdesk Satisfaction Score, First Response SLA, Resolution SLA, etc.
- Timeline Adherence KPIs
Purely from a task management perspective, timeline adherence of regular deliverables is the most time and effort consuming among all the various aspects of loyalty program management. Agreeing on timelines with the client and meeting them without fail should be the most important objective that any program management team is chasing. Few examples are Communication timeliness, Reporting timeliness, etc.
- Holistic satisfaction KPIs
Apart from all these KPIs it is important to measure the satisfaction of various stakeholders through in-depth surveys and interviews on a periodic basis. This will open up conversations between the stakeholders and the management team which will generate insights and areas of improvement for the program as a whole. Few examples are Participant satisfaction score, Sales team satisfaction score, etc.
If you want us to help you run your loyalty programs in an efficient way and deliver on these KPIs, please leave your details in the form in the link below and help us get in touch with you.