- A clear, unbiased tool for tracking your loyalty program performance year over year and after major program revisions
- A way to quantify the impact of your loyalty program
- Key metrics to answer your CEO’s most pressing questions
- Comparisons to see how your program stacks up against others
Why should you track loyalty program performance?
You most likely spent a considerable amount of time, money and emotion creating and implementing your loyalty program. You may have had to work hard convincing certain members of your C-suite or Board that it could bring value to your organization. And eventually, they’re going to want proof that their faith in you is paying off. That makes measuring your loyalty program’s effectiveness vitally important.
CCG’s Loyalty Program Effectiveness Appraisal helps you provide the proof you seek — or the insights you need to fix a program that isn’t measuring up as you predicted.
This objective, third-party tool provides you with a customized report that answers critical questions like these:
- How does my program’s performance compare to other retailers?
- Are our loyalty members really engaged in our program?
- Is the program really driving incremental spending — or are we just rewarding customers who would have shopped with us anyway?
- What loyalty benefits are actually driving customer spend — and which ones aren’t?
How do you evaluate loyalty program effectiveness?
CCG’s Effectiveness Appraisal is based on data we’ve collected over more than three decades working with more than 75 of the top retailers in North America. It takes less than one hour of your time to provide initial input. Then, in two weeks, you’ll receive your customized report, scoring your loyalty program performance on five key metrics that reflect characteristics of an effective loyalty program.
Active Participation Quotient
APQ tracks loyalty program participation, measuring your customers’ engagement in your loyalty program based on their understanding of how the program works and their level of participation. A perfect APQ is 100. The retail norm is 48.
Motivation to Spend
This metric rates your overall program and its top three benefits on the ability they have to motivate your customers to consolidate spend in your category.
Program Net Promoter Score
This number tracks member satisfaction and advocacy based on the likelihood of members to recommend your program.
Customer Data View
This metric provides a way to measure the ultimate objective of most retail loyalty initiatives today: the degree to which your data collection efforts are providing a 360-degree view of your customers.
Overall Program Rating
The overall program rating benchmarks your program as Challenged, Middle of the Pack or Best in Class and also provides insights to help you improve your loyalty program performance.
Your Partner in Loyalty Program Success
Measuring loyalty program effectiveness is essential to ensuring that your program is performing optimally. Our Loyalty Program Effectiveness Appraisal is a convenient way to check on your program today and, by periodically repeating the evaluation, to ensure it keeps working into the future.
Get the insights you need to make your loyalty program a success — and convince the doubters among your C-suite and Board that they made a wise choice supporting it. Contact us today to start your appraisal!
Related Skills and Services
- Statistical Loyalty Program OptimizationTM
Selecting member benefits is essential to loyalty program development. Our Statistical Loyalty Program Optimization provides you with objective, data-based recommendations for an optimal loyalty program and benefits mix for each of your key audiences. We put a focus on operational efficiency and ROI, and ensure you have a business case you can take to your CEO and CFO. Learn more.
- Strategic Loyalty Program Development and Design
At CCG, we have an unparalleled level of experience in developing retail loyalty programs for top retailers across North America. Each program we design is customized to best meet our clients’ objectives and maximize their return on investment. We aren’t locked into any particular approach. Rather, we are innovators in developing non-traditional, cost-effective solutions that deliver an outstanding ROI.
- Loyalty Program Implementation and Management
Implementation services include loyalty program management, reporting and analytics, creative development and deployment of customer communications. Most importantly, we provide senior strategic oversight to ensure that your program stays on track and remains relevant with your customers.
- System Selection and Integration Assistance
CCG has a deep knowledge of loyalty and CRM technology solutions. We are not a solutions seller. Instead, we provide you with an objective view of what will work to best support your loyalty strategy. Our point of differentiation is that we define the strategy first, then identify tools (including any currently in place) to support the strategy. We then serve as loyalty subject matter experts to support IT during implementation, offering assistance such as blueprinting, functional requirements and use case development.
- Loyalty Program Communications Audit
We provide an objective, third-party review of customer-facing communications. This allows us to evaluate continuity and effectiveness of messaging, design, channel mix and other elements impacting customer engagement with and awareness of your loyalty program.