Loyalty Audit...Leads to Lifetime Value Achievement!

For most retailers who have some form of recognition and reward program in place daily, weekly and monthly reporting on program performance is enough to know whether the program is driving business metrics successfully. Success for most program owners is defined by pre-established measures, or KPIs (key performance indicators). A quarterly audit with your program partners is also highly recommended to assess how well they are performing in support of mutually defined program objectives. Use this time to identify areas for improvement, true innovation through test/learn, and determine what the near-term priorities will be for the program in order to meet/exceed commitments to the enterprise in terms of delivering incremental return from most valued customers.

To help facilitate that dialogue, the following is provided as an initial guide. I will provide "more" in the days to come. This is certainly not exhaustive, but if you haven’t performed a formal audit since you launched your program, nor had working sessions with your service providers – agency, strategic advisors, technology platform, data management or CRM platform teams – you owe it to yourself to do so now – to get the biggest lift over the 2018 Holiday season and then hit the ground running for 2019!

Program KPI Status - you must have answers to the following - from your CRM/ Loyalty team:

 Enrollment as a % of foot traffic

 Enrollment as a % of conversion – paid transactions

 Active members past 3, 6, 9 and 12 months

 Member lifetime value – increasing, decreasing

 Member value profile – how are the deciles performing

 Incremental sales lift from promotions, from the program overall – meeting or exceeding plan

 Reward redemption rate and the characteristics of the reward transaction

 Any changes you’ve noticed in your e-mail delivery and open rates?