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How is my Loyalty Program Performing?

Key Performance Indicators for Loyalty Programs

Updated over 2 months ago

Overview

Understanding how your loyalty program is performing, is a critical step in ensuring you have a continually successful program and can pivot as needed. Learn about the key metrics to review for ongoing success with your program(s).

What is Loyalty Penetration?

What it is: The ratio of loyalty members' checks to normal checks.

Success range:

Good: 15% - 25%

Better: 25% - 35%

Best: 35%+

How to Measure:

  • Run Monthly for each store or summed over all stores. Run Quarterly for top 10 and bottom 10 stores.

  • Loyalty Check Count: Use the Total Visits per Month (found on the Program Overview Dashboard) and Visits per Store by Month (found on the Visit and Spend Dashboard) tiles as appropriate. (Note: It may be possible to get the total number of loyalty checks from your POS as well).

  • Total Check Count: From POS Report for each store for each month.

    Loyalty penetration = LoyaltyCheckCount over TotalCheckCount

Tips to Improve:

  • Loyalty Penetration is the master measure.

  • If locations are doing a good job on enrollment, the early visits of new enrollments will boost Penetration.

  • If locations are doing a job engaging existing members, they will drive visits and boost Penetration.

What is Loyalty Conversion?

What it is: How well the program is being pushed and how you’re turning guests into loyalty members.

Success range:

Good: Between 6%-10%

Better: 6%

Best: 8%

How to Measure:

  • Run Monthly for each store or summed over all stores. Run Quarterly for top 10 and bottom 10 stores.

  • Enrollment Activations: Use the Activations by Month (found on the Enrollment Detail Dashboard) and Last 3 Months Activations by Store (New Member Detail by State and Store Dashboard, but filter to the last three months) tiles as appropriate.

  • Collect the number of non-loyalty checks from your POS.

    NonLoyaltyChecks=TotalCheckCount-LoyaltyCheckCount

Tips to Improve:

  • Goal Setting that reflects the 6-10% range would be the best first step

What is Registration Rate?

What it is: New members who have registered for loyalty

Success range:

  • Card-based Enrollments, in a blended program*

    • 25thPercentile: 14%

    • 50thPercentile: 21%

    • 75thPercentile: 32%

  • Overall Registration, in a blended program

    • 25thPercentile: 21%

    • 50thPercentile: 35%

    • 75thPercentile: 78%

*Blended Program = a program that has multiple enrollment methods – card, reverse enrollment, app-based


How to Measure:

  • Run Monthly to keep a pulse on new members

  • Registration Rate: Use the Registered New Members tile and use the percentage of Total Number of Activations.

    • Note this will be for the time period selected at the top.


Tips to Improve:

  • Seek to find other ways to boost registration

    • If card based:

      • Put a registration label on the card

      • Make sure cashier remind members each time the card is used

      • Make it easier to register in store

      • Put contests in place

      • Have a membership drive over a limited period of time

What is the Visit and Spend Dashboard?

What it is: Shows how active the loyalty members are on a monthly basis.


How to Measure:

  • Run Monthly for each store or summed over all stores.

  • Monitor which stores are seeing the most visits and collecting the most loyalty spend

  • Track year over year comparisons


Tips to Improve:

  • Again, look at the trends. Are measures progressing as expected?



For further assistance understanding how your loyalty program is performing, please contact your solutions consultant or customer success manager, or email [email protected]

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