We are often asked the question, “How is my loyalty program doing?” While there is no single metric that we can look at to answer this question, there are several things we can look at, which often change as the program matures.
A loyalty program’s success depends on many different performance indicators – enrollments, registration rate, engagement, visits, frequency, redemptions, spend, etc — all of which are easy to view with Paytronix reports. The Web Registration Summary and RFM Store Frequency are two of my personal favorites!
One measure that we have found important to monitor is what we call Loyalty Penetration – calculated as the percentage of checks that are loyalty checks.
Determining Loyalty Penetration is done by meshing POS check volume (information that is not stored in the Paytronix system unless you’re using Data Insights) with Loyalty Activity. The Paytronix database captures information for loyalty transactions, but to calculate loyalty penetration you need to have insight into non-loyalty check information.
So what is a good level of Loyalty Penetration, and why does it matter? […]