The Convenience Retail Loyalty Playbook has been written to help retailers using our loyalty platform to get the best possible results from their loyalty program. Summarizing chapter 11, this video explains our top ten tips to effectively analysing your convenience retail loyalty program.
Interested in reading more? Check out the loyalty playbook’s chapters below:
Chapter 1: Introduction
Chapter 7: In-Store Excellence
Chapter 2: Customer Connection Cycle
Chapter 8: Rewarding With Stamps
Chapter 9: Rewarding With Points
Chapter 4: Recruiting Members
Chapter 10: Success with Subscriptions
Chapter 5: Engaging Your Members
Chapter 11: How to Effectively Analyse Your Loyalty Program
Chapter 6: Powerful Promotions
Chapter 12: Operating Your Loyalty Program Successfully
We love to share our knowledge! Explore the full Convenience Retail Loyalty Playbook by downloading it here
Effectively Analyse Your Loyalty Program
Given the level of time, money and attention that your loyalty programme will ‘enjoy’ both internally and externally, it’s critical to constantly assess how it’s performing. Our extensive experience has given us a clear idea of what KPI’s to monitor from a commercial perspective, to ensure your team are proud of the project and its performance over time.
Top Ten Tips to Effectively Analyse Your Loyalty Programme
- Measure, Monitor and Learn. Daily, weekly, monthly, quarterly and annually. There is no such thing as too much reporting – of course by the right people, to the right people, and for the right reason! We recommend at a minimum that key programme indicators are shared with your management team each week.
- Closely Monitor Membership: Keep a close eye on how many new members are being recruited at store level every 30 days, and how their total member base is tracking. You can’t have an effective loyalty programme until you have recruited a sizeable base that represents a significant percentage of your customers.
- Define and Monitor Engagement: In our industry, we recommend monitoring what percentage of your user base has been active in the most recent quarter. It is therefore useful to analyse and report the average number of active app sessions in the last ninety days.
- NPS Analysis: We recommend that you capture and monitor your “net promoter score” across demographic (age and gender) and by segments such as students. We know that companies that suffer from low “net promoter” scores are likely to lose market share as soon as customers find attractive alternatives, so make sure to closely analyse your scores and ensure they are representative of your customer base too.
Are your customers happy to promote your store? If not, why not?
5. Loyalty Share: It’s important to set targets for the percentage of your transactions that should come from “known customers” – so simply, what percentage of total transactions come from members versus anonymous customers. Clearly this figure should grow over time, and our customer excellence team can help set expectations around realistic, and stretch, targets to set internally for the first quarter, first year etc.
6. Compare Basket Spend by Segment: It’s insightful for your senior management team to have an understanding of the average basket size (spend) for your members versus non-members. While the inevitably higher values can’t be fully attributed to your programme, it does provide a great understanding of the potential growth available for your stores with the existing customers you serve, as well as new customers you may attract.
7. Monitor the Recency and Frequency of your Members. This comes from measuring the average number of transactions by active users in the last ninety day period.
Data is the new oil – so make sure you capture and analyse it.
8. Build Profile Data Continuously: Make sure to measure what percentage of your members have shared their gender and date of birth – giving you the data you need to create powerful campaigns. While the quickest way to connect with customers is simply to capture their contact number, it’s also important to ensure that you continually build your insights and understanding of who your customers are, and what they need.
9. Build Store Preferences: Similar to the incredible power of the progressive profiling of your customers, it’s important to continually ask your members with identify their local store so you can target them with local offers. Another useful metric is to measure the share of members that are also subscribers.
10. Consistently Run A/B Tests. One of the most powerful tools in the digital marketers toolkit, our A/B testing functionality should be leveraged as a part of every campaign. By isolating campaign variables and analysing the results and which performs better, you can quickly learn how to design winning campaigns that really resonate with your members.
Checklist to Effectively Analyse Your Loyalty Programme
Liquid Barcodes is a leading global loyalty and digital marketing technology company specialising in the convenience store and foodservice industries. Our proprietary cloud-based technology platform allow retailers to create and manage their digital marketing campaigns with a proprietary process we call the “customer connection cycle’ to engage, promote and reward customers activities in real-time across digital and media channels.
How we do it:
We have developed the most advanced loyalty and digital marketing technology platform specifically for convenience store and foodservice retailers globally.
Retailers use our self-service dashboard to create and manage loyalty driven marketing campaigns that increase purchases with their existing customers, as well as effectively target and acquire new customers through partners or paid media channels.
One core component of live loyalty is gamification. We have gamified branding, loyalty and promotions. We believe this approach is essential in order to get customers’ attention and ultimately truly engage them with repeatable actions thereby winning their loyalty.
Check out some of our exciting/proven results here:
Chief Content Officer, Liquid Barcodes and Loyalty Industry Podcaster
With over twenty-five years marketing experience, I specialise in loyalty marketing consulting, managing consumer loyalty propositions, strategy and operations. In addition to working with Liquid Barcodes, my clients have included Telefonica O2 Priority, Three Mobile, Electric Ireland, Allied Irish Bank and The Entertainer Group (UAE), as well as Avios – the global points currency for some of the world’s top airlines. I am also a former judge for the Loyalty Magazine Awards and host of the “Let’s Talk Loyalty” podcast.