Attracting new customers is expensive. Over the last five years, organic customer acquisition costs have risen close to 50%, with paid acquisition costs rising even more. For eCommerce brands especially, driving existing customer engagement and growth is imperative to maintaining a healthy business across every channel — and a loyalty program is a key to that sustained success.
Whether you’re evaluating how to launch a new loyalty program or enhancing how your current program drives ROI, there are many factors to consider to ensure your program is driving revenue. Among point-earning campaigns, personalized discounts, member perks, tech stack integrations, and more, the most important factor to consider — and the most often misunderstood — is loyalty performance measurement.
Where (and why) brands go wrong when analyzing loyalty performance
Historically, brands that want to understand the value of their loyalty program focus on basic metrics, like points earned, points …