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Lindsay MacDonald
Product Content Writer @ Yotpo
February 24th, 2020

Loyalty Performance Measurement is Broken. We’re Fixing It.

Yotpo’s Loyalty & Referrals solution now provides the most comprehensive and forward-thinking analytics for eCommerce brands.

Table Of Contents

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 spent, referrals made, average amount spent, and more. While this data is important in evaluating engagement, it doesn’t provide brands with the information that really matters: whether or not their loyalty program is creating changes in their customers’ purchasing decisions

Instead, brands should be asking: Does this loyalty program actually work? How much revenue is the program generating? And how is it driving higher lifetime value from each of my customer segments?

But, analyzing the impact of your brand’s loyalty program really means quantifying incremental shifts in customer intent — and without the right tools, reporting on that human data can be challenging. Why? Let’s break it down. 

Typically, a loyalty program member’s journey consists of making a purchase, earning points for that purchase, returning to redeem those points for a discount, and then returning again to make another purchase. It seems simple, but here’s the catch: How much of the second purchase was influenced by their loyalty program engagement, and how much was because they simply wanted to purchase again

Now, we’re giving you the tools to start answering that challenging question. We’re thrilled to share our new comprehensive loyalty performance dashboards, designed to give our customers clear and actionable insight into how their loyalty and referral programs are really generating ROI.

Moving toward smarter loyalty performance measurement

Yotpo’s loyalty and referrals solution includes four new, comprehensive methods of studying loyalty program performance and measuring ROI. With access to these new dashboards, your brand can make better business decisions that incorporate loyalty and referrals more intelligently — and ultimately drive lifetime value.

Here are the new dashboards, plus a few examples of insights you might derive from them:

Loyalty Performance Dashboard

The Loyalty Performance Dashboard evaluates changes in customer behavior within the program, giving brands real and actionable insights into how those loyalty-driven changes are driving revenue.

Use Case: Your active customers are making repeat purchases less frequently, so you might run a double points campaign to re-engage those shoppers.

VIP Tiers Dashboard

The VIP Tiers Dashboard provides the first detailed look into how many customers are in each VIP tier — and analyzes the differences in behavior and engagement between tiers. 

Use Case: Your customers might be reaching the first VIP tier, but they’re rarely making the follow-up purchase that will take them to the second tier. You might reward customers who’ve just earned the first tier with a bonus reward to encourage their next purchase. 

Referrals Performance Dashboard

The Referrals Performance Dashboard displays comprehensive analytics on how the referral program brings in revenue for your brand by studying both the behavior of newly referred customers and existing customers who successfully refer the brand to their friends, providing real insight into potential areas of improvement.

Use Case: Your referral acquisition rate has been falling over time,  so you might refresh the rewards options available to referring customers to keep them excited to share your brand with more friends.

ROI Dashboard

The ROI Dashboard compiles key health metrics to help brands easily understand the top-line revenue impact from both loyalty and referral programs.

Use Case: Your program participation rate and overall resulting engagement is low, so you might send an email to those customers who’ve earned points but haven’t yet made any redemptions.  

How to start using our new dashboards

Login to your Loyalty & Referrals account now to get started with the new dashboards. For more insights into how you can best optimize your program using this additional data, reach out to your Client Success Manager.

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