Congratulations, you have taken the next step towards improving your customer retention and the overall profitability of your business. You are ready to reap the rewards of your new loyalty program! One issue, how do you measure the success of what you have built, is measurement even important when it comes to loyalty programs? Today we are here to discuss why analytics are the cornerstone to successful loyalty programs, and which metrics your team may choose to look at when analyzing your loyalty program.
Depending on the type of loyalty program you have decided to implement, the metrics you should look at will vary slightly. The main areas that metrics will be able to assist you with when understanding your loyalty program are the profile of your customer, whether repeat purchases are being driven, and the revenue that is being derived from the loyalty offering.
When choosing a loyalty program for your product offering, make sure to ask the provider to walk your team through their analytics dashboard, so that you are able to understand what the service will actually provide you with on the back end. Remember, it is not enough for a loyalty program to just look and sound good, there have to be ways for you to see its performance and to have a simple way to iterate on your ideas after they are live, depending on the live data that you see.
The importance in analytics of loyalty programs lies in the ability for your business to understand the performance of the different decisions your marketing team is making with the loyalty program. For example, if you have implemented a 15% coupon code, which can be redeemed by users who last purchased something over a month ago, it is important to understand whether there is actually revenue coming in from that coupon code that you implemented. Whilst not perfect, this gives a good overall understanding of whether this coupon code delivered on the goal that you had in mind.
You can also take a look at a more long term statistic where you can see the average purchase cycle for customers who do not receive incentive coupon codes versus those customers who do. Analytics allow your business to make data-driven decisions to yield better outcomes, instead of relying on gut feel and heuristics.
If you take Bubblehouse’s loyalty solution, for example, our client dashboard provides a powerful one stop destination for understanding the performance of all of your digital assets. Within our dashboard, our clients can find full suite of analytics tools to aid them with curating the perfect digital asset campaign. The dashboard within Bubblehouse provides an insight into the performance of your loyalty promotions based on the digital assets that were issued to clients. Our system allows you to get an in-depth understanding of the purchase behaviours of your consumers and compare the cohorts that own digital assets with those who do not own digital assets. Some of the key metrics we look at:
Total revenue driven to your company by your issued digital assets
Usage percentage of digital assets
Specific updates on individual digital assets, showing you your top performing assets first
Total number of customers of your business with and without digital assets
The repeat customer rate of individuals with digital assets and without digital assets
Bubblehouse’s loyalty solution focused on collectibles with benefits connects to your company’s internal CRM, email communications, and POS systems to integrate our solution into your customer experience. This will also help populate the Bubblehouse dashboard with all of your existing customer statistics, and we will be able to report any trackable behaviours and how they relate to the collectibles that you have created.
The creation of collectibles is also handled on the very same dashboard where you can upload the artwork for the collectible, set the requirements needed to redeem it, and set the benefits that it unlocks for your customers. We believe in making a simple and easy to use loyalty solution, so our dashboard allows for you to have a very intuitive experience when managing your brand’s collectibles.
If you’d like to see how Bubblehouse’s dashboard works and learn more about our collectibles with benefits, feel free to reach out to us. We’re excited to talk to you!