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There are plenty of reasons why loyalty programs fail – they’re easy to copy, they’re more expensive than they need to be, they focus on the wrong people.
Loyalty program success should be calculated separately from your growth. To really understand success, you need to know the total number of customers you have, along with the number of those customers who are enrolled in your loyalty program. Once you know both, it’s time to look back at your growth over the past few months. If the percentage of your total customers is growing, but the percentage of growth in your loyalty program isn’t keeping stride, there’s a good chance something in the program isn’t working.
You will have to consider below factors to calculate success.
1) Enrollment
2) Contribution / penetration
3) Redemption and retention
4) Promotion Activation
5) Incremental Business
6) Cost / ROI
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