If you remember, all the way back in part one of this loyalty series, we began with foundations of measurement and understanding your customer’s behavior. We identified the importance of clear and concise KPI’s and the dividends they will provide throughout the lifecycle of the program.
Now it’s time to harness that foundation. As we started with measurement, we end with measuring your customer and loyalty achievements for incremental gains.
We began with a consumer transaction analysis and peripheral engagement KPI’s specific to your brand and it all comes back to those analyses yet again. That’s why understanding your customer is paramount. It enables you to show performance and incrementality at granular levels throughout your loyalty segments.
Consistency is King
When it comes to analysis, consistency is key to gaining insights. We are in this for the long-haul and you’ll be tempted to change KPI’s as you learn and launch the program. Don’t give in!
The more you change the murkier it gets. Identify intervals for modifications to your KPI’s, but only after you’ve acquired insights to make informed decisions. Change causes churn, insofar as it agitates the timeframes necessary to read KPI’s as the sum of their parts.
One of the first things an experienced agency will do is outline a cadence for reporting, analysis and insights. That cadence is up to the brand based on initiatives and the level of depth desired. While reporting can often be and granular, remember that loyalty is about lifecycle. Baesman recommends analyzing your consumer’s path to purchase for high value customers:
What’s the average path to conversion?
How long are consumers in the consideration set?
What’s their next cycle once they’ve converted?
Those answers will help guide you through reporting frequency and what level of granularity to look for at each stage.
Here’s an example Baesman often utilizes.
For many, there are four cycles of reporting that take place: Enrollment, Engagement, Incrementality, and Lifecycle. Each of those cycles happens at a different stage in the timeline based on what metrics and insights can be developed.
For instance, enrollment is the first metric since early on, it’s the only mechanism that provides enough data to read goals and objectives. The program hasn’t been around long enough to measure incrementality or engagement.
Likewise, further down the timeline, Baesman measures the whole lifecycle to provide a full view of customer interactions. This includes redemptions, breakage, engagement, incrementality and many reads on member versus non-member analytics.
Insights are integrated with timing. It’s hard to make well-executed decisions on a limited data-set, too granular data, or for too small a duration. Deductions should be read over a longer period with a targeted data-set. Insights begin to develop through refining theories, whittling away the periphery and the variables until you can understand how any actions might impact the program.
Test, test test! While your insights might be correct, there’s too much turbidity to know for sure how consumers will react. Test your theories through A/B testing and validate insights.
When the brand is ready to roll-out a new idea, communication is paramount. Don’t just drop a new feature and expect consumers to figure it out. Guide them through the changes to limit disruption and enable the highest chance of success for your initiatives.
Rinse & Repeat
No matter what level of depth, frequency or change you’re hoping to make to your program, the key is to find a model that works well and stick with it. The goal is not just loyalty, but showing the impacts loyalty has for your brand. Showing those results requires consistency and standardization, so keep it simple if you must, but keep it consistent for measuring success.