As a program manager, you already know it is important to track your program metrics to measure engagement, profitability and efficiency. But wading through all the possible metrics can be confusing. To help alleviate this confusion, we have compiled a cheat sheet that summarizes the measurements that are most helpful to understand and track.
Below is a highlight of some of the metrics covered in the cheat sheet. The cheat sheet explains how to calculate the metric, what it is and what it tells you.
Financial Health Insights
- Breakage calculates unused points and, therefore, the degree to which you have outstanding financial liability for your program. Less breakage means customers are using points and engaging with your program, but it will also increase the accounting liability you have to accrue for.
Cost per Point determines the value of points – as an asset or a liability.
Customer Engagement Insights
Redemption Rate tracks members’ engagement based on volume of points redeemed
Net Promoter Score tells you whether your customers like you enough to tell their friends about you and essentially act as word of mouth promoters on your behalf
Retention Rate gauges how loyal your customers are to your program or brand and how valuable they find it
When viewed together, the measurements outlined in the cheat sheet provide a solid picture of the customer engagement, value and efficiency of your reward program. While there are several metrics in which program owners can explore to get a pulse on their program, we have summarized the key loyalty program metrics to help streamline the findings.
Download the Loyalty Program Metrics Cheat Sheet and start optimizing your rewards program today.