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Loyalty Metrics

Loyalty Program Metrics: Enrollment Score

Program Metrics: How to Measure Program Impact?

In each program (either Loyalty and/or CX Program), you’d want to score what your program performance is. Ideally, you relate performance to your goals and how well you achieve those. There are also some generic KPI’s for program’s that can inspire you to monitor and optimize performance. In a short series of articles, VEMT will explain some of the most valuable KPI’s you can use to continuously improve results.

The first episode is about one of the first steps in each program: do customer enroll into the program? Do they convert to members?

This is usually measured with:

The Enrollment Score

There are two version of this score, and they are both valuable. The Overall Enrollment Score (OES) is simple measured by dividing the active members by the total number of customers, delivering insight in how many of your customers have become members.

Although this definitely provides insight, a fast growing new business might score lower on this than a big enterprise due to the fact that many customers have not had many experiences with the business yet, while it might take some time for them to consider the values of a membership.

To adjust for this factor, another KPI provides a more focused insight in the attractiveness of the program: the New Customer Enrollment Score (NCES). It measures how many customers have become a member within x months after their first purchase. Choose ‘x’ wisely; for retail we generally recommend somewhere between 3 and 6 months.

Not all business can calculate these KPI’s: if you simply don’t know how many customers you have, or when a customer makes its first purchase, then – even though these KPI’s seem simple to calculate – you do not have the data to establish these reliably. Actually, sometimes a program’s main goal is to provide insight in this type of data because the current (offline) customers are all anonymous.

In these cases, you can use other KPI’s, on which you can read in next episodes of this series.

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