Today’s savviest companies have found smart solutions for gathering market research and consumer information through the use of incentives. And while the number of companies creating incentives programs is growing steadily, participation rates amongst consumers sits at only 50 percent
How long has it been since you started your program? Are you doing your due diligence and checking to see how it’s performing? We’re here to help check your stats with key incentive program KPIs.
Replay Gift Card Goals
Your team set out with a gameplan. Now, that shiny new incentives program is moving fast. It’s probably time to go back and revisit your strategy.
Let’s begin with your audience profile. In general people respond to an incentive: Our study shows 66% of consumers feel the incentive matched their effort and that their information is worth the reward. So are you meeting your consumers where they spend: is it digital rewards or do they prefer physical cards? You should know. Also, find the actual locations they are redeeming. Do your consumers spend their rewards on Christmas gifts, or are they used for vacations? Offer more rewards in their preferred redeeming locations.
What else was written on the newsprint from that first brainstorm session? Maybe you wanted revenue increases and repeat business. Run the numbers to find out if these goals are being met.
Compile the Metrics
Time to get into the nitty-gritty of judging these loyalty programs with three KPIs:
- Usage rates
- Have you maintained reliable records of your customers that signed up for the program, the amount of rewards they are earning on a quarterly basis, and where and when they cash in their ‘gifts?’
- Measure with an active engagement rate. Simply divide the number of consumers participating in the incentive program by your overall number of consumers. Amazon reports a 93% engagement rate because they don’t just have books to sell, they have everything.
- Redemptions versus total sales
- A rate of 15% redemption of rewards is a good rate, according to Smile.io. Determine your redemption rate by dividing your gifts redeemed by total gifts awarded.
- Costs.
- If the expenses exceed that revenue, you will need to make a change to your approach — and fast. Examples of these costs are production of the physical cards, perhaps the expense of hiring a digital contractor or app developer. Reign those costs in and let those profits grow faster.
We’re always here to help you create the best customer reward options for your brand. Talk to a rewards expert today to learn more about our incentives opportunities.