It is also useful to conduct surveys india mobile number database free to evaluate the effectiveness of the loyalty program and understand which aspects of it the audience likes and which they do not. why do you need a loyalty program Evaluation of the effectiveness of the loyalty program There are several common methods for evaluating the effectiveness of loyalty programs. We recommend using different methods to obtain more objective and accurate results. LTV (customer lifetime value) Customer lifetime value is one of the most important indicators that allows you to determine the potential income from one customer during their “life cycle”. To calculate LTV, use the following formula: LTV = revenue from a customer – cost of attracting and retaining them The higher the LTV, the better for the business.
If the costs of attracting an audience exceed potential revenue, then your approach is not working properly and requires comprehensive optimization. Description of the loyalty program Customer activity level and bonus points turnover User engagement is the ratio of your program participants to the total number of customers. You can calculate the level of activity using the following formula: Activity level = (number of program participants ÷ total number of clients) × 100% If you have a lot of clients, but the number of program participants is small, it means that either it does not offer comfortable conditions, or clients simply do not know about it. Customer Attrition Rate Customer churn rate is an important metric for businesses because it shows how many people have stopped using your services or buying your products.
