How Do You Measure the Success of a Customer Loyalty Program in Your Small Business

May 20
How To Measure Success Of Loyalty Program

How Do You Measure the Success of a Customer Loyalty Program in Your Small Business

According to recent reports, attracting new customers is five to twenty-five times more expensive than retaining current ones.

With that said, it’s obvious that your business needs to focus on building a base of customers who keep coming back. And one of the best ways to do this is to start a customer loyalty program. However, you can’t just implement a program and expect it to work well from day one.

Instead, it’s critical that you measure its success and keep tweaking it until you find the winning formula. But how do you measure the success of a customer loyalty program?

Read on to find out…

Participation Rate

Once you create your customer loyalty program, it’s time to start using it to turn one-time customers into loyal followers of your brand.

One of the most important metrics to keep an eye on here is the participation rate. It shows how many of your customers are actively participating in your customer loyalty program.

Customer participation

And to calculate it, all you need to do is divide the number of your overall customers by the number of your program members.

Obviously, the higher the participation rate is, the better. If you feel like your participation rate isn’t high enough, it means you should look for new ways to introduce your customers to the program. What you can do is invite them through email and share information about your program on social media. Giving every current customer a brochure that explains how your customer loyalty program works is also a fantastic idea.


Happy customers are always likely to come back.

The only problem is, you can’t know how satisfied a customer is with your loyalty program unless you ask them.

Collecting this info is extremely important as it shows how effective your program is.

Engaging with customers

Moreover, there’s also a chance that a satisfied customer will recommend your business to their friends or family, which only helps your business do better.

So, how do you measure customer advocacy?

One of the best ways to do this is to ask every customer how they found out about your business. Another good idea is to keep an eye on the number of customers who use a prepaid visa card to pay for your product. The reason why this works is that people who give these cards as gifts usually also make suggestions about where to use them.

Customer engagement numbers

Another important thing to keep an eye on is how active are customers who participate in your program.