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Basic methods for evaluating the effectiveness of a loyalty program

Posted: Sat Dec 21, 2024 3:52 am
by mehadihasan123456
Launching a pilot version of the program . This method is best suited for large retail chains. For example, in this way they can test the planned program, even in different variations, using individual stores as an example, each of which has its own control group.
Use of cohort analysis. In this case, the effectiveness of the program is assessed by studying the consumer behavior of categories (cohorts) of clients, most often distinguished by the time of joining the promotion.


Use of look-alike analysis. This method compares program participants and non-participants, who represent the same segment of the target audience.
Analysis of sales results before and after launch . This is the simplest and most italy whatsapp number objective way to evaluate the effectiveness of a loyalty program. Key sales indicators are taken into account: the number of clients, the number of purchases, the average check size, etc. It is important to exclude other factors that affect the company's activities, such as seasonality or a sharp change in pricing policy.

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NPS – customer loyalty index. The Net Promoter Score (NPS) metric is based on direct customer feedback about their preferred companies and allows predicting future consumer behavior. The basis of this method is a loyalty survey. For example, questions are asked about whether a person will buy this product again, whether he will recommend it to his relatives. Based on the total points scored, respondents are divided into categories: for example, 0-6 points – “critics”, 7-8 – “neutrals”, 9-10 – “promoters”.
Control group . To test the effectiveness of the program, a group of clients is formed, the representatives of which are selected randomly, but so that the entire group represents the target audience in miniature. As in conventional sociological research, broader conclusions can be made based on a representative sample.