There is another fact that, in our opinion, is striking and that can make us understand how what we have said, is unfortunately the bitter truth and, on the other hand, further validates all our work carried out to date, that is, what are the measures of effectiveness of the loyalty or loyalty strategy, according to the companies that were interviewed.
As we can deduce from this graph, positioned only in eighth place (we repeat 8th place) we see that the answer was the ROI or the Return Of Investment.
Eighth position for the 44% of companies means that, only 4 out of 10 operators, have as a key value to keep under close surveillance, the return on investment or ROI, the measure that makes you really understand the effectiveness or otherwise of a strategy .
Instead, other responses are very generic or too generic and measure individual values such as the "response rate to campaigns", "aggregate sales measures", "sales statistics" website", The" frequency of visits to the site or our store e-Commerce or the "customer satisfaction"; that is, we are talking about things that it is right and sacrosanct to measure, which must not, however, be too generic but which must instead relate, in an extremely specific way, with our loyalty strategies.
Therefore, having the ability to measure the return on investment, having made a clear program, which really interacts with its users or customers, which involves them with constant and continuous initiatives, in order to lead them, more or less, to return to the our point of sale, in our store in eCommerce, to carry out actions with added value for us.
If we instead go to measure extremely generic things, such as those we have just mentioned, such as the frequency of visits to the site, the response rate to campaigns, etc. … We could be misled.
We may have set up a strategy that has an important response rate to the promotional campaign but which, not being fixed on concrete elements (products, which and how many, etc.) it pays off the investment in the campaign and, perhaps, I instead have a very high response and a repetition or increase in the frequency of important visits.
The most important things therefore are: increase the budgets available to loyalty programs (because we see how they are the only way out from the competition of large marketplaces), and these budgets must be absolutely measured on the main thing, which is represented by the return on 'investment.
We must therefore set KPIs, monitoring indices, which will have to become our daily bread, so that they can make us understand whether what we are doing, the efforts we are putting in place, are in line or not with the set objectives and with the strategy outlined a priori.