Measuring the Success of Your Customer Rewards Program

Contrary to what you might have heard, all rewards programs are not created equal. There’s also a lot more to customer loyalty than simply giving out cards and offering discounts.

In fact, loyalty programs should be continually refined in order to stay fresh and relevant to customers. Did you know that there are several things that you can do to measure the effectiveness of your loyalty program? In this post we’ll detail a few of the most straightforward, so you can look into them today.


It’s possible to see how beneficial the customer rewards program is for your business and your customers.

Sign-Up Success Rate

You know how many daily transactions you have at any given time at your business. If you’re just not getting the sign-ups, it means one of two things, either your staff aren’t mentioning your program, or your staff are effectively communicating the value of your program.

Make sure to train employees well on all things to do with your customer rewards program. They will need to know the best ways to convince customers who may be undecided about joining, and they should be able to easily answer frequently asked questions.

Most importantly, cashiers should be trained to always offer every customer a membership for the program. If necessary, you can write a short script for the cashiers to say to each customer that briefly sells the benefits of membership.

The customer rewards program can inspire customers to shop in your store when they may not otherwise do so.

Frequency of Points Redemption

You can also measure how much enthusiasm your program is generating by how often customers are redeeming their points for rewards. That means they are pleased with the program and see how it adds value to their business. If you’re seeing a lot of breakage in your loyalty program (i.e. points not getting redeemed), that shows you that your customers don’t care about your rewards.

They’re not excited about or even interested in redeeming their points. This could be because your benefits are too small or that they just don’t know about the benefits because they have no idea how many points they have.

Customer Engagement

Keeping track of how engaged your customers are with your rewards program can be tricky. One thing that you can do is ask employees to jot down every time a customer refuses to join the program because they are already a member, yet they are opting not to use the rewards membership with their current purchase.

It could be that people are simply saying they’re already members to get out of being pressured to join, but it could be that some customers don’t yet feel engaged with the membership. Either way, if customers are not engaged enough to want to sign up or interested enough to use the membership once they have it, there is a problem. If you are getting a high percentage of customers who aren’t using their membership, look at what can be altered to improve how your customers are engaged with it.

Of course, there is also a really easy way to see which customers are not engaged with their membership. Track the number of customers who signed up for the program without ever using it. Also track how many customers used the membership program for a while, and then stopped. Reach out to customers to see what the problem is and offer to solve it. This can be a great way to increase the use of your program.

Take Action!

No matter what sort of customer rewards program you are offering your customers, you can take action to set yourself up for success. By measuring your success and making changes to how the program is run or promoted as you go, you can ensure the long-term success of your program. If you don’t already have a program in place you can sign up for a free trial now and see what you’ve been missing!