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Customer Loyalty Program

Proven Metrics to Measure the Success of Your Customer Loyalty Program

Struggling to figure out the success of your loyalty program? Don’t worry – you are not the first!


With a plethora of parts working together to create a successful business model, sometimes it becomes hard to separate individual cogs of the machine and identify what is working and what isn’t.


In the same way, the overall outcome of a customer loyalty program is hard to evaluate. So, we thought of shedding light on proven metrics that can help you determine what your campaign has brought to the table so far.


How to Measure the Success of Your Loyalty Campaign


Redemption Rate


The redemption rate or burn rate is the number of people actually redeeming the rewards you are offering.


Loyalty Program - Redemption
Loyalty Program – Redemption

On average, 13.67% of coupons issued using customer loyalty program solutions are actually turned into rewards. If you have a redemption rate of 15% or more, you’re already on the right path. But you should aim to achieve a redemption rate of more than 20% to pave your way to long-term success.


However, if your redemption rate is subpar, chances are customers are not engaging with your program. So, consider offering rewards like free shipping, storing credits, discounts, and free products to them for multiple actions. It will boost your redemption rate by up to 30%.


Active Engagement Rate


Measuring active engagement rate is another way to evaluate the effectiveness of your customer loyalty program. This metric is defined by the number of people actively engaging with your reward campaign.


Customer Loyalty Program- Engagement Rate
Customer Loyalty Program – Engagement Rate

The engagement rate can’t increase with just a predictable, one-dimensional program that rewards customers. You also have to pay heed to customer behavior to get the best results.


  • Are your customers visiting your online shop more than ever?
  • Are they exploring various products or areas of your website?


Leverage this information, create customized rewards based on their behavior and send them personalized emails using customer loyalty program software. It will improve their purchasing power and encourage them to make a purchase.


Customer Participation Rate


Akin to the engagement rate, this metric helps you profoundly understand your customer behavior and overall engagement. The customer participation rate is the total number or customer participating in your loyalty program.


Customer Loyalty Program - Participation Rate
Customer Loyalty Program – Participation Rate

It gives you a better sense of how willing your customers are to participate in what your loyalty program is offering. This way, you will get more actionable numbers to evaluate your campaign’s growth and steer its direction toward the right path.


Final Words


The key to your loyalty program’s success lies in customer experience, and the metrics mentioned above help you determine how your customers respond to your campaign. If any of these metrics is not providing you expected outcomes, you need to figure out ways to save your failing loyalty program.

Create your own Loyalty Program

About Us

CheerMe allows you to create a fully-customized, tier-based loyalty program and build an emotional connection with customers through surprise and delight. With this program, you can provide customers access to greater benefits and rewards and thus encourage them to spend and engage more to reach the next tier level.