Loyalty Program Metrics That Actually Matter — And How to Use Them
Your loyalty program might be giving out points, cashback, or vouchers — but is it working?
Many merchants launch rewards programs without tracking the right data. Whether you want to boost ROI, increase repeat visits, or grow customer lifetime value, the key is to measure what matters. Here are the essential metrics to monitor — and how Loyalty Plus makes it easy.
Redemption Rate
How many rewards are actually being redeemed?
• High redemption → good engagement, but higher cost
• Low redemption → potential disengagement, or too hard to use
Breakage & Liability
Breakage = rewards issued but never used.
This can look good for margins but may signal friction or disinterest.
• Keep breakage healthy, not extreme
• Use expiry reminders, gamification, and auto‑redemption to keep things active
Repeat Purchase Rate
What percentage of loyalty users make a second purchase?
This metric shows whether loyalty is actually… building loyalty.
Average Order Value (AOV)
Are loyalty members spending more per visit?
• Use AOV lift to measure the effectiveness of tiers or bonus rewards
• Compare loyalty vs. non-loyalty segments
Customer Lifetime Value (CLV)
Track how much a customer spends over time.
CLV is your north star metric — especially for high-frequency or subscription-based businesses.
Program ROI
What’s the return on what you spend?
• Total cost of rewards (points issued, vouchers redeemed, discounts)
• Minus incremental revenue from loyal customers
• = ROI
Loyalty Plus provides live campaign analytics and comparisons by channel, cohort, or campaign.
Engagement Metrics
Don’t overlook the behavioral stats:
• How many people log in to check points?
• Who uses vouchers vs. cashback?
• What’s the opt-in rate for gamified elements?
Conclusion
You can’t improve what you don’t measure.
With Loyalty Plus, you’ll have real-time visibility into the health of your program — and the flexibility to optimize it at every step.
📊 Ready to track the metrics that matter? Book a demo to explore our dashboard
