The following graphs show the rate at which your customers are earning and spending Loyalty points.
Loyalty engagement rate
This graph shows the percentage of members who have accumulated points from purchases and actions, or have redeemed points for rewards, in the selected time period.
If you manage a Spend & Benefits plan without visible points the activity is based on purchases only.
It also provides a breakdown by tier: It shows the percentage of customers from that tier that were active on that day.
Points redemption rate
This graph shows you the percentage of points redeemed for rewards, out of the earned points, during the selected period, based on your Smart Insight Recency settings. It will show you if customers who earn points are also redeeming them or there are points not being used. The higher the percentage, the more your customers are redeeming their points.
The rate is shown with a daily breakdown per tier and in general for all Loyalty customers.
Here again, we use the Defecting Recency parameter from Smart Insight: Management > Smart Insights Settings > Customer lifecycle status > Defecting recency limit.
The calculation is as follows:
- For each day in the selected period, Loyalty finds the customers who earned or spent points for that day.
- For those customers, Loyalty looks at the last X days ending on the day of the selected period, where X = Defecting recency limit.
- Per customer, we find all earned and spent points in the last X days
- Loyalty divides the number of redeemed points by the number of earned points for that customer and this gives you the individual redemption rate.
The rate can never be higher than 100%, we always cap it at 100%. (Theoretically, the redemption rate can be higher than 100%, if the customers are also redeeming points collected in earlier periods.)
- Loyalty divides the customers into tiers according to the day you choose on the graph.
- Loyalty averages the redemption rate per tier. This gives you the average redemption for that group for that day.