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Key Performance Measures

The following performance measures are suggested as the basis for consistent reporting of loyalty schemes. Adoption of these measures will allow more accurate internal evaluation to assist best practise adoption and also ensure that external benchmarking of competitive loyalty programmes can be undertaken on a regular basis.


  • Competitive loyalty scheme per £100 spend, £250 spend, £1000 spend. The reference would be against a fuel retail scheme a major Supermarket scheme and the best current Retailer scheme within each national market.
  • Issuance/ Redemption ratios
  • Mystery shopper survey relating to loyalty schemes
  • programme expense expressed as a variable and fixed cost
  • Customer Retention/ Frequency/ Recency ratios
  • Internal loyalty measures eg employee/ operative satisfaction surveys
  • Average customer expenditure per purchase
  • Customer contact report

Variations of the above, dependant upon resource and data availability could encompass regional/ national/ customer segment basis.


The minimum review period is suggested as being Quarterly.


Reviewed at the loyalty manager, marketing manager level and preferably with interest shown in the results from the Board.

Peter G Wray

The author is managing director of pgw Ltd.

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