SHOPPER ACTIVITY METRICS
Shopper activity metrics measure the participation of shoppers in the loyalty or CRM program. For a loyalty program to be effective, a retailer must have a high percentage of its shoppers enrolled in a program and self-identifying with each purchase. If a meaningful percentage of shoppers are not participating, then the retailer is not capturing enough data by shopper for the program to deliver effective results.
The key shopper activity metrics are the percentage of all shopper trips that are captured in the program and the percentage of the retailer’s total sales that are captured in the program. To more easily convey these metrics, we can assume the retailer uses a card and call these metrics “trips on the card” and “sales on the card”. The metrics are the same if the retailer has a cardless program and uses another type of personal identifier instead.
ProLogic recommends that retailers strive for shopper activity goals of at least 60% for trips on the card and 80% for sales on the card. At these levels of participation, the retailer is collecting enough data on a by-customer basis to ensure that the program can work properly to segment shoppers and design effective promotions. For retailers with activity metrics below these levels, we work with the retailer to boost shopper enrollments and participation in the loyalty program.