Problem solve Get help with specific problems with your technologies, process and projects.

In customer loyalty programs, what percentage of customers typically redeem rewards?

If 50% of qualified customers redeem a coupon, is that on par with most customer loyalty programs? Read Michael Lowenstein's advice here.

I work in the heating oil industry. We offer our auto-delivery customers a free liter coupon once their consumption reaches a certain threshold. Currently, around 50% of qualified customers actually redeem the coupon. How could I measure this customer loyalty program and improve it?
In most customer loyalty programs, relatively few of the participants actually redeem their rewards. The most successful customer loyalty programs rely on both tangible and intangible (service, convenience, information, etc.) components. In the kind of research we conduct for clients, we are able to determine the effectiveness of each element based on its correlation, or contribution, to desired loyalty behavior. In the absence of this kind of quantitative evaluation, my recommendation is to debrief the redeemers and non-redeemers of the coupon to find out why they are/are not redeeming and also to determine what else the company can do to build value.

Dig Deeper on CRM strategy and implementation

Have a question for an expert?

Please add a title for your question

Get answers from a TechTarget expert on whatever's puzzling you.

You will be able to add details on the next page.

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.