Loyalty Performance: Financial Health & ROI

1. Program Health Metrics

• Monthly Redemption Rate: * Metric Definition: The percentage of issued points that are successfully redeemed for rewards within the same month.
  • Target Benchmark: 13% – 15%. Rates below 10% indicate high churn risk and low reward appeal.
• Outstanding Points Liability: * Metric Definition: The cumulative total of "Live" points currently held by your customer base. This represents your program's total financial debt.

2. Commercial & Transactional Impact

• Monthly Program Revenue:
  • Data Logic: Derived from the Loyalty Transactions Ledger. All values are converted from cents to your local currency, and refunded transactions are automatically subtracted from the totals.
• Average Order Value (AOV) Comparison:
  • Measures the spending delta between loyalty members and non-members to validate program ROI.