Last week at the 2015 COLLOQUY Loyalty Summit, we brought a disruptive point of view to attendees on the subject of measuring loyalty KPI’s (Key Performance Indicators) in our session, "Marketing in the Moments that Matter, Are You Ready?". Specifically, do KPI’s communicate our efforts or our outcomes? Should we be thinking about best practices, or best processes?
When you learn golf as a beginner, you are taught the technical fundamentals (the process) based on best practices which include things like body position, stance, hip rotation and angle of swing. These elements are designed around the rules of physics to help achieve the most consistent, direct impact of the club-face on the ball and ultimately, the lowest possible score (the results!).
Novice golfers look at their scorecard and lament their score. Their instinct is to focus on the driver and how far they can hit a ball. They look for better tools like a new driver, golf ball or any number of swing gimmicks. They ignore the underlying measures like fairways hit, greens in regulation and number of putts, which are leading indicators of scoring better. It’s important for novice golfers to focus on these areas if they want a better result or score.
Like a novice approaches measuring his success at golf, the traditional method of measuring loyalty is based on the tools, tactics and understanding we have about loyal customers. This approach is heavily focused on our goals as marketers, often including an exhaustive list of KPI’s generated from the best practices and success of those already in-market around us.
The questions are: Are those KPI’s the right fit for the goals of your brand and your consumer? Is your brand goal simply to be like everyone else?
In order to advance your loyalty program and build lasting customer relationships, you do not need to focus on an exhaustive list of KPI's generated by others’ success. Rather, you do need to focus on the customer, use KPI's for actionable customer insights and as a result create moments of impact in the moments that matter.
In our next blog post, we will explore how to develop a moment of impact and how to determine the most meaningful set of KPI's for your business.