As noted in Loyalty Measurement: C-Suite Needs a Balanced Scorecard, executives need a balanced presentation of results to gauge program performance. Loyalty Sentiment is one of the three elements of the LoyaltyLevers Balanced Scorecard, with measurement of the appeal of Loyalty Program Benefits and Member Affinity. These key indicators gauge the equity you are building with positive Loyalty Sentiment and Emotional Loyalty. This article dives deeper into measuring Loyalty Sentiment.
Deep Dive on Measuring Loyalty Sentiment
Because loyalty is an emotion as well as a behavior, measuring emotional loyalty necessarily involves surveys. The LoyaltyLevers framework includes two dimensions: Program Benefits and Member Affinity. Taken together, these two elements provide a critical take on the power of the loyalty program, and the impact it is having on emotional loyalty.
Program Benefits includes measures of Value, Ease and sense of Appreciation. The Member Affinity dimension gets more directly at the key sentiments that matter most, zeroing in on likelihood to maintain existing business, try new products/services and recommend the program to a friend. In addition, a key measure is the degree to which customers will go out of their way to use a product or service. It is the true essence of loyalty when a member will opt to visit a retail store that is a little further away, wait until a for a favorite service provider can be scheduled or forego a discount at a competitor to use your brand.
Loyalty sentiment can be tracked in its own dedicated and ongoing survey or included in the line of questioning in ongoing brand tracking study. The latter provides the added benefit of understanding program awareness and attitudes among non-members. I recommend quarterly reporting at a high level, with the option to aggregate data across time periods to get a segment level read.
LoyaltyLevers Take: Loyalty Sentiment is Often More Powerful
Emotional Loyalty has been receiving a lot of press lately, but precious little has been written about practical ways to create it. By following the LoyaltyLevers methodology, and introducing tangible program benefits that act to increase the sense of status, surprise/delight an important customer, make the experience easier and more within the member’s control, or enlisting members into the brand’s lifestyle and community. These Sentiment Building benefits must be every bit as real as the tangible rewards; the fact is, the effect that have on program performance is often more powerful.
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