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LoyaltyLevers Balanced Scorecard: Measuring Engagement

As noted in Loyalty Measurement: C-Suite Needs a Balanced Scorecard, executives need a balanced presentation of results to gauge program performance.  Engagement, one of the three elements of the LoyaltyLevers Balanced Scorecard, is a leading indicator of Loyalty Program success. The five measures of loyalty program Engagement are detailed in this article.

Deep Dive into the Engagement dimension

Engagement with Loyalty programs is what I’d call a leading indicator. If you have high and growing levels of engagement, good things will happen to loyalty sentiment and program ROI in the near term. If engagement is deteriorating, immediate action is needed.

There are 5 dimensions to loyalty program engagement, that focus on both program/benefit engagement, and overall engagement with the program communication and website. Perhaps most important and elusive is creating and tracking advocacy, another key measure.

Through a comprehensive analysis, available data is gathered for a minimum 3-year period. If you are just starting a program, these elements should play an important role in defining your reporting requirements. Depending on the program objectives, strategies and tactics in play, each of the 5 elements are weighted accordingly to arrive at one composite index. Custom weighting can be developed based on the context for any individual program.

This Loyalty Engagement score can be used to both measure improvements and prioritize where to test and roll out new tactics to increase overall engagement. Implementing personalized, timely and helpful communications will boost engagement rates dramatically.

Engagement Scorecard


LoyaltyLevers Take: Optimizing Engagement


Engagement is the engine that drives loyalty program impact. Far too many programs, particularly mature ones, fall into the trap of relying on the awards schedule and/or tier structure to do the heavy lifting. Most fail to personalize communications or take even the most rudimentary steps to create authentic engagement. Focusing in this area is a highly cost efficient and speedy way to boost overall program performance.

See our best practices to design and implement Engagement Activators.