Are Active Members “Really Active”?

Many loyalty programs consider a member to be active if they’ve had at least one credit-earning transaction or one redemption transaction within a 12 month time period. While this may be a good rule for determining whether the member should stay on the database and in the program, this may not be enough to consider the member “really active” or loyal.

Quite often, loyalty is defined based on transactional metrics such as number of transactions, frequency of transactions and tenure as a customer. There are other metrics that can be considered as well such as whether the member has referred others to your business, provided their email address or updated their profile. By taking into consideration a combination of transactional and behavioral metrics, the program may identify some loyal customers that it would have otherwise missed. Plus, this information can be used to model “likely loyal members” in an effort to migrate members from a state of neutrality to loyalty.