There are several key metrics that show how well your program is doing, explained below. All these metrics can be found on your LoyalTree Merchant Dashboard.
Engagement rate (scan rate)
Your scan rate indicates how frequently your program is being used. Healthy scan rates vary depending on industry and customer base but our general guideline is this:
For a sit-down restaurant, 3-5% is average, 5-10% is healthy and over 10% is a sign of a strong, highly-used program
For a quick serve restaurant, 5-8% is average, 8-15% is healthy and and anything over 15% is excellent. We have some quick serve programs whose average monthly scan rate is over 30%!
This number will vary largely based upon the size of your overall customer base, how long your program has been running and how many locations your business has. There are programs that have less than 100 members and are extremely healthy and successful and programs with several thousand members that are not successfully engaging their customer in a consistent way.
Because of the variance, it is difficult to give any baseline to shoot for. However, a healthy program that has been live for more than 6 months will usually have at least 250 members per location.
- A typical program’s rate of growth is much higher at the beginning, and then tends to level off a bit after the first six months. Rate of growth varies greatly from business to business, depending on the number of locations, size of the community and whether or not the primary customer base is local or non-local.
- Even the most successful programs have months with very low growth, and there are bound to be spikes and drops in your member growth, month over month. However, on average, for the first six months of a program, the average member growth is roughly 25%, which comes out to about 56 new members per month, per location. After the first six months, the average member growth is roughly 6%, which comes out to about 36 new members per month, per location.
Increase in check size of LoyalTree members
Typically, LoyalTree members spend 20%-30% more than the average customer. It is to be expected that the LoyalTree check size is lower at first as many members are redeeming the joining reward. However, if you find that this number is consistently lower, click here for suggestions for adjusting your program.