Common program objectives
Increase purchase frequency
Customers who shop more often are significantly more valuable. Incentives that reward the act of returning, regardless of spend amount, drive frequency. Useful mechanics: Tier points linked to visits (not just spend), benefits triggered after X purchases, achievements for shopping frequency milestones. Metrics: Purchase frequency (average days between transactions), shop count per year.Increase average transaction value
Encourage customers to spend more per visit. Useful mechanics: Spend-and-get rewards (e.g., 100 spent), tier thresholds that reward higher spend with better benefits. Metrics: ATV (average transaction value), ATV 12-month vs. baseline.Retain high-value customers
Focus resources on keeping your best customers, rather than trying to move all customers equally. Useful mechanics: Tier programs with exclusive benefits for top-tier customers, lapse prevention rewards (triggered when a customer hasn’t purchased in 60 days), anniversary rewards. Metrics: Tier retention rate, 12-month spend, lapse rate.Grow the known customer base
Increase the proportion of transactions attributed to known customers. Useful mechanics: Staff incentives for member capture, join-and-get welcome rewards, referral programs. Metrics: % of transactions attributed to known profiles, member growth rate.Improve customer satisfaction
When customers feel seen and acknowledged, satisfaction increases. Useful mechanics: Birthday rewards, milestone acknowledgements, personalised comms. Metrics: NPS/CSAT, redemption rates, email open rates.Setting success metrics before launch
For each objective, define:- The metric you will track
- The baseline value before launch
- The target value at 6/12 months
- How you will attribute change to the program (vs. other factors)