You aren't required to have a loyalty program, but it still makes sense to track some metrics around loyalty.
The whole point around loyalty programs and loyalty in-general is to have customers coming back to buy again without you having to spend much to get them.
Given that, the primary metrics you want to track would be:
- what rate are customers are buying again time (Repeat Purchase Rate or Returning Customer Rate)
- how many new customers do you acquire vs repeat customers
- how much of your revenue come from repeat customers (Repeat Sales Percentage)
- how much do repeat customers end up spending (Average Lifetime Value (LTV), especially when compared to Average Order Value)
Notice how a lot of these are rates or best compared to your new customers. That's important to make sure your repeat customers are actually better buyers than your one-time customers.
Monitor those once per month or continuously with Repeat Customer Insights and you'll start to understand how valuable your customer loyalty is.
Eric Davis
Learn which products lead to the customers who spend the most
You can use the First Product Analysis in Repeat Customer Insights to see which products lead to the customers who spend the most. Going beyond best sellers, it looks at the long-term purchasing behavior of your customers.