Measuring your return on the investment of your customer program is key to capturing the attention of the company leaders. Here are three approaches to measuring ROI:
- Risk – How do financials align with our customer metric? What are our financial asset in a loyalty context? Where are we vulnerable (both short-term and long-term)?
- Reality – Do customers do what they say they are going to do? What is the time lag between intention and behavior? What are the industry, business and economic factors that might affect the lag? Where do we have untapped growth potential?
- Return – How do financials and loyalty move over time? What is your return over time? What is your loyalty elasticity? How do we justify the investment in the overall customer program?