Look-alike analysis
Posted: Wed Jan 29, 2025 7:06 am
Another effective strategy is to compare program members and non-members who are in the same age and social group. This method is called “look-alike analysis.”
It is assumed that the loyalty program is joined by those customers who have been using the company's product for a long time. Therefore, their behavior as consumers has not changed much after accessing the system. Look-alike is designed to test this assumption and determine the true value of the incentive scheme.
In addition, it helps to develop an interior designers service email list action plan for involving non-members in the bonus system, influencing them with the same methods that have proven effective for participants from a similar group.
Control groups
To measure the impact of implementing individual elements of a loyalty program, it is best to use control groups.
By definition, a control group is a randomly selected group of customers who will not be subjected to any marketing tricks. It should include representatives of all categories of customers included in the database, and in the appropriate proportion. In other words, it should be a representative sample.
Control groups are usually created to debug individual marketing ideas and system mechanics. It is very difficult to form a sample to test a loyalty program as a whole objectively, since its members would have to be protected from access to information about the product. And this is unrealistic, since the company is engaged in its public promotion.
NPS – customer loyalty index
The most reliable way to learn about customer loyalty is to ask them directly. That’s why Net Promoter Score (NPS) is the most popular method for determining customer loyalty.
NPS – customer loyalty index
The index helps to calculate the probability that a person will come to you again or recommend their friends and acquaintances to do so. According to this method, they are asked only one question, which allows making such a forecast. It sounds something like this: "On a scale from "0" to "10", what is the probability that you will recommend us to a friend or colleague?"
The answers are grouped as follows:
"0" - "6" - "Critics";
"7" - "8" - "Neutrals";
"9" - "10" - "Promoters".
The NPS index is the difference between the percentage of "Promoters" and the percentage of "Detractors":
NPS = % Promoters - % Detractors
It allows you to evaluate the results of the loyalty program from various positions:
Comparison of loyalty of system participants and buyers who have not joined the system.
Tracking index dynamics among program members over time.
Comparing NPS scores across different participant groups.
The most important advantage of the index is its simplicity. But it does not answer the question of why some consumers are loyal to the company, while others are not. Therefore, the effect of its use will only be seen in combination with other types of analysis. Together, they will provide an adequate description of the situation.
It is assumed that the loyalty program is joined by those customers who have been using the company's product for a long time. Therefore, their behavior as consumers has not changed much after accessing the system. Look-alike is designed to test this assumption and determine the true value of the incentive scheme.
In addition, it helps to develop an interior designers service email list action plan for involving non-members in the bonus system, influencing them with the same methods that have proven effective for participants from a similar group.
Control groups
To measure the impact of implementing individual elements of a loyalty program, it is best to use control groups.
By definition, a control group is a randomly selected group of customers who will not be subjected to any marketing tricks. It should include representatives of all categories of customers included in the database, and in the appropriate proportion. In other words, it should be a representative sample.
Control groups are usually created to debug individual marketing ideas and system mechanics. It is very difficult to form a sample to test a loyalty program as a whole objectively, since its members would have to be protected from access to information about the product. And this is unrealistic, since the company is engaged in its public promotion.
NPS – customer loyalty index
The most reliable way to learn about customer loyalty is to ask them directly. That’s why Net Promoter Score (NPS) is the most popular method for determining customer loyalty.
NPS – customer loyalty index
The index helps to calculate the probability that a person will come to you again or recommend their friends and acquaintances to do so. According to this method, they are asked only one question, which allows making such a forecast. It sounds something like this: "On a scale from "0" to "10", what is the probability that you will recommend us to a friend or colleague?"
The answers are grouped as follows:
"0" - "6" - "Critics";
"7" - "8" - "Neutrals";
"9" - "10" - "Promoters".
The NPS index is the difference between the percentage of "Promoters" and the percentage of "Detractors":
NPS = % Promoters - % Detractors
It allows you to evaluate the results of the loyalty program from various positions:
Comparison of loyalty of system participants and buyers who have not joined the system.
Tracking index dynamics among program members over time.
Comparing NPS scores across different participant groups.
The most important advantage of the index is its simplicity. But it does not answer the question of why some consumers are loyal to the company, while others are not. Therefore, the effect of its use will only be seen in combination with other types of analysis. Together, they will provide an adequate description of the situation.