Measuring the success of your loyalty emails

Email marketing remains one of the most cost-effective ways to communicate with your customers. In fact, one study found that for every $1 spent, email has an average return of $38. The inbox is a great place to re-engage with your customers and prompt them towards another purchase.

On top of this, emails tied to your loyalty program perform 14 times better than regular marketing emails. But how can you measure if they’re driving real results? In this blog, we take a look at the key marketing metrics you can use to monitor the success of your loyalty emails.

Open rate

Open rates are one of the best ways to tell whether your loyalty emails are getting your shoppers’ attention.

If your percentage is high, this shows that your loyalty members trust your brand. They have confidence that you’re going to serve them appropriate, personal content and want to hear what you have to say.

When it comes to loyalty emails, the contents of your subject line is key to getting those opens. You need to captivate the attention of the reader and communicate that they have rewards waiting, all without going for a hard sell.

One way to do this is to make your subject line personal by adding in details such as your customer’s name, or the reward they have recently secured. As with all parts of your loyalty program, these personal touches go a long way toward securing long-term loyalty. Loyalty programs also give you the added benefit of creating one-off rewards based on a customer’s purchase history. Use your email subject lines to communicate these personalised rewards up front, so the customer is enticed to open.

With 80% of customers stating that they are more likely to do business with a company if it offers personalised experiences, subject lines offer the perfect platform to initiate a one-to-one relationship with your shoppers.

Click rate

Click rates show, out of all the successful emails delivered, how many get at least one click in the content. When it comes to your loyalty emails, this percentage will show if customers find your loyalty offers enticing enough to click through and explore them further.

Use this information to learn what type of loyalty email gets the most engagement. Are your customers more likely to click for a deal on a post-purchase email or a reward within a monthly reminder? If you learn the trends, you’ll be able to tailor your approach to your customer’s behaviour and target them with the right emails at the right time.

Unsubscribe rate

Your unsubscribe rate, although disheartening, can still tell you a lot. It offers the opportunity to take a long hard look at your emails and work out why your customers no longer see them as valuable.

Maybe you’re sending too many too often. Maybe the subject line was misleading. Or, maybe the content doesn’t match up with your brand. Use these findings to your advantage, and experiment with new approaches to optimise your loyalty emails.

Track your links

While measuring open and click rates is a great start, it’s useful to understand what people do after they click through from your email.

UTM codes are short snippets of text added to the end of your URLs that help you track if customers have made it back to your store as a result of your email. They give you insights into what types of loyalty email content perform best. And, expose more information on your customer’s online behaviour.

Once you’ve tagged the links in your email campaigns with UTM codes you can open up your analytics tool and begin attributing website traffic to the campaign. This data helps you compare your email efforts against other drivers of traffic (such as search, social and paid advertising), so you can decide what to spend more focus on moving ahead.

Google Analytics has a useful URL Builder tool that can be used to build links for free. Just be sure to think hard about what you’re assigning to each parameter – and follow your decision religiously. You need to express enough variety that you can differentiate the types of email and drill down into each one’s effectiveness. But not so much that you’re left with billions of categories that you can draw little or no value from. There are a couple of handy guides here and here. But, don’t be scared to mix this up and do what’s right for your team either.

Change is good

Your loyalty emails have many added benefits. They re-engage at-risk customers, increase brand awareness and maintain relationships with your customers. LoyaltyLion easily integrates with many popular email marketing platforms – including Klaviyo and Dotmailer – so you can easily deliver results-driven email campaigns.
Be sure to keep testing and optimising your loyalty emails. Our LoyaltyLion Academy shares some more ways to improve your email communications for the better.

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