KPI's - Benchmarking and Reporting
Before we can begin talking about ‘success’ of an app, it’s important to understand the common KPI’s and benchmarks that should be used.
Pepper use 3 KPI’s to measure initial traction of the app on launch:
- Adoption - number of new users created
This primary stat can be measured using the 'New Users' statistic, available on the Pepper Web Console Dashboard. Adoption indicates how successful marketing of the Pepper powered app and the Loyalty program is. Setting an achievable target for adoption before launch of the app and then reviewing it regularly post launch allows marketing to be targeted correctly.
- Conversion - how many new users go on to make a purchase
Using the Data & Analytics>Data Export option allows us to report on the number of users who create accounts and then go on to make a purchase. The Pepper implementation team can assist with making sense of this data, but it is important that this is understood and reported on regularly post launch. Low conversion of users can indicate issues with triggers for use and may need changes to the marketing strategy.
- Retention - how many users continue to make further purchases after their first purchase
This, of course, is the holy grail of a loyalty app. By using the rewards and marketing tools in the Pepper platform correctly, the goal is to increase the brand engagement, and therefore the spend of a user.
KPI’s related to direct revenue measurements which are useful on a more ongoing basis:
- ASPU - Average spend per active user
Measured over a consistent period of time, this allows us to show the increased value of an app user over time, and to measure success of changes that are made which are intended to increase a user's spend, e.g. introducing new reward perks, or running a series of audience based push notifications.
- SOW - Share of Wallet
The percentage of a store's revenue which is processed through the 'App' payment type on any given day is known as the share of wallet. Because customers who use the app and are engaged with the loyalty scheme have a higher lifetime value to the merchant, understanding how much of a merchants' revenue is being driven by the app is a direct measure of success of the loyalty scheme. It can also help to fine tune the value of a loyalty scheme, when combined with the ARPU to measure the value of loyalty users, compared to non loyalty users.