One of the biggest questions people have is how long it takes for a loyalty program to succeed. Many entrepreneurs start their programs without a well-adjusted future projection, which ends up harming development.
There is no average prediction for companies in general, but it is possible to establish a timeline according to your company's current conditions. Here's what you need to consider to do this.
What will accelerate your growth
Starting a loyalty program with maturity in your field makes all the difference. Because your ideas will be based on experience, not just your imagination or other people's opinions. In addition, you know the market better and know how to position yourself.
Receiving mentorship from successful professionals makes a big difference. Even if you have experience, you'll be able to see from new angles, and even if you decide not to apply the advice, you'll have that ace up your sleeve when needed. The mentor may see what you do not see and will point out details that will make a significant difference in your business.
Your social influence also matters because it will indicate the reach of your audience. Be it in your region, media, or social networks, the more the better. Furthermore, having partners with the same purpose opens many doors and will accelerate the growth of the loyalty program.
How much you are willing to invest in marketing has a direct influence on the results. The more intelligent and direct your marketing strategy is, the better your performance will be in the future.
What stalls your growth
Lack of experience does not prevent growth, but it hinders it. This happens because there will be more mistakes than hits at the beginning. To improve this scenario, it is important to invest a lot in studies, more so than in other strategies until confidence increases a bit. This will prevent a significant financial loss because you will be more mature to take risks.
Those who do not invest time and money also cannot develop. Most businesses do not sell themselves, so you cannot relax. It's you, through marketing and other investments, who will show the value of your company.
Along with marketing is the reach of the audience. If the company's influence is low, the loyalty program will not be known. Therefore, be everywhere possible, with partners, social networks, and media. Even if the company is not large, this will create familiarity and facilitate recommendations.
Measuring growth
To measure the growth of your loyalty program it is important to have the company's growth data for at least 1 year. This way, you will have the average growth of the company without the loyalty program. After that, you will compare these data with the company's growth in its current status with the loyalty program, during the same period of the previous year.
Start by comparing month by month, then evaluate quarter by quarter, until you reach the period of 1 year or more. This evaluation should include your frequent ROI, revenue growth, average ticket, and contribution margin. With this data, you can assess how much your loyalty program is influencing sales and verify whether its growth is happening as planned.
An average period to measure the growth of anything is 3 months. If in 3 months nothing or little has changed, it is time to create new strategies and understand what might be stalling your growth. If the company has already been implementing the program for more than 1 year, this period is good for comparison.