KPIs: retention rate, redemption rate, engagement lift

KPIs: Retention Rate, Redemption Rate, Engagement Lift

A loyalty programme is only as strong as the outcomes it produces. To understand its performance clearly, brands rely on three core KPIs. These indicators reveal whether the programme motivates users, creates repeat behaviour, and supports long term growth. A well designed loyalty system measures these KPIs in real time, helping teams make decisions that improve user value and campaign results.

Retention Rate

Retention rate shows how many users continue to engage with a brand over a given period. It reflects whether the loyalty programme is encouraging customers to return, make repeat purchases, or continue participating in reward activities.

• Indicates customer satisfaction
• Shows the impact of rewards on repeat behaviour
• Helps brands identify drop off points
• Supports forecasting for future campaigns

High retention suggests the programme is relevant and valuable. A lower rate may signal issues with the reward structure, communication, or value proposition.

Redemption Rate

Redemption rate reveals how many users actually claim the rewards they earn. This KPI acts as a direct measure of reward usefulness. If users redeem points or benefits frequently, it means the programme offers something they genuinely appreciate.

• Shows the strength of the reward catalogue
• Indicates whether users understand the system
• Highlights gaps that may be limiting usage
• Connects directly to customer satisfaction levels

A strong redemption rate also reduces wastage, ensures the reward budget is used properly, and improves the overall programme ROI.

Engagement Lift

Engagement lift measures how much user activity increases due to the loyalty programme. It helps brands understand the influence of rewards on user behaviour.

• Tracks increase in logins or app visits
• Shows growth in purchases or actions taken
• Identifies the success of new campaign strategies
• Helps segment high value vs low value users

This KPI helps brands see whether the programme is driving long term participation or just creating short term activity spikes.

How a Modern Loyalty Platform Supports KPI Measurement

Tracking these KPIs manually can be time consuming. Using an automated loyalty platform provides a structured and reliable way to measure performance across user segments. Platforms like the Hubble Loyalty Portal give brands clear visibility into user journeys, behavioural triggers, reward preferences, and campaign level results.

• Real time dashboards for retention and redemption
• Automated reports for user engagement
• Custom rule engines for reward distribution
• Insights that guide optimisation decisions

With these tools, brands can make faster adjustments to reward tiers, communication flows, and user segments to maximise programme impact.

Putting It All Together

Retention rate, redemption rate, and engagement lift form the foundation of loyalty programme measurement. By tracking these KPIs consistently, brands can strengthen user relationships, optimise budgets, and build a more effective long term strategy. A dependable loyalty platform makes this process easier and provides the clarity needed to grow with confidence.