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From the Little Stream Software blog

You aren't required to have a loyalty program, but it still makes sense to track some metrics around loyalty.

The whole point around loyalty programs and loyalty in-general is to have customers coming back to buy again without you having to spend much to get them.

Given that, the primary metrics you want to track would be:

• what rate are customers are buying again time (Repeat Purchase Rate or Returning Customer Rate)
• how many new customers do you acquire vs repeat customers
• how much of your revenue come from repeat customers (Repeat Sales Percentage)
• how much do repeat customers end up spending (Average Lifetime Value (LTV), especially when compared to Average Order Value)

Notice how a lot of these are rates or best compared to your new customers. That's important to make sure your repeat customers are actually better buyers than your one-time customers.

Monitor those once per month or continuously with Repeat Customer Insights and you'll start to understand how valuable your customer loyalty is.

Eric Davis