# Loyalty & Incentive Metrics (Small-Goods DTC)

## Outcome metrics

| Metric | Definition | Use |
|--------|------------|-----|
| **Repeat purchase rate (30/60/90d)** | Customers who made a 2nd purchase within 30/60/90 days of first / first-time buyers in period | Core loyalty health |
| **LTV (lifetime value)** | Total revenue (or profit) per customer over their relationship | Program ROI |
| **Redemption rate** | Points (or equivalent) redeemed in period / points earned in period | Engagement with rewards |
| **AOV (members vs non-members)** | Average order value for loyalty members vs non-members | Impact of program on basket |
| **Referral conversion** | Referred sign-ups who purchase / total referred sign-ups | Referral program effectiveness |

## Process metrics

| Metric | Definition | Use |
|--------|------------|-----|
| **Points earned per order** | Total points earned / orders in period | Earn-rule calibration |
| **Points redeemed per period** | Total points redeemed (or $ value of redemptions) in period | Redemption behavior |
| **Tier distribution** | % of members in each tier | Tier threshold design |
| **Welcome offer conversion** | First orders with welcome offer / sign-ups who received offer | Welcome incentive effectiveness |
| **Win-back rate** | Lapsed customers who purchase after win-back offer / lapsed who received offer | Reactivation effectiveness |

## Dashboard suggestions

- **Weekly**: Orders from members vs non-members; redemptions (count and $ value); new sign-ups to program.
- **Monthly**: Repeat rate (30/60/90d); tier mix; referral sign-ups and referral-driven orders.
- **Quarterly**: LTV by cohort (signed up in quarter); redemption rate; A/B test results (e.g. with vs without welcome points).

## Definitions to align internally

- **Member**: Anyone who has signed up for the loyalty program (or made first purchase if auto-enrolled).
- **Repeat customer**: Customer with 2+ orders in the defined window.
- **Lapsed**: No order in X days (e.g. 60 or 90); define and use consistently for win-back.
- **Redemption**: Use of points (or equivalent) for discount, free ship, or product; record as “redemption event” and optionally “$ value of reward.”