I’m often asked by founders and marketing teams: “Can we set sensible, measurable KPIs for our loyalty programme without months of analysis or a data team?” The short answer is yes — if you follow a simple, time-boxed framework that forces clarity, prioritisation and quick wins. Over the years I’ve used a 30-day process with SMEs that produces a small set of meaningful KPIs, baseline numbers, and an operational dashboard you can actually use. Below I walk through the framework I use, why each step matters, and practical templates you can copy straight into a spreadsheet or dashboard.
Why a 30-day framework works
SMEs don’t need dozens of vanity metrics. They need a handful of measurable indicators that connect directly to business outcomes (sales, retention, CAC) and the levers your loyalty programme controls (frequency, spend, referrals). A 30-day sprint forces decisions: choose the right KPIs, get the data you already have, set realistic targets, and build the simplest dashboard that makes the programme accountable.
Week 1 — Define who you’re optimising for and the value exchange
The first mistake I see is picking KPIs before you’re clear about the programme’s primary purpose. Do you want more repeat purchase frequency? Higher average order value (AOV)? More referrals? Often the answer is “all of the above,” but you must prioritise.
Spend the first few days answering three short prompts and write them on one slide or doc:
- Primary objective: e.g., “Increase 30- to 90-day repeat purchase rate among existing customers.”
- Primary audience: e.g., “Customers with 1–2 purchases in the past 6 months, CLTV projected £50–£200.”
- Value exchange: e.g., “Reward points for repeat purchases and referrals; double points during month 1 to drive re-engagement.”
Being explicit here changes the KPIs you choose — a programme aimed at reactivation uses different metrics from one aimed at increasing basket size.
Week 2 — Choose 4–6 core KPIs and baseline them
Pick a shortlist: acquisition, engagement, retention, value, and programme health. Limit yourself to 4–6 KPIs. Below is a practical table I share with clients:
| KPI | Formula / Definition | Example target (SME) |
|---|---|---|
| Member activation rate | Members who complete first reward action / total enrolled | 40% within 30 days |
| 30–90 day repeat purchase rate | Customers with another order 30–90 days after first / cohort size | Increase from 12% to 18% |
| Average order value (AOV) uplift | AOV of members / AOV of non-members | +8% vs non-members |
| Referral conversion rate | Referred customers who convert / total referral invites | 5% within 60 days |
| Points liability vs projected breakage | Outstanding points value / expected redeemed value | Liability < 10% of monthly gross margin |
Use the past 3–6 months of data to get baselines. If you don’t have historical data, run a simple proxy for two weeks (e.g., track sign-ups, first purchases, and AOV) and extrapolate conservatively.
Practical data sources and shortcuts
SMEs rarely have a perfect data stack. Here are quick sources I rely on:
- eCommerce platform reports (Shopify, WooCommerce) for orders, customers, AOV.
- Email/CRM provider for open rates, click-to-purchase, and cohort lists.
- Loyalty vendor reports (if you use Smile, Yotpo, LoyaltyLion) for enrolment and redemptions.
- Google Analytics for traffic and conversion by channel (use UTM tags for referral invites).
Don’t wait for consolidated data — create a single “source of truth” sheet that pulls exports from these three places. It’s messy at first but gets you actionable baselines within days.
Week 3 — Set targets, tests and a 30-day measurement plan
With baselines in place, choose realistic targets and the interventions you’ll run. I recommend a mix of one high-impact behavioural test, one product or rewards tweak, and one measurement improvement:
- Behavioural test: Use double points for returning customers in week 2 to drive re-engagement.
- Product/rewards tweak: Introduce a low-friction “welcome reward” (e.g., free shipping on first order after signup).
- Measurement improvement: Add a UTM-tagged referral email and track conversions separately.
Record exactly how you’ll measure impact. For example: “Compare 30–90 day repeat rate for cohort A (double points) vs cohort B (control).” Allocate ownership — who runs the email, who updates the loyalty rules, who pulls the data.
Week 4 — Build the simplest dashboard and agree the reporting rhythm
Your dashboard doesn’t need fancy BI tools. A single Google Sheet or Data Studio report with these elements will do:
- Top-line KPIs with current value, baseline, and target.
- Weekly trend charts for enrolment, activation, and repeat rate.
- Experiment tracker: what was tested, start date, end date, and result.
Example structure for a Google Sheet:
- Sheet 1: KPI summary (current vs baseline vs target).
- Sheet 2: Raw exports (orders, members, redemptions).
- Sheet 3: Experiment log.
- Sheet 4: Notes & action items.
Agree a reporting cadence: I recommend weekly 15-minute stand-ups to monitor trends and a 30–60 minute review at the end of the 30 days to decide next steps.
Common questions I get asked
How many KPIs are too many? More than six usually dilutes focus. Start small and expand only when you can reliably measure the first set.
What if my data is unreliable? Be transparent about data quality. Track a “data confidence” note for each KPI and prioritise fixes that unblock decision-making (e.g., ensuring referral UTMs are captured).
Should I benchmark against other brands? Benchmarks are helpful for context — Starbucks and Sephora set high expectations — but use them sparingly. Compare to similar-sized businesses in your sector or your historical trends.
Quick checklist to copy into your first day
- Create a one-page programme objective and audience statement.
- Export 3 months of orders and customer data from your eCommerce/CRM.
- Select 4–6 KPIs from the table above and compute baselines.
- Define one high-impact test and one measurement improvement to run in the next 30 days.
- Set up a single Google Sheet dashboard and schedule weekly reviews.
I’ve used this framework with boutiques, cafés, subscription services and direct-to-consumer brands. In every case, the disciplines are the same: pick objectives that matter, measure only what you’ll act on, and create a feedback loop where experiments feed new targets. If you’d like, I can share a downloadable Google Sheet template with the KPI table and experiment log — just tell me which eCommerce platform you use and I’ll adapt the formulas.
