A/B Test Idea: Loyalty Programs

Loyalty programs are a great way to encourage your existing customers to continue doing business with you. At the same time it allows you to test the waters to see if customers find it valuable. With that said, we highly recommend implementing a loyalty program as an A/B test because it is a great way to determine if a loyalty program is a good fit for your business.

The Experiment:

When you first run a loyalty program, you need to choose which customers to offer the loyalty program to. You can choose to offer your loyalty program to all of your customers or only a portion of your customers. If you offer the loyalty program to all of your customers, you can compare the results to the previous period where you weren’t offering the loyalty program. If you only offer the loyalty program to a portion of your customers, you can compare the results to the other portion of customers who are not offered the loyalty program. In this case, you will still be able to compare the results to a previous period.

Why we think this is a Good A/B Test:

By experimenting on your A/B test, your results may surprise you. In terms of understanding what works for your customer base to re-engage with your product to get them into the habit of using your product more or buying it more on a frequent basis. From there, some variables you can experiment are what reward levels resonate with your customers the most, the frequency they need to buy your product before being able to redeem the reward, how long before their rewards expire, and what channels they engage with the most, whether it’s through your website (on desktop or mobile web), mobile app, email, push notifications, timing and so on.