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Loyalty / Promotions

A reward works best when it is relevant to the customer.

The problem

Broad promotions can consume budget without changing useful customer behavior.

The signal

Available loyalty membership, campaign eligibility, coupon assignment and purchase behavior.

The action

Use supported promotions/coupon workflows to build a targeted member or retention campaign.

The measurement

Coupon assignment/redemption, loyalty engagement, incremental purchases where measurable and economic return.

A practical question

Which eligible members need a reason to return, and what offer makes sense?

Key terms

TermDefinitionCaveat
Campaign ROI (Attributed incremental contribution minus campaign spend), divided by campaign spend, where incrementality is supported. If only attributed sales are available, call it reported return, not ROI.
Retention Customers active in a defined cohort at a later period, divided by the eligible original cohort. The cohort and what counts as purchase activity must be clear.
Redemption rate Definition to be supplied by Analytics. The source documents name redemption as a measure but do not define it.

What IDEAL could add

Governed candidate action recommendations based on rule constraints and supporting evidence.

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