Measuring Loyalty Across Markets: Why Context Is Everything
How can you compare loyalty program performance in Denmark vs. Thailand—or even within the same region? It's a question more brands are asking as loyalty moves from a nice-to-have to a bottom-line essential. I had the pleasure to discuss this very topic with Iain Pringle and Radek Hrachovec on an episode of the Loyalty Podcast powered by The Loyalty Podcast . We explored what it really takes to benchmark loyalty programs across markets. The discussion unpacked great insights and reminded us that in loyalty, the numbers only tell part of the story.
Written by Pavel Los, a loyalty and CRM practitioner with 20+ years in marketing and loyalty, leading large-scale programs across local and international environments (including Shell and Oracle).
I help brands audit, redesign, and activate loyalty programs—improving time-to-value, engagement loops, and measurable ROI through practical frameworks, workshops, and hands-on consulting.
Published: Apr 7, 2025
The Problem With Averages
When we think of benchmarking, it’s attractive to rely on broad metrics —average transaction values, net promoter scores, or redemption rates. But here’s the rub: averages lie.
Imagine a taxi driver refueling daily versus a customer who visits once a month but never goes anywhere else. Who's more loyal? The answer isn’t in the transaction frequency—it’s in the context.
Without understanding who your customer is and why they behave a certain way, comparisons become meaningless.
Benchmarking That Actually Works
To make cross-market measurement meaningful, you need three essentials:
- Normalize Your Metrics
Start with definitions everyone agrees on. Whether it’s loyalty penetration (card swipes vs. total transactions) or cost per member, you can’t compare what you can’t standardize.
You need to normalize everything—cost per thousand, percentage penetration, all of it. Otherwise, you’re comparing apples to pineapples.
- Segment Before You Judge
Segment your customer base before drawing conclusions. High-value customers may act entirely differently from occasional ones. Radek stressed the importance of understanding wallet share and emotional attachment, not just transaction data.
“Some customers shop once a year. Others three times a week. Put them in one average, and you’re blindfolded.”
- Balance Internal Metrics With External Insight
Benchmarking reports like the MandoConnect European analysis help—especially to show which markets are easier or harder for loyalty to ‘work’. But they aren’t gospel.
Use external benchmarks as a guide—not a law. Your unique market dynamics, entry strategy, and customer experience delivery all matter.
Don’t Just Count—Ask
Loyalty isn’t just measured by what customers do—it’s rooted in how and why they choose where to shop. Radek’s approach is to: start by asking customers to list the brands or locations they shop at most often. This “shopping list” reveals their true priorities—not just preferences driven by habit or proximity, but the places they choose even when other options exist.
Then go deeper: Do they feel appreciated? Do they sense the brand recognizes their loyalty—not just with points, but with meaningful gestures and consistent care?
This level of emotional insight is often missing from dashboards. It’s not just about NPS or survey scores. Emotional loyalty—feeling seen, valued, and connected—requires human questions, not just hard data.
Actionable Advice for Loyalty Leaders
So, how can you benchmark better? Here’s a starter pack:
- Segment your base: Know who shops most, who spends most, and who’s emotionally invested.
- Standardize your definitions: Agree on what "active," "loyal," and "engaged" really mean.
- Blend analytics with research: Combine internal data with customer surveys to uncover blind spots.
- Use benchmarks as warning lights: Not absolute truths. If your numbers feel off, ask why.
- Stay curious: If loyalty KPIs don’t “feel right,” trust your instincts—and investigate.
Final Thought: Measure What Matters, In Context
Benchmarking loyalty across markets isn’t about finding a universal truth. It’s about using meaningful metrics, rooted in reality, to understand what’s working, what’s not, and why.
In the words of Ted Lasso (quoted in the episode): "Be curious, not judgmental." That’s how real loyalty insights begin.
Curious How Your Loyalty Program Stacks Up?
If you're navigating the complexities of cross-market benchmarking or rethinking how you measure loyalty—let’s talk. Whether you want to normalize your metrics, gain emotional insights, or simply pressure-test your KPIs, I’d be glad to explore it with you.
Contact me to start a conversation about making your loyalty measurement more meaningful, more human—and more effective.
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