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How to A/B Test a Loyalty Reward (Without Confusing Customers)

How to test two different loyalty rewards against each other without breaking the customer experience. The mechanics, the durations, and the metrics.

Loop Customer Team··6 min read
How to A/B Test a Loyalty Reward (Without Confusing Customers)

Testing is one of the highest-leverage activities in loyalty, but most people do it wrong.

How a wallet loyalty pass works in 4 clear steps
How a wallet loyalty pass works in 4 clear steps
Small changes in repeat visits create massive differences in lifetime value.
Strong visual explanation of the concept
Strong visual explanation of the concept
Real-world example that makes it easy to understand
Real-world example that makes it easy to understand
Supporting diagram or photo for clarity
Supporting diagram or photo for clarity
How to properly test loyalty rewards without confusing your customers
How to properly test loyalty rewards without confusing your customers
Simple testing framework that actually improves results over time
Simple testing framework that actually improves results over time

The right way to test

  • Test one variable at a time (usually the reward itself or the ratio)
  • Run the test long enough to get statistical significance (usually 6–8 weeks minimum)
  • Communicate clearly with staff and customers
  • Measure the right things (not just redemption rate — look at overall visit frequency and revenue)

Done well, testing can dramatically improve program performance.

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