Lift in Spend is a loyalty metric that calculates the increased spend per customer or groups of customers across two periods.
Say your customers spend about $100,000 in one month and $120,000 in the next month. Your Lift in Spend is $20,000. You should further segment this set of customers and layer in any discounts, loyalty programs, or marketing promos they might have been part of to fully understand what caused the lift.
When visualizing your spend lift, it is important to segment your data to get more meaningful insights. For example, you could use a bar chart to segment your Spend Lift by promotional campaign. Additionally, you can use a line chart to see how your Spend Lift changes over time. If you see that the metric is increasing steadily (every month, for example) you can infer that customers are spending incrementally each month.
Lift in Spend, sometimes referred to as just Lift, is an important loyalty metric, particularly in a discretionary spend type scenario. The tangible, financial benefits of loyalty for organizations come from two streams: 1) strategically growing customer purchases; and 2) improving customer retention. Lift is a significant driver of a strong loyalty ROI.
Like most loyalty metrics, the benchmark is highly variable based on the business, the industry, and also the customer segment. Best and high growth-potential customers are the key drivers of this metric as it is these segments of an organization's customer base whose purchases grow over time.
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