Spend Lift

Date created: Jun 9, 2021  •   Last updated: Jul 21, 2021

What is Spend Lift?

Lift in Spend is a loyalty metric that calculates the increased spend per customer or groups of customers across two periods.

Alternate names: Purchase Lift

Spend Lift Formula

ƒ Sum(Spend per customer in period 2) – Sum(Spend per customer in period 1)

How to calculate Spend Lift

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.

Spend Lift

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More about Spend Lift

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.