7 metrics to measure loyalty!
4th August 2022
Written by Tom Peace
Some argue that loyalty is a general feeling of support and alliance and therefore can’t be directly measured however, we’d disagree!
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Check out 7 of the top metrics to measure loyalty:
Net Promoter Score (NPS)
The NPS is a tool that helps gauge customer satisfaction. It asks people how likely they are to recommend your company to someone they know.
Repeat Purchase Rate (RPR)
The RPR is a simple yet effective metric that measures the number of customers who return after the first purchase.
This is similar to RPR, but as loyal customers can be more open to additional purchases from you, upsell ratio can help gauge customer loyalty.
Customer Retention Rate (CRR)
Customer retention rate includes your ability to attract new customers, as well as keep existing ones.
Customer Churn Rate (CCR)
The other side of CRR, CCR measures all those customers that you have lost over a certain period of time.
Customer Lifetime Value (CLV)
CLV is the profit margin you can expect to earn during your entire relationship with an average customer. This is ultimately what helps your bottom line.
Customer Loyalty Index (CLI)
CLI is a tool that can help you track customer loyalty over time. It involves a survey with three questions aimed at gauging NPS, repurchases, and upselling:
1. How likely are you to recommend [company] to a friend?
2. How likely are you to buy from [company] again?
3. How likely are you to try [company]’s other products or services?