tips to measure customer loyalty

Tips tomeasure

Customer Loyalty

Existing Customers Matter

It’s 7x more expensive to acquire new customers

Sources: “Fastest Way to Lose Customers.” KISSmetrics blog.Murphy, Emmet and Mark Murphy. Leading on the Edge of Chaos: The 10 Critical Elements for Success in Volatile Times.

Did you know...

decreasing costs by 10%

A 2% increase in customer retention has the same effect as

Loyal Customers = Success

Retention

Enrichment

Advocacy

There are three ways to categorize customer loyalty:

1. 2. 3.

What is Retention Loyalty?A customer's willingness to

Without these satisfied customers, there’s no base of customers making repeat purchases.

remain because they value your product and/or service.

Measuring Retention Loyalty

Customer Surveys

Attrition Rate

Customer Sentiment

No single metric can measure retention, but a combination of these

methods will help:

1. 2. 3.

What is Enrichment Loyalty?

Measure customer satisfaction first, then take

Driving repeat or

additional purchases of a product and/or service

advantage of upsell and cross-sell opportunities.

Measure customer spend year-over year

Determine if spend per customer has

increased or decreased

The higher the increase, the greater your

enrichment loyalty

Measuring Enrichment Loyalty

What is Advocacy Loyalty?Customers who refer your business to others -- a powerful tool!

On average, a business

Source: Keck, Chad. “What is a customer recommendation worth?” Promoter.io. May 28, 2014.

generates roughly 60% of its new customers from the recommendations of the existing customer base.

Measuring Advocacy LoyaltyMeasure what customers say they

Net Promoter Score (NPS)

Social Media Activity

1. 2.

will do and what they actually do to promote your business using:

Drive Long Term SuccessInstill best practices that drive loyalty by

Measuring key indicators

Identifying loyal customers

Tracking improvements over time

1. 2. 3.

Want more on CX?Download the Position Paper

The Power of Customer Experience: Why Improving the Customer Experience is

So Valuable (And How to Do It)