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)