Customer Loyalty Measurement

Loyalty Metrics

Why should you care about customer loyalty? Loyal customers have these beneficial characteristics:

  • willingness to wait if preferred vendor’s products are in short supply
  • resistance to competitor’s blandishments
  • resistance to adverse expert opinion
  • willingness to pay a price premium
  • improved satisfaction
  • more likely to buy again
  • more likely to recommend
  • higher share of wallet

Our customer research will answer the question “how loyal are our customers?” by providing a benchmark of total customer experience metrics for your B2B or B2C customers against your specific competitors. We also answer the question “what brand and customer experience levers do we need to pull and what specific actions should we take to improve loyalty?” The insight obtained will enable you to focus on the critical few drivers to ensure the success of your loyalty program’s goals, such as improved customer acquisition, via positive word of mouth, improved customer retention, and profitable growth.


Metrics Linkage across Organizational Silos and Business Scorecards

We believe that understanding and measuring customer value is the key strategy, and that customer loyalty is the key metric.

  • Metrics linkage – We link your brand, marketing and customer metrics to revenue growth, profitability, and market share
  • Business scorecards – We create business scorecards which metrics provide a big picture view of your brand, marketing, and total customer experience functions; that show how your firm compares to the competition; and which metrics link to your business success measures such as revenue growth, profitability, and market share.
  • “What-if” scenario analysis tools – Our interactive tools help your strategic planning team set the correct target levels for critical brand, marketing and loyalty metrics. This addresses the business question: “In order to accomplish our revenue growth objectives for our planning horizon, what brand, marketing and loyalty metrics do we need to move and by how much?”
  • Analysis of your old data yields additional insights – We create hierarchical cause-effect models of business success which yield tactics for your improvement strategies and link low-level operational metrics to higher-level survey metrics in key improvement areas.
  • Modular measurement systems – We create a cascading system of metrics that allow you to drill down from high-level survey metrics to more granular operational metrics. This reduces the cost of measurement by eliminating duplication and overlap. It allows you to link operational metrics to high-level goals such as improved satisfaction and profitable growth.