Customer loyalty: how to gain and measure it

by OsmanD42 - 17th April 20:04

Loyal customers tend to spend more and are also less price sensitive. According to the annual Edelman Trust Barometer 2023 report, trust is one of the most important reasons why customers buy products or services. 59% of consumers are willing to make a purchase because they trust a brand.

How to measure customer loyalty
The Customer Loyalty Index or Net Promoter Score (NPS) is a measure of customer commitment to a product or company. It is also known as the index of willingness to recommend a product. The metric shows the percentage of customers who are willing to recommend your product.

Ask your customers if they would recommend you on a ten-point scale. The classic scoring system in an NPS survey:

• 0 to 6 - critics. They leave angry reviews about you, and if they haven't found a replacement for you yet, they will soon.
• 7 to 8 - Neutral. They're fine with you, but as soon as they see someone better, they'll be happy to leave.
• 9 to 10 - Promoters of your brand or product. Your long-term customers, the "freelance marketers" of your business. It's easier to get in touch with them, they often leave positive feedback and are responsible for word of mouth.

Loyal customers are the backbone of any business. They are the ones who form opinions about the company, write compliments, recommend to family and friends, prefer your product and are the last to go to your competitors. Value them like gold: they are true brand advocates. Loyal customers build trust in your company. People have little faith in advertising, but they do trust other people.

PAnDiKubiz specialists are ready to advise you on how to increase customer loyalty and increase the number of promoters and advocates of your brand.