Customer loyalty has a direct impact on a company’s bottom line. You’re probably investing lots of time, money and other resources to create positive experiences and loyal customers. But are your efforts working? Do your customers choose you over the competition? Below are five ways to gauge customer loyalty:
Look at their purchase frequency.
While customer loyalty encompasses far more than just the number of purchases made, repeat customersare a good indication of brand loyalty.
Are they engaged?
Are your customers engaging with your brand? Are they using your rewards program? Do they spend time on your website? Have they opted into newsletters or subscribed to your blog? These are all measures ofengagement, a good indication you have loyal customers.
Would they recommend you to a friend?
Brand advocacy is a crucial component of customer loyalty. Historically, Net Promoter Score was one of the best ways to gauge advocacy. But just because a customer says they would recommend your services, there’s no guarantee they have.
Give customers special offers or discount codes to share with friends and family. This makes it easy to not only track which customers have referred your brand, but also how many new customers are the result of a referral.
Go Beyond Net Promoter Scores.
Technology has created new ways for brands to measure customer loyalty and brand advocacy using the power of social media. Social sites go beyond Net Promoter Scores by closing the loop: Net Promoter Scores will tell you whether someone would recommend you. Social sites, like Yelp and Foursquare, will show you whether someone did recommend you.
If you’re not already, monitor what your customers are saying about you on social media sites like Facebook, LinkedIn and Twitter – note not only that they’re engaging with you, but whether their sentiment is positive or negative. Positive reviews and recommendations are proof of not only loyalty, but also advocacy and to continue the cycle you should explore ways to reward those that do advocate on your behalf
Still not sure if your customers are loyal?
Ask them. Try surveying them. Ask questions beyond just “How often do you use our products or services?” Ask about their experience with you. Ask whether they have ever recommended your services to a friend or colleague and why or why not?
There are a lot of ways to measure brand loyalty among your customers. Using a combination of these indicators and data can help you to understand your customers’ habits and preferences. From there, you can use that data and feedback to improve your program and create a better brand experience.