The definition of customer loyalty can vary from company to company. That’s why measuring it can be a bit challenging. Many times companies forget that they need to take a step back and figure out what customer loyalty means. Is it someone who only shops with you for that specific need or is it someone who uses you frequently but may use other vendors if there is a special? Before you try measuring loyalty rates it’s important to figure your definition of what customer loyalty is first. Below are some ideas to help you get started in the right direction:
- Research how often your customer buys the products or service that you are offering them. Keep in mind that this doesn’t mean just from you, but from your competitors as well.
- Find out of they are buying from your competitors and how often.
- If they are buying from other vendors find out why they are buying from them. What more can you do to keep that business?
- What makes a customer loyal? Right down the exact definition so you have something solid to work from when you are creating programs and monitoring your customer loyalty.
- Remember, it’s not all about you. Sometimes people just like to shop around and there is nothing more you can do besides continue giving them exceptional service in hopes that they stop shopping around and only use your company.
In many cases studies are showing that it can be more cost effective to maintain loyal customers than trying to gain new customers. If you are trying to increase your loyal customers look into starting a loyalty program and reward them for partnering with your company. The more customers feel appreciated and valued, the more likely they are to continue doing business with you and recommending you to other people.
How do you measure customer loyalty?
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