To measure your loyalty rate, take the number of customers who have bought more than four times in a year and divide it by the number of unique customers in the same period. This gives you the proportion of customers who have bought more than one type of product divided by customers who have bought only one. Having an idea of your RPR allows you to understand what turns certain customers into repeat buyers and apply that knowledge to future campaigns for new customers. Customer lifetime value is a measure of how valuable the customer would be to the company over the entire lifecycle of the relationship.
One way to think about behavioural and emotional loyalty is that the former describes how customers act, while the latter describes how they feel. From what I have seen, more and more brands are exploring the use of loyalty programmes to retain customers. The trust they have earned through their customers' past experiences has been reflected in their other product offerings. All you have to do is divide the number of customers who extend at the end of their first contract by those who cancel.
The more different the added product is from the first one, the more significant the customer loyalty indicator will be. See also our posts on measuring customer satisfaction, measuring service quality, the most important customer service metrics and customer service KPIs. Most NPS tools work by importing a list of your customers' contact details and sending the questionnaire by email. Never before have customers had such easy access to other purchasing options if they are dissatisfied with a company or if they simply see what they think is a better offer elsewhere.
By adding twice the standard variation to the average time, you will have captured 95 per cent of your repeat customers. Secondly, long-term customers are more likely to spend more money with your company than a new customer. You can calculate your final NPS score by subtracting the number of detractors from the number of promoters, which gives you an idea of how many customers would be willing to positively recommend your shop. Like NPS, customers choose a value between 1 (wouldn't miss you at all) and 10 (couldn't do without you).
