10 Ways to Measure Customer Loyalty

What is one efficient way to measure customer loyalty to your brand?


To help you measure customer loyalty toward your brand, we asked leaders in customer service and marketing professionals this question for their best insights. From developing competitor-centric surveys to monitoring website traffic, there are several tips that may help you measure your customers’ loyalty.


Here are 10 ways to measure customer loyalty toward your brand:

  • Develop Competitor-Centric Surveys
  • Track Customer Referrals
  • Ask Customers to Rate your Services
  • Analyze your Customer Retention Rate
  • Measure Customer Lifetime Value
  • Use Customer Engagement Metrics
  • Ask for Feedback via Social Platforms
  • Stop the Churn
  • Don’t Invest Time in Customers that Aren’t Interested
  • Monitor Website Traffic


Develop Competitor-Centric Surveys

Surveys are one of the most reliable methods in gauging customer loyalty and sentiment toward your brand. That being said, not all surveys are created equally. To get a proper read on these particular metrics, you must be strategic with the questions that you ask. If you only explore the customers’ experience with your service, it’s harder to frame your position in the market—let alone your customers’ propensity to shop elsewhere.

The most optimal approach is to make explicit mention of your competitors, and use them to guide your line of questioning. Be sure to ask open-ended questions, as this gives the customer plenty of room to voice their thoughts. Request their views towards competing brands, and ask under what circumstances they’d choose to shop elsewhere. You can use their feedback to retrace the customers’ steps and determine the exact conditions which would lead to their loyalty. This allows you to not only measure but also facilitate customer loyalty.

Max Wesman, GoodHire


Track Customer Referrals

In today’s economy, customer loyalty can be crucial for a company’s survival, which is why it’s more important than ever to continuously measure that loyalty. One excellent way is to monitor customer referrals. If one of your customers is pleased with your products or services so much that they share their experiences with others, then you may just have a customer for life. So, be sure to reward that loyalty with stellar customer service and client appreciation.

Carrie McKeegan, Greenback Expat Tax Services


Ask Customers to Rate your Services

A simple way of measuring customer loyalty is to ask the customers to rate your services and products on a scale of 1 to 10. These ratings can be done on any scale, though the most popular ones are ten being the highest and one being the lowest. Keep a tab on the ratings and see which products are getting the highest and lowest ratings. You will then know which products you need to work on and which ones suit your customers best.

Customers are the reason a business exists in the first place, so it’s essential to stay in tune with their needs, changes in their outlook, and the general ambiance of their minds. They could give you a heads up and save your business just by telling you what they have in mind. Metering customer loyalty will give you greater insight into how your customers feel about your services.

Saneem Ahearn, Colorescience

Analyze your Customer Retention Rate

Customer Retention Rate, or CRR, is one of the most essential metrics you need to measure customer loyalty to your brand. CRR reflects the percentage of customers that stay loyal to your brand over a period of time. Essentially, looking at the CRR will show you what areas you need to improve in customer retention. For instance, you will know if you need to leverage more interactions with your customers through social media, or if you should change up your services to meet your customers’ needs.

Rich Rudzinski, Drivey


Measure Customer Lifetime Value

The best way to measure consumer loyalty is to track customer lifetime value. For example, with in-depth consumer data, marketers can target campaigns more effectively, and inventory specialists can ensure enough product is in stock during the high seasons.  Devoted customers will purchase your products repeatedly—having an idea of the average dollar amount a customer like this will spend in a lifetime helps inform processes across your organization.

Cesar Cruz, Sebastian Cruz Couture


Use Customer Engagement Metrics

Purchasing rates can be inconsistent but measuring customer engagement can provide an accurate picture of customer loyalty. There are various ways customers can engage with a brand, either by website visits, social media response, in-person visits, or a combination of any or all of them, and measuring this can give a clearer picture of your customer brand loyalty.

Customer engagement measures items such as visitor frequency, time of engagement, and core actions completed, as a way of determining whether a customer is passive or is actively loyal to your brand. In addition, this measurement technique, also known as People Metrics, can demonstrate a direct relationship between engagement rates, and the percentage of return customers who have varied purchases. By using customer engagement metrics, you will be able to understand your brand loyalty success and have the ability to improve it.

Matt Miller, Embroker

Ask for Feedback via Social Platforms

Just ask. Be proactive in incorporating simple quick questions into your social media strategy. People are scrolling anyway and if they love your brand and are loyal to you, they’ll be more than happy to stop to tell you so in between sharing cute puppy pics. Ask customers how likely they are to stay with your brand or switch to a competitor. Then respond to comments right away. As a bonus, you’ll gain new customers when they see how responsive you are to your current fans. Don’t ever be afraid to ask!

Jeff Goodwin, Orgain


Stop the Churn

Take a look at your customer churn rate. Take the number of customers you lost and divide it by the number of customers you had, to calculate said rate. Most suggest doing so on a month-to-month basis. The time period matters because it will help you understand how to improve and hopefully minimize churn. You’ll be able to see which products said customers purchased, what you were offering at the time, and perhaps why some customers stopped purchasing.

Erin Banta, Pepper


Don’t Invest Time in Customers that Aren’t Interested

We measure customer loyalty to our brand through the Repurchase Ratio. It gives us the number of customers who have repeatedly purchased from our store. This number is divided by one-time buyers from your store. Once we have this ratio, we can make changes to our marketing strategy accordingly. This targets our marketing efforts and helps us save on resources.

We don’t spend time on consumers that aren’t interested, which helps save us on operating expenses. Although, we have realized that different consumers have diverse shopping patterns. They might either be seasonal buyers or just interested in one specific product.

Recently, we have incorporated AI into our business strategy. We customize our engagement channels, which consist of consumers’ buying history, and offer omnichannel solutions. It allows us to understand customer behavior in-depth and design marketing campaigns accordingly.

Erin Neumann, Sacred Space Organizing

Monitor Website Traffic

Website traffic is the best measure of customer loyalty to a content or information portal. This is the top base metric we consider because our dating and relationship portal’s number of visitors directly reflects our potential affiliate earnings. Our brand earns their trust and loyalty when customers return because of our helpful content. Having higher organic or unpaid traffic means more chances to promote affiliate products to consumers and more revenue for our company through different digital marketing strategies.

Lorraine Daisy Resuello, Connection Copilot

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