We are all missing a simple metric for standardised measuring of customer loyalty. It’s so important to track the evolvement before and after the introduction of new or improved loyalty scheme. Firms also need to benchmark themselves among peers. Net Loyalty Score is the indicator.

We have struggled to measure customer loyalty in retail for many years. Of course we know how to measure it precisely with analysis of transactional behaviour of long term target versus control groups combined with statistically significant surveys. That’s the right approach but quite demanding thus useless for a simple benchmark score.

Do we need another benchmark?

Inspired by wide adoption of NPS we created Net Loyalty Score. The goal is straightforward – set an widely adopted industry standard. Having a chance to deeply measure customer loyalty in various companies we’ve come up with a conclusion, people are able to recommend a brand but never repeat the purchase. So we need to ask them in a different way.

Anybody can measure Net Loyalty Score today 

The key is to ask active customers, make the average and deduct all Cold from the Loyal ones. NLS works like a thermometer, it’s absolutely simple to present and easy to understand. Every healthy company needs more engaged customers than those of indifferent.

We’ve tested NLS in a number of companies and we’ve come to the knowledge that pure loyalty starts at 50 points. These customers are not only verbally loyal but also their Share of Wallet is outstanding. Everything between 20 and 50 points is quite a good result. All figures below 0 signaling defunct loyalty, and should wake you up!

Let’s make wide loyalty benchmarking

Successfully done the measurement of NLS? Send us the result, we will create a benchmark of every industry and share it with you, so you can compare with peers.

„Only those who give back, can get hearts and loyalty of their customers.“