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.