Often businesses will measure customer loyalty through retention and satisfaction measures. But really, tracking measurements across customer behaviour, rather than customer attitude, gives a better reflection of whether your customers are ‘loyal’.
A loyal customer has a specific bias over what they’d prefer to purchase and from whom. Claiming your customer base is ‘loyal’, really boils down to your customer retention rates and your total share of customers relevant to your market. Not your market share.
For example, your customer retention rate may be relatively high. But if your customers are purchasing add-on or additional products from competitors, of which you offer, is your customer still loyal to your business and brand?
Retention and Share of Customers:
Ideally, both your customer retention and total customer share are essential to claiming you have a ‘loyal’ customer base.
Take an assessment of your businesses share of customers relevant to your industry and compare these figures with your customer retention rates. If you’re operating a high retention rate with a high share of customers, it’s fair to say you have a relatively loyal customer base.
Learn more about your customer retention rate and how to measure it.