How does your business define and measure customer loyalty? Do you try to gauge a customer’s intention to keep doing business with you, look at how much they increase spend, or try evaluate a customer’s potential for advocacy? Loyalty can be mean different things to different organizations, as customer lifecycle goals vary widely across a myriad of products and services.
Just as the definition of customer loyalty varies, so do the metrics associated with prediction and management. A traditional way to predict loyalty is to generate a customer satisfaction score (CSAT), using post-sale and post-service survey / poll questions. A CSAT score puts a number to how a customer feels about a recent transaction with your brand or organization. How did we do today? How would you rate your experience with your recent support call? – are typical questions. A CSAT score is a useful measure of customer satisfaction, and allows for a wide range of questions to evaluate specific areas of a transaction. It may not be the best predictor of customer loyalty because it is narrowly focused on single experiences.