Effective strategies to build your customer loyalty

Effective strategies to build your customer loyalty

Consumer loyalty is defined as the positive emotional connection that a repeat customer has with your brand.  It is the result of consistent positive interactions with your organization. Loyal clients may purchase from you regularly, communicate with you across many channels, and aggressively promote your business. However, there are a few key metrics you can use to measure customer loyalty through app analytics.

There are a few key metrics to measure customer loyalty.

  1. CLV: The first metric is the customer lifetime value (CLV). Customer Lifetime Value (CLV) is a metric that measures the total revenue that a customer will bring in during their time with your company.
  2. Churn Rate: Churn Rate is the percentage of customers who stop doing business with you over a given period.
  3. NPS: Net Promoter Score (NPS) is a metric that measures how likely your customers are to refer you to their friends and family. NPS measures how likely customers are to recommend your brand to others. You can calculate NPS by asking customers how likely they are to recommend your brand on a scale from 0-to-100.
  4. Customer Satisfaction: Customer satisfaction surveys are another way to measure customer loyalty. To calculate CLV, you need to know three things: the average purchase value, the number of repeat purchases, and the retention rate.

Why customer loyalty is important?

Satisfied clients are more likely to continue to do business with you, and they are more inclined to refer you to their friends and relatives.

Measuring client loyalty can allow you to understand how well your organization is performing and where you like to make improvements.

The Three R’s of Customer Loyalty

Consider the three R’s of customer loyalty to better understand the concept and how to build it. These principles might assist you in successfully establishing a loyal consumer base.


According to statistics a five percent increase in customer retention can lead to a 75 percent increase in profit. In deed 89%  say that good customer service plays a significant  role in customer retention.  Therefore, it’s important to keep your customers coming back. Offer loyalty programs, discounts, or other exclusive deals to show your appreciation with the help of customer retention platform. These are just a few ways to get started building customer loyalty. By understanding the three R’s, you can create long-lasting relationships with your customers and turn them into brand advocates.

Also read – Measuring customer experience with analytics


It is always prudent to reward loyal consumers. Therefore, consider old-fashioned punch cards: you receive a free sandwich for every tenth meal purchased. By making clients feel good about redeeming their rewards, you can foster loyalty. By rewarding the customers, you can retain consumers  with customized offers or donating to common causes.


Making customers feel a sense of belonging to a positive community has boosted consumer satisfaction and loyalty. The more insight into behavioral analytics you have, the better. With personalization and consistent interaction, you can establish a customer-centric campaign through behavioral segmentation.

What you need to know about Upsell Ratio?

To get a more accurate idea of customer loyalty, you can look at both repeat purchase rate and upsell ratio. By measuring how often customers come back to buy from you and how likely they are to try new products, you can get a well-rounded perspective on customer loyalty.

Both metrics have their advantages and disadvantages, so it’s important to consider both when making decisions about your business. For example, a high upsell ratio could indicate strong customer loyalty, but it could also mean that your product offerings are too limited. Meanwhile, a low repeat purchase rate could indicate that customers are unhappy with your products.

To calculate your customer loyalty index, you need to take the percentage of respondents who answered “Very Likely” or “Likely” to each question and subtract the percentage of those who answered “Not Likely.” The resulting number will fall somewhere on a scale from -100 (no one is loyal) to 100 (everyone is extremely reliable).

This metric is important because it can help you track changes in customer loyalty over time. If you see a sudden drop in CLI, it may indicate that something is wrong with your product or service. Additionally, CLI can help you identify which segments of your customer base are most loyal and which ones are at risk of churning.

Customer Engagement Score

We can determine CES through a variety of activities, such as:

– How often do they use your product/service

– How long do they spend on each session

– What actions do they take within the product/service (such as sharing content, inviting friends, etc.)

– Whether they’ve made a purchase or not.

A high CES indicates that customers are finding value in your product or service and are likely to stick around for the long run. On the other hand, a low CES could mean that customers are losing interest and may churn.

Here are some suggestions for increasing your customer engagement score:

– Make it simple for people to begin using your product/service.

– Create compelling content that entices customers to spend further time with your product/service

– Incentivize customers to take specific activities related to your product/service

– Make it as simple as possible for customers to purchase your product/service.

By increasing client interaction, you’ll be able to retain existing consumers and attract new ones. As a result, your business’s revenue and growth will increase. Therefore, begin monitoring CES immediately and discover how it can help you enhance your bottom line.  But how do you know if your loyalty program is working? You can do it by tracking the right customer loyalty metrics. Here are some essential metrics which you can obtain by using campaign automation tools to measure when you have a customer loyalty program.

The total amount of money a customer spends at your store over their lifetime. Customers loyal to your brand tend to have a higher lifetime value than one-time shoppers.

-Churn rate: This metric measures the percentage of customers who stop using your loyalty program within a certain period.

-Redemption rate: This measures how often customers redeem their points or coupons. A high redemption rate indicates that customers are engaged with the program and find it valuable.


Asking your customers questions about their experience with your product or service and what could be improved helps you understand how loyal they are. This measures the total amount of revenue a customer brings in during their entire relationship with your company. We hope the above mentioned factors helps you optimize your customer engagement strategy and improve customer retention rate.

appICE can help you device efficient customer engagement strategy by providing relevant data with the help of marketing automation tools


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