Creating and Measuring Customer Loyalty | TCXA

Customer loyalty is a key driver of business success. It helps companies retain their customers and generate repeat business, while also ensuring they attract new customers through referrals. On top of that, customer loyalty has been shown to boost sales by up to 30 percent. The question is: how do you measure customer loyalty?

What is customer loyalty?

Customer loyalty is the willingness of customers to repurchase from a brand even when cheaper alternatives are available. It can be measured by customer satisfaction, retention and advocacy which contribute to brand value.

The most important thing to remember about loyalty measurement is that it’s not just about getting your customers to recommend you more often or stay with you longer—it’s about turning those recommendations into opportunities for new business, as well as increasing revenue per existing customer over time.

Why is customer loyalty important?

Customer loyalty is important for your brand. Customer loyalty is an important part of the customer experience. Customer loyalty can help you grow your business.

How to build customer loyalty for your brand

Your brand should be built on your customers' loyalty.

The key to building customer loyalty for your brand is to create an experience that is memorable and engaging, so that the customer leaves feeling like they have had a positive experience with you. The best way to do this is by focusing on these elements:

Be genuine. This means being transparent about what you do and how you do it, from pricing models down to sales processes. It also means being transparent about who you are as a person or company—your values and vision for the future of your business. In order to truly connect with customers, they need to know where their money is going; if there's any doubt in their minds about what they're investing in (or whether this investment will pay off), they're likely not going to invest at all! This was one mistake made by American Airlines recently when they tried offering discounted flights via Twitter; while many users were able-bodied enough NOT TO NEED DISABLED ACCESSIBLE SEATING (which wasn't available), many others were upset by this lack of consideration shown towards those who did need such accommodations--and rightly so!

Create something interesting enough for people talk about without seeming over-the-top or ""too good."" Your advertising should tell them something relevant but not too specific--you want them talking about how great it was without giving away any secrets so no one else can take advantage of them either ;) And don't forget: content marketing works both ways: once someone finds out something awesome from reading your blog posts (like say...a free holiday bonus), then chances are good that s/he'll share those posts with friends via social media channels like Facebook or Twitter!

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Increase customer loyalty with customer experience

Customer loyalty is the key to your company’s success, and there are many ways you can increase customer loyalty. One of the most effective methods of building customer loyalty is through customer experience.

Customer experience is defined as “the sum of all interactions between a company and its customers across all touch points, over time, that lead to improved performance or increased retention” (Duarte, 2014). Therefore, in order for you to build long-lasting relationships with your customers, it's essential that they have positive experiences with your business every time they interact with you.

The single most important factor in building customer loyalty? It's not cash back rewards or discounts; it's great service. According to research conducted by CEB Inc., companies whose employees focus on delivering excellent service have much higher levels of retention than those who do not (Scheib & Morison-Szalkowski). The same can be said about using technology and automation; although these tools do make some processes easier for both businesses and consumers alike...

Benefits of customer loyalty

"Here's a list of just some of the benefits you can expect from high customer loyalty:

-Better customer experience -Higher retention rates -Higher lifetime value (LTV) for customers and increased revenues for your business. This means lower customer acquisition costs."

Measuring customer loyalty

Measuring customer loyalty is a key component of any business, and there are several important metrics that can help you track your progress. Some of the most common measures of customer loyalty include:

-Customer satisfaction index (CSI) -Customer retention rate (CRR) -Customer lifetime value (CLV)

Many companies use these metrics to determine how profitable their current customers are, as well as how much money they could lose if those customers left them for competitors. However, each metric has its own strengths and weaknesses when assessing customer engagement levels from one brand or product line to another within an organization's larger marketing portfolio.


Customer loyalty is important because it allows companies to build long-term relationships with their customers. It also helps them gain more revenue from these relationships. If you're looking for ways to improve customer loyalty, download our free guide!