Customer Loyalty: Delight Your Customers So They Come Back

Customer loyalty is one of the most important factors in a business's success. Companies that have loyal customers have higher customer retention rates, and they also have more referrals. Loyal customers are also less likely to switch brands, and they spend more money with companies they like.

There are many ways to measure customer loyalty. One way is to look at the company's return on investment (ROI) for a given customer. The other way to measure customer loyalty is by looking at how often customers buy from your company and how much they buy when they do buy. However, Net Promoter Score is the most commonly used measure. The NPS is calculated by asking current customers to grade their customer experience on a scale of 0 to 10. After that, the accumulated scores are graded as one number between –100 and 100.

Often, a promoter will recommend your product or service without being asked, putting their reputation on the line for your brand. A passive probably liked your product, they may even mention it in the right context, but they are unlikely to personally endorse it. A detractor will actively dissuade people from using your product or service, often being louder than promoters.