6 Key Performance Indicators (KPIs) for Customer Loyalty

6 Key Performance Indicators (KPIs) for Customer Loyalty
Table of Contents

Table of contents

In times of increasing market transparency and growing competition, customer loyalty is a key success factor for companies.

While the focus is often on acquiring new customers, it is loyal customers who contribute to the long-term success of a company. Returning customers buy more frequently, are less price-sensitive, and recommend the company to others.

Clearly defined key performance indicators (KPIs) are needed to measure customer loyalty and manage it in a targeted manner.

But which metrics are particularly meaningful? Find out in this article.



🎯 The most important summarized:

  • Companies should use relevant metrics such as repurchase rate, customer retention rate, and average customer lifetime to assess customer loyalty.



  • The NPS measures willingness to recommend and is considered an important KPI for assessing customer satisfaction and loyalty.



  • An isolated KPI is not enough—only the interaction of various metrics provides a comprehensive picture of how loyal customers really are.



  • Those who regularly analyze key figures and derive concrete measures from them can specifically address weaknesses and improve customer loyalty in the long term.

Use the potential of easyfeedback

Arrange your personal appointment!

Easyfeedback Dennis Wegner

Table of Contents

Key figure: Repeat purchase rate

Customer satisfaction versus customer loyalty

This metric indicates how many customers have made repeat purchases within a specific period.

A high repurchase rate signals strong customer loyalty.

Formula:
Repurchase rate = (number of returning customers / total number of customers) × 100

Key figure: Customer Lifetime Value (CLV)

CLV measures the expected revenue that a customer will generate over the course of their relationship with the company.

A high CLV indicates loyal, profitable customers.

Influencing factors:
Purchase frequency, average order value, and customer retention period.

Key figure: Net Promoter Score (NPS)

The NPS measures the likelihood that customers would recommend a company to others.

It provides information about emotional loyalty and satisfaction.

0–6: Detractors

7–8: Passive

9–10: Promoters

Formula:
NPS = % promoters – % detractors

Survey Template Net Promoter Score NPS

Key figure: Customer retention rate

This KPI shows how well a company can retain its customers over a defined period of time.

Formula:
((Number of customers at the end of the period – new customers during the period) / customers at the beginning of the period) × 100

Key figure: Churn rate

This measures the proportion of customers who leave within a given period.

A low churn rate is a positive sign of customer loyalty.

Formula:
Churn rate = (number of customers lost / total number of customers at the beginning) × 100

Key figure: Customer engagement score

This score is based on customer interactions with the company, such as website visits, app usage, participation in surveys, or customer programs.

Would you like to learn more about measuring customer engagement

Learn more about measuring customer engagement

This way

Conclusion

Customer loyalty is not a matter of chance, but rather the result of targeted measures—and their success can be measured.

KPIs such as repurchase rate, CLV, NPS, and retention rate provide companies with valuable insights into the behavior and loyalty of their customers.

The correct interpretation and linking of these key figures make it possible to strengthen customer relationships, plan targeted marketing measures, and ultimately increase profitability in the long term.

Those who know their customer loyalty can invest in it in a targeted manner – and gain not only loyal customers, but also a decisive competitive advantage.


More about Customer Loyalty

Want to learn more about customer surveys and customer experience

Want to learn more about customer surveys and customer experience?

This way

Start your own survey project now or let us advise you!