Measuring customer loyalty: Why it matters and how to achieve it

Measuring customer loyalty Why it matters and how to achieve it
Table of Contents

Table of contents

In a world where products and services are becoming increasingly interchangeable, customer loyalty is becoming a decisive factor for success.

Loyal customers not only buy more often, they also recommend your company to others and are less price-sensitive.

But how can customer loyalty be measured? And which key figures provide reliable information about customers’ emotional attachment and behavior?

In this article, we take a look at the most important methods and key figures for measuring customer loyalty.



🎯 The most important summarized:

  • Customer loyalty is reflected not only in repeat purchases, but also in recommendations and long-term customer relationships. It can be measured specifically in order to improve customer retention.



  • The NPS is one of the best-known methods for measuring loyalty. It is based on the question of how likely a customer is to recommend the company to others. It quickly provides a comparative value.



  • In addition to NPS, methods such as repurchase rates, customer satisfaction surveys (CSAT), customer retention rates, and customer lifetime value provide a more comprehensive picture of loyalty.



  • Customer loyalty can be improved when companies regularly seek feedback, take it seriously, and act on it. Transparent communication and consistent implementation are essential in this regard.

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Table of Contents

Why is customer loyalty so important?

Customer loyalty is more than just repeat purchasing behavior.

It reflects a customer’s trust, satisfaction, and emotional attachment to a brand.

Studies show that it is significantly cheaper to retain an existing customer than to acquire a new one.

In addition, loyalty increases customer lifetime value (CLV) while reducing marketing costs.

The most important metrics for measuring customer loyalty

1st metric: Net Promoter Score (NPS)

The NPS is one of the best-known and most widely used methods for measuring customer loyalty.

The question

“How likely are you to recommend our company to a friend or colleague?”

is asked on a scale of 0 to 10.

The answers can be divided into three groups: promoters, passives, and detractors.

The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

Survey Template Net Promoter Score NPS

2nd metric: Repurchase rate

The repurchase rate shows how many customers buy from a company again.

It can be derived from sales data and provides a realistic insight into actual customer behavior.

3rd metric: Customer retention rate

This key figure indicates how many customers remain active over a certain period of time.

It is particularly relevant in the subscription or service sector.

4th metric: Customer Lifetime Value (CLV)

CLV describes the total economic value that a customer generates over the course of their relationship with the company.

It is a long-term indicator of loyalty and profitability.

5th metric: Customer Satisfaction Score (CSAT)

Although CSAT primarily measures satisfaction, it is an early indicator of potential loyalty.

Satisfied customers are more likely to remain loyal.

Survey Template Customer Satisfaction Score

Methods of collection

Key figures only provide valuable insights if they are collected in a well-thought-out and systematic manner.

Here are the most common methods for effectively measuring customer loyalty:

Method 1: Online surveys and feedback forms

Online surveys are one of the most efficient methods for obtaining direct feedback from customers.

Tools such as easyfeedback make it easy to create questionnaires that can be sent out automatically.

Popular question types:

  • NPS questions
  • Satisfaction scales (1–5 or 1–10)
  • Open-ended questions for improvement
Advantage: Scalable and automatable
Disadvantage: Response rate depends heavily on design and timing

Method 2: In-app or onsite surveys

Digital products and e-commerce platforms can survey customers directly while they are using them — e.g., via pop-ups, chatbots, or feedback buttons.

This method is particularly effective because it is context-related.

Example: After completing a purchase, the question appears:

“How satisfied are you with your shopping experience?”

Advantage: Higher relevance due to situational relevance
Disadvantage: Risk of disrupting user experience if poorly implemented

Method 3: Customer interviews and focus groups

Personal conversations provide deeper insights than standardized questionnaires.

Targeted interviews with individuals or groups allow for a better understanding of emotions, motivations, and potential for improvement.

Advantage: No active customer contact necessary
Disadvantage: Only some customers express their opinions publicly

Method 4: Social listening and online reviews

Brand loyalty can be indirectly observed by analyzing customer opinions on social networks, review portals, and forums.

Tools such as Brandwatch, Talkwalker, and Google Alerts help to analyze mentions.

Advantage: No active customer contact necessary
Disadvantage: Only some customers express their opinions publicly

Method 5: Evaluate transaction and behavioral data

Loyalty is also reflected in purchasing behavior: repeat purchases, shopping cart value, cancellation rates, and the use of customer loyalty programs are valuable indicators.

Modern CRM and analytics tools such as HubSpot, Salesforce, and Google Analytics provide the necessary data here.

Advantage: Objective measurement of real behavior
Disadvantage: No conclusions can be drawn about emotional loyalty
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Conclusion

Customer loyalty is measurable—and should be.

Companies that focus on loyal customer relationships benefit in the long term from more stable sales, positive word of mouth, and greater resilience to market changes.

The key lies in combining the right metrics, continuous analysis, and genuine interest in customer needs.

After all, loyalty does not happen by chance—it is the result of active customer focus.


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