Measuring Customer Loyalty

Published by Eric Maganga on December 10, 2019


There are many good reasons for employing customer loyalty programs. The main reason measuring customer loyalty is important, is less about feeling good and more about how building good relationships is good practice as well as good business. Less sentimental and more practical, you’ll want to establish yourself as a valuable partner to your customers as early in the process as possible. Read on for how to unlock this potential.

It comes down to the fact that if you provide value for them, they will reciprocate the value and having good relationships that you nurture with your customers will undoubtedly have long-term business benefits.

Building the relationships that will lead to customer loyalty and retention while preventing churn will benefit your business in many important ways.

Let’s dive right in.


Churn and how it relates to measuring customer loyalty and retention

In business, churn is when someone chooses to stop being a customer or unsubscribes to your service.This is a metric every business tries to avoid at all costs because obviously there is no situation where it is ideal to lose customers. The good thing is the solution to churn is within your control. Treating your customers like they are valuable to you sounds straightforward, but cannot be overlooked because good relationships will give you that boost in company loyalty that will increase retention.

One way to do that is customer loyalty programs

These programs are interactive and a great way to build relationships. Once the connection with your audience is established, you can get recommendations, good word of mouth and in some cases good press. 

Getting on good terms with your customers will facilitate a situation where they can become repeat customers as well as evangelists for your brand that bring you new business by telling their network about you.

Conversely, a bad review from a customer could be the reason that their peers avoid you and head over to the competition.

But how do you go about executing your customer loyalty plan?


Customer loyalty programs 

  • One way to implement Customer Loyalty Programs is a points-based system. So the more money your customer spends in your store, the more points they get that they can use to for example get a discount. digital, 
  • Another method you could use is paid monthly or yearly subscriptions that will provide your customers with exclusive benefits. 

But what should the benefits be?


Customer loyalty benefits

  • One type of customer loyalty benefit that is effective is when you partner up with another brand for co-branded customer rewards. This will expose you to new audiences and provide reciprocal value for both brands. Also an excellent way to drum up excitement and keep your marketing fresh.

If you decide to implement a points or subscription based customer loyalty program, the following is an important lesson to remember to ensure you boost company loyalty:

You have to provide enough value to make the deal worthwhile for your customer who will be spending their hard-earned money to earn extra credit with you.



In conclusion, if you can avoid a high churn rate and keep your customers happy you will set yourself up for repeat business as well as good word of mouth. This will lead to the great relationships and reputation that will be essential for 2020 and beyond.

Eric Maganga

Eric Maganga is a Copenhagen-based SEO & Content Specialist for