Tactical, Operational & Strategic Analysis of Markets, Competitors & Industries
Customer is King – the raison d'être of every business. It is therefore imperative for all businesses to listen to their customers.
Customer loyalty in particular is of immense value to any company. High customer loyalty indicates that your company is doing a key part of its job right. It also means that you have to try less hard to increase sales. You not only get repeat customers, the customers also talk about you with others they know, and these referrals lead to new customers. Your overall customer acquisition cost goes down.
o it is surprising that most companies don’t specifically measure customers’ loyalty and their propensity to give recommendations. The key tools for seeking customer inputs that are commonly used include customer satisfaction surveys, feedback forms, tracking social media, customer studies, and so on. But these don’t directly measure customer loyalty.
“Net Promoter Score (NPS)” is a metric that is being increasingly used globally to measure customer loyalty.