Are you wondering how to measure customer loyalty and customer retention?
Use Voucherify free loyalty metrics calculator to measure customer loyalty and customer retention rate.
How many points in your loyalty program are actually redeemed for rewards.
High redemption rate indicates growing customer loyalty.
How many of your customers enrolled in your loyalty program.
If the number is lower than expected, perhaps you haven’t marketed your program enough?
How many points were collected and spent by how many customers
in a given timeframe to measure the overall customer engagement in your loyalty program.
Repeat Purchase Rate shows you how often your buyers come back to repeat a purchase.
Its value ranges from 0% to 100% (the higher the better).
Churn measures how many customers resigned from using your services.
5-7% annual churn is considered normal.
CLV estimates customer profitability. The aim is to predict how beneficial the relationship with a customer will be. The higher the score, the better.
Retention Rate is used to monitor business’ performance in attracting and retaining customers.
The higher your score the better. *Note: optimal retention rate varies between industries.
CAC is one of the most popular metrics used to measure customer loyalty and engagement.
In short, it says how much resources you need to invest to acquire a new customer.
This calculator is intended for everybody interested in measuring the loyalty of their customer base.
No, the calculator is free and you can use it without signing up.
We highly recommend investing in or creating your own CRM platform to keep track of your customers’ activities to easily calculate the loyalty metrics above.
Data suggests that 40% of revenue comes from returning or repeat purchasers and that the top 10% of your customer base spend 3x more than your average customer. Besides increase in revenue, loyalty marketing builds engagement opportunities throughout the customer lifecycle adding to trustworthiness and influence of your services.
If that's the case, there is a number of ways how you can improve your score. You can boost your social media presence and start a conversation between your brand and customers to create a faithful community or improve customer satisfaction rates. However, what we think is best is the loyalty program that rewards your customers and offers them great real value. Go here to learn more about launching a loyalty program with Voucherify.
They measure similar metrics, however participation rate tells you only how many customers signed up to your loyalty program, whereas the engagement rate excludes dormant loyalty program members and takes into account only those customers who actively take part in it.
There are many ways on how to boost your loyalty program performance. These include: offering new, personalised rewards that offer true value to your customers, conduct a survey to learn more about your customers’ impressions, or make point collection easier by rewarding not only purchases, but also activities of your customers. Check our ultimate guide on loyalty program best practices to learn more.
