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What is Customer Loyalty? Part 2: A Customer Loyalty Measurement Framework

Last week, I reviewed several definitions of customer loyalty (see What is Customer Loyalty? Part 1) that are being used in business today. It appears that definitions fall into two broad categories of loyalty: emotional and behavioral. Emotional loyalty is about how customers generally feel about a company/brand (e.g., when somebody loves, trusts, willing to forgive […]

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Measuring Customer Loyalty in Non-Competitive Environments

Measuring customer loyalty, the degree to which customers engage in positive behaviors toward your company/brand, is essential for your customer experience management (CEM) program. We know that customer loyalty is key to driving business growth (e.g., increased revenue, market share).  Customers can exhibit many different types of loyalty behaviors toward a company, from recommending your company […]

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Customer Loyalty Measures Require Comprehensiveness and Clarity

Developing measures of customer loyalty using survey questions is a scientific endeavor; these loyalty measures are typically customers' self-reported likelihood of engaging in future loyalty behaviors. Because self-reported metrics are necessarily fraught with measurement error, I have argued for using psychometrics as a way of evaluating these "soft" metrics. Psychometrics helps you understand the reliability […]

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The Relationship Between Survey Response Rates and Survey Ratings

When soliciting feedback from customers through formal surveys, we only receive a percentage of completed or returned surveys. This percentage (number of people who answered the survey divided by the number of people in the sample) is referred to as the response or completion rate. In practice, I have seen response rates as low as […]

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Visualizing Product Quality and Customer Service Quality

I recently wrote about (and visually illustrated) the different types of customer loyalty in customer experience management programs. In that post, I showed how factor analysis can be used to help us understand the measurement and meaning of customer loyalty. In this week's post, I use factor analysis to illustrate the measurement of two primary touch points about […]

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4 Ways to Optimize Your Customer Survey

4 Ways to Optimize Your Customer Survey [INFOGRAPHIC]

Companies, in support of their customer experience management (CEM) programs, rely heavily on the use of customer surveys as a means of collecting customer feedback. An optimal customer survey maximizes the value of the survey to both the businesses who use them and their customers who take them. Specifically, businesses need customer surveys that provide […]

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Measuring Customer Loyalty is Essential for a Successful CEM Program

Customers can exhibit many different types of loyalty behaviors toward a company (e.g., recommend, purchase same, purchase different products, stay/leave), each responsible for different types of business growth. Furthermore, when asked about their loyalty behaviors via relationship surveys, customers' ratings of loyalty questions show that customer loyalty essentially boils down to three different types of customer […]

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Why do we use surveys to measure customer loyalty?

Customer loyalty is the leading indicator of business growth. As such, companies track objective measures of customer loyalty to help them monitor the health of the customer relationship. Some objective customer loyalty metrics are: Customer retention/defection rates New customer growth Average revenue per user (ARPU) Despite the existence of these (and other) objective metrics of […]

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