Customer loyalty is the measure of how your clients are dedicated to your products or services; it reflects your customer’s preference for your products over your competitors. If your clients are contented with your products or services are sure they stick to your brand. A loyal customer is not willing to switch to another brand; they are happy and contented with brands that meet their needs.
A customer is more likely to stick to a brand that delivers constituent quality and exceptional customer service. Most companies have a loyalty program that seeks to reward faithful customers as well as encouraging them to continue using the product. One of the best ways to rate customer satisfaction is by conducting a customer loyalty survey.
How to Measure Customer Loyalty
There are different ways of measuring customer loyalty. Each company/business must implement a customer loyalty strategy to measure their success and find areas that need improvement. The following are some of the ways you can measure customer loyalty.
Share of wallet: This is a measure that estimates what a customer spends in your category. You get this value by dividing the amount the customer spends by the amount they spend in the category.
Customer lifetime value (CLV): This is a measure of the average transaction value per customer less your cost per acquisition (CPA). This value informs you of how much you should spend to build customer relationships.
Sales per customer: You get this value by dividing your revenue by the number of customers.
Active customer volume: This indicates your active customers
Visit frequency. This delves into customer behavior, and it’s related to the share of wallet. A customer who visits you regularly to make purchases is a loyal one.
Recency: This indicates how often a customer visits your business when last did they purchase products or services from you? If customer recency is dwindling, then you have a reason to worry.
Spend per transaction: This is also referred to as the “weight of transaction.” It indicts the average amount a customer spends per transaction. If you note any changes in customer shopping behavior, you should investigate to know the cause.
Retention rate: This is a measure of customer loyalty that shows the number of customers who were active in the previous period and is still active in the current period.
Engagement index: This shows how you interact with your customers. This could be via offer redemptions, email clicks, or referrals.
Net promoter score: This measure indicates the likelihood of your customer recommending your product or services to another person may be a colleague or a friend.
General questions that should feature in a loyalty survey
- Can you please rate the services offered by our sales representatives.
- Please rate the quality of our products/ services.
- Can you recommend our services to your friends or relative?
- Do our products/ services meet your expectations?
- Do you trust our products/services? If yes, let us know why. If not, explain.
Elements of customer loyalty survey
The main aim of implementing a customer loyalty program is to know what your customers want and how you can serve them better, but unfortunately, most of these surveys fail to capture the key objectives. If you want to collect valuable information that can help improve your business, you must consider the three critical elements of a customer loyalty survey.
Specific customer loyalty indices questions
These are questions that provide a measurable response to customer loyalty. For example, ask “on a scale of 0-10, would you recommend our products to a friend or colleague? This is a measurement of overall customer loyalty. If results from this question are analyzed correctly, they can give a better picture of customer loyalty than just asking, “Can you recommend our products to a friend or colleague?
Loyalty driver questions
After gauging the overall customer loyalty, it’s essential to ask questions that will help you to understand what drives the customer to be loyal to your business. Some questions that can help to understand the drivers include:
“How fast does our customer care staff answer your calls”?
“Can you say our staffs are technically competent”?
Rate our documentation
These responses to these questions will assist you in understanding what drives customer satisfaction in your business and areas that need improvement.
How to improve questions
This set of questions help you to identify what is affecting customer satisfaction and what you can do to fix the problems. These questions can be specific or general. For example, you can ask, “Please highlight any area you think we can improve to serve your better”; this is a general question. You also ask specific questions such as “what do you think we can do to improve customer responsiveness?
Customer Loyalty Survey (Samples & Templates)
Uses of Customer Loyalty Survey
When you understand what your clients want, you can improve and tailor your services and products to meet and exceed your customers’ expectations. The following are some of the ways you can impellent this strategy. Ask the customer if they will like to do business with you once more. This question will help you to identify what could be wrong with your customers and solve the issue for your future clients.
According to customer loyalty statistics, referrals are one of the main ways a business gets new customers. If a customer is contented with your products or services, they’ll share this information with their friends, relatives, and even on social networks. If they’re not satisfied, the same will happen. Use Net Promoter Score to know the likelihood of your customer recommending your products or services to others. You can also look into what is driving the current referrals and make improvements to increase the referrals.
- What your customer like
Customer feedback is very critical in understanding customer loyalty. For example, you may be thinking customers are loyal to your business because of your products only to discover your shipping timelines attract them after interacting with them.
- What your customers dislike
In your customer loyalty survey, ask questions that will help you to understand what your customers don’t like about your business. With this information, you can identify the changes that will drive customers to loyalty.
Tips for a perfect customer loyalty survey
- Consider using closed-ended questions
You can start your questionnaire with the simple “yes” and “no” questions then proceed to the focused questions on your brand and products.
- Your questions should be specific
For example, when asking your clients about shipping, be specific. Don’t ask, “Did the product arrive in time”; instead ask, “At what time did the parcel arrive.”
- Be creative
Craft questions that will make the customer provide useful information about your business. For example, you may ask them, “what makes us different from our competitors. This information will be crucial in understanding your strengths and how to improve.
- Ask questions about your customer loyalty program
Get information on whether your customers are contented with the loyalty program in place or if you should make any changes to the program. For example, you may need to make some improvements to the rewards or the duration of retrieving the rewards.