Brand Loyalty Metrics

Nugget of the week

Customer retention rate: Companies with strong brands benefit from repeat purchases by their existing customers. The customer retention rate is the percentage of customers retained over a specific period.

Customer lifetime value: Companies must evaluate how much they can invest in customer acquisition without compromising profitability. The customer lifetime value estimates the total net profit a business will generate from a customer throughout their entire relationship.

Net promoter score: Companies often invest heavily in advertising and promotions to attract new customers. The net promoter score measures the likelihood of existing customers recommending the brand to others, thereby lowering the company’s customer acquisition costs.