As a merchandiser, you want to create a loyal customer base that trusts your brand and values your products. But how can you measure and improve your brand loyalty using performance metrics? In this article, we will explore some key metrics that can help you understand and enhance your customer retention, satisfaction, and advocacy.
Customer retention rate (CRR) is the percentage of customers who make repeat purchases from your brand over a given period. It indicates how well you can keep your existing customers engaged and loyal. To calculate CRR, you need to know the number of customers at the start and end of the period, and the number of new customers acquired during the period. The formula is:
CRR = (End customers - New customers) / Start customers x 100
A high CRR means that your customers are satisfied with your products and services, and are less likely to switch to competitors. You can increase your CRR by offering incentives, rewards, discounts, or freebies to your loyal customers, as well as providing excellent customer service and support.
Manter a taxa de CRR alta é de suma importancia, pois, manter um cliente é mais complexo do que trazer um cliente novo. Tornar-se atrativo em seu servi?o ou produto é uma tarefa diária. Criar diferenciais para fidelizar é bem importante também. Você precisa ser único para o seu cliente.
Customer churn is the opposite of customer retention. It may look like a mere number, but it shows an inability of our business to satisfy our some customers. I tend to use customer churn rate more than customer retention rate as I find it easier to figure out. We can't act on all causes of churn rate, but we can identify key friction areas, identify their root causes, and build better execution with the mobilization of our teams. How about you? Do you have clarity on key friction areas in your business? How mobilized are your teams to address them?
O cliente do varejo esta cada vez mais multicanal, a reten??o é essencial para a sobrevivência das empresas pois conquistar um novo cliente é mais caro e necessita mais esfor?o do que manter um atual, mas “a vida como ela é” n?o tem sido bem assim, com uma alta competitividade entre as empresa e os formatos as estratégias de reten??o acabam sendo tratadas de forma marginal. O atributo principal para ter clientes tem sido o pre?o, o que n?o deixa de ser benéfico para o cliente, mas a conta n?o é barata e com margens sufocadas a experiência de compra acaba sendo desidratada com servi?os cada vez mais deficientes, estruturas defasadas, equipes mal preparadas e alto turnover. Vai vencer quem dedicar recursos e tempo para investir em reten??o.
CRR Is one of the Pilar for the business and you can always have something outstanding to keep your CRR on a higher side and also you need to evaluate how many new customers are now part of your CRR. CRR high level can only be achieved if your whole strategy is aligned with only and only customer satisfaction.
The single most important contributor to customer retention rate is honesty. I think we should always remember any customer chose you for a variety of reasons. Could have been price and service or any combination therein but they chose you. They don’t want to change vendors it’s a hassle. We all have service failures, no one is 100% a 100% of the time, so when that happens all they want to hear is three things. 1. What happened (they already know) 2. How are you going to fix this? 3. How are you going to prevent this from happening again? That’s all they want to know … if you are honest, how are you going to correct and how are you going to prevent. Forget all the fancy answers and diluted responses that give some vague solution.
Net promoter score (NPS) is a measure of how likely your customers are to recommend your brand to others. It is based on a simple question: On a scale of 0 to 10, how likely are you to recommend our brand to a friend or colleague? Respondents are then categorized into three groups: Promoters (9 or 10), Passives (7 or 8), and Detractors (0 to 6). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a range of -100 (all detractors) to 100 (all promoters). If the NPS is positive, it means that you have more promoters than detractors and consequently, a higher NPS indicates stronger brand loyalty. To improve your NPS, consider soliciting feedback from customers, addressing their pain points, and delivering value and quality.
I try to avoid subjective measures such as NPS. It is better to look at hard metrics like retention to understand what your consumer thinks. Any survey is biased by who responds -just the hardcore customers and/or the angry ones for example. Instead, it is possible to use surveying to help understand the "why" behind an.observed consumer behavior, i.e. churning after buying a specific product in the assortment.
NPS is very important for every service oriented business but how to use it effectively and efficiently makes a huge difference in your overall customer experience. It also helps you to monitor your increasing and declining trend and you can make strategic decisions accordingly which will surely lead to better transformation of results and customer satisfaction.
No metric is perfect. More importantly, we should always be aware of the reality behind a metric. A same result may hide different realities. NPS is convenient as it is simple to produce and widely used nowadays. It allows easy benchmarking with your competitors/industry. From my experience, NPS displays a real correlation with customer satisfaction. By simplifying the measure of customer satisfaction, it also allows clear communication to our teams as well as mobilization of all for better customer satisfaction.
I have worked a lot on improving NPS scores and have worked on projects where we can improve the brand perspective. Working as own label sales lead, NPS gave me totally different perspectives. It’s actually direct feedback from your consumers. One negative feedback can have ripple effect. I always believed if we could work on one negative feedback it can be voice or solution to many. It helps to bring various departments together to get desired result. If all teams work in collaboration you will definitely see a difference. It inculcates big time faith in sales team, customer feels being heard and most importantly it helps to drastically change brands confidence to compete in market. If NPS is well utilised you will definitely see result.
Net Promoter Score (NPS) is a measure used to gauge customer loyalty, satisfaction, and enthusiasm with your company. NPS is calculated by asking customers one question: “On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?” Aggregate NPS scores help businesses improve upon service, customer support, delivery, and product assorment for increased customer loyalty. As a business metric, NPS can help companies of all sizes organize around a mission or goal to increase their score by earning additonal loyal customers that can tracked and quantified as actual customers over time.
Customer lifetime value (CLV) is the estimated total revenue that a customer will generate for your brand over their entire relationship with you. It reflects how much your customers trust and value your brand, and how long they will stay with you. To calculate CLV, you need to know the average purchase value, the average purchase frequency, and the average customer lifespan. The formula is:
CLV = Average purchase value x Average purchase frequency x Average customer lifespan
A high CLV means that your customers are loyal, profitable, and likely to buy more from you in the future. You can increase your CLV by upselling, cross-selling, bundling, or personalizing your products and services, as well as creating loyalty programs, referrals, or testimonials.
By using these performance metrics, you can gain insights into your brand loyalty and identify areas for improvement. You can also use them to segment your customers based on their loyalty level, and tailor your marketing and merchandising strategies accordingly. By doing so, you can build a strong and lasting relationship with your customers, and increase your competitive advantage and profitability.
It projects future revenue, not just past revenue, by making assumptions about customer retention, purchasing patterns, etc. Factors used in calculating CLV include average purchase value, purchase frequency, customer retention rate, and the projected lifetime of the customer relationship. CLV helps provide guidance on what a business should spend to acquire new customers by quantifying what each new customer could be worth. Companies use CLV to segment better customers from less profitable ones and adjust marketing approaches accordingly. Higher CLV indicates that customers make repeat purchases over a long period rather than making a one-time purchase and not returning. Recurring revenue models through subscriptions.
Customer Lifetime Value (CLV) acts as a strategic tool for budgeting and forecasting, offering valuable insights for decision-making. By estimating the future sales or consumption a customer is likely to generate over their lifetime, CLV empowers businesses to allocate resources wisely and make informed decisions to maximize long-term profitability.
Entender o que seu cliente busca é a melhor forma de torná-lo seu melhor "publicitário". Brindes, descontos e a??es mal pensadas podem ter o efeito contrário de maneira instantanea. Conhecer seu cliente e tomar medidas personalizadas para cada tipo de compra, de clientes, de regi?es podem tornar seu negócio mais atrativo e mais rentável.
CLV is a critical piece of data to utilize as part of your marketing strategy. Understanding frequency and message timing adds optimizations to all of your marketing channels.
Honesty is the best. Do not sell price point . Most people do. Give several options . Truth about a product will bring all clients back to you. It will build your client base. Most cosmetic lines contain only 2-3 best sellers, mix it up. Sell the best of the best.
Quantify environmental, social responsibility and sustainability metrics around waste reduction, renewable energy use and volunteering initiatives. This allows branding your commitment to purpose-driven values shared by customers. The key is making performance metrics for satisfaction, service quality, usage trends and sustainability initiatives both transparent and central to your external brand messaging and loyalty program value proposition. This signals your brand puts customer experience first.
Rewards Programs: If you want to incentivize your customers to return to your website or store, a great strategy is to create a rewards or loyalty program. These programs typically offer discounts or coupons to repeat customers. Providing extra perks to loyal customers will encourage more engagement and purchases down the line.
One thing I've found helpful is to also consider return rates. Does your product remain sold? If a "loyal" customer returns his purchases at a high rate, that should be factored into their overall value to your brand. Dependent on your return policy (ex. do you pay for shipping?). Does it bloat your inventory? What's the cost of tracking that, etc? Another metric is exchanges. Although technically a sale, exchanges also have an associated management cost to factor in.
One thing that is key is to also look at which consumer segments are profitable and which ones are not profitable. This gives you insight into which consumer segments to focus on : the profitable ones. And they create more of these you can then create twin statistics to focus on in your performance marketing and CRM strategy. At the same time you want to sell as least to the ones that are not profitable (often those who buy at high discounts, are high returners and are targeted through performance marketing). These ones you want to exclude as much as possible from emails and performance marketing ((re-)targeting)
Objetivos de Fidelidade à Marca: Defina claramente que a fidelidade à marca visa aumentar as taxas de reten??o de clientes, impulsionar compras repetidas e aprimorar a satisfa??o do cliente. Indicadores-Chave: Identifique indicadores-chave como taxas de reten??o, frequência de compras e índices de satisfa??o do cliente para medir o sucesso dos objetivos de fidelidade. Metas Mensuráveis: Estabele?a metas mensuráveis, como aumentar a taxa de reten??o em X%, alcan?ar uma frequência de compras média de Y vezes ao ano e elevar os índices de satisfa??o para Z%. Essas metas ser?o referências claras para avaliar o desempenho.