Brand loyalty can feel like somewhat of a marketing mystery; you know it’s important, but it can be hard to define, and even harder to measure. But in reality, there are many things you can look at to track the impact of your brand loyalty efforts. And tracking those metrics will give you a great idea of not only how loyal your shoppers truly are, but also where you can optimize and improve your approach.
In this article, we’re exploring four key metrics to pay attention to when tracking brand loyalty, along with our favorite signs to look for to show you have truly loyal, happy customers.
Metrics to Pay Attention to Heading
It’s hard to know the impact of all the effort you’re putting into brand loyalty when it can often feel like an abstract concept. But even though loyalty can feel intangible, there are ways to track it—and paying attention to those insights can help you make smarter decisions about how to connect with shoppers.
These are the top four metrics you should pay attention to when tracking your brand loyalty.
Customer Retention Rate
This metric tracks the percentage of customers who continue buying from you over time, making it a great indicator of loyalty strength. A high retention rate typically signals that your brand delivers consistent value and creates experiences worth repeating.
Did you know it can cost up to 5x more to attract a new customer vs retaining a current one? Strong retention means your loyalty strategies are doing their job and saving you money.
Try tracking this monthly or quarterly to see how your loyalty program or any related marketing efforts are impacting repeat purchases over time.
Lifetime Customer Value (LTV)
LTV tells you how much a shopper is worth to your brand over the course of your relationship. Higher LTV usually signals that your most loyal customers are engaged, satisfied, and willing to spend more with you.
Paying attention to LTV helps you understand which customers bring the most value, allowing you to better segment and personalize your marketing. It’s also a powerful way to track the Return on Investment (ROI) of your loyalty program.
Net Promoter Score (NPS):
NPS asks customers how likely they are to recommend your brand to others, typically on a scale of 0–10. Loyal customers tend to have high scores, and scores of 9 or 10 are considered “promoters” (aka the people who will cheerlead your brand).
NPS is important because truly loyal customers don’t just keep buying from you, they also advocate for your brand. NPS gives you a clear read on emotional loyalty and brand enthusiasm.
To track it, make sure to survey your shoppers at regular intervals so you can gauge satisfaction over time and discover areas for improvement.
Redemption Rates:
Redemption rate tracks the percentage of loyalty rewards that are actually redeemed. This can give insight into how engaged customers are with the program and the perceived value of your loyalty offerings.
If shoppers are redeeming rewards, they’re participating, which means your loyalty program is resonating.
You might consider testing different types of rewards and tracking how redemption rates shift to help better tailor your rewards offering to consumer interest.
Note: you’ll only be able to track redemption rate if you have a loyalty program in place with redeemable rewards! Interested in starting a loyalty program? Contact us more for more information!
Signs of Loyal, Happy Customers
Metrics are powerful, but they’re not the only thing you can look at when tracking brand loyalty and the success of your loyalty program. To round out the picture, it helps to look to your shoppers, paying attention to certain behaviors and signals that show they’re genuinely connected to your brand.
To start, you might look at word of mouth. Satisfied customers tend to spread the word, with happy customers becoming brand advocates. Keep an eye on referrals, customer reviews, and general online buzz around your brand to see if your shoppers are turning into advocates. In fact, a strong loyalty program can directly fuel recommendations—70% of consumers say they’re more likely to suggest a brand to others if it offers a great loyalty program.
Repeat buying is another loyalty signal worth tracking. When shoppers not only return but also branch out to try other products in your portfolio, it’s a strong indicator that they trust your brand.
Finally, if you have a loyalty program, take a look at how shoppers are engaging with it. High activity, like checking for new offers, participating in digital games, or redeeming rewards, shows that your program has staying power and that your customers are truly engaged and invested.
Conclusion
Loyalty might feel elusive, but with the right data and strategy, it becomes something you can track, grow, and optimize. The metrics above can help you understand where you’re winning and where there’s room to improve.
Want to dig even deeper into brand loyalty and how you can build it? Check out even more of our loyalty articles here!