Tag Archives: loyalty

Customer loyalty index

Definition:
Percentage of customer retention within customer categories. Retention means there is at least a second deal after the first one. 100% means all customers within the category did business with the company more than once. Loyalty can be specified in other ways, according to the type of business or the organisational goals. IE: the numer of customers that places an order every quarter.

Calculation:
Customers within the category with at least a second order / all customers within the category) * 100%

This KPI is measured as: Index

Interpretation of results: Higher Is Better

Strategic objective:
Long-term relationship with profitable customers