Are You Tracking These Key Loyalty Metrics for Your Brand?

Data is everything when it comes to measuring the success of a loyalty program. This blog post looks into the essential metrics that your brand needs to measure based on the current digital landscape. The last one is an exclusive one, so read along!


Anjali Pillai

4 Min Read

August 01, 2023

It is no secret for business owners that customer loyalty programs bring in more revenue than any customer acquisition programs. By using loyalty management software, you can manage a lot of your loyalty programs and turn your customers into loyal ones. And by using the right marketing campaign software, you can strategize a communication plan to reach the right customers at the right time and maintain their loyalty toward your brand. 


Evangelist customers are the biggest brand ambassadors of any company and are a notch above any marketing campaign. This is why loyalty programs are crucial for brands to elevate their sales. According to Forbes, existing customers spend an average of 67% more than new customers.


But how do you measure the success of these programs? How do you understand what is working and what is not? Knowing the right metrics and data points crucial to your loyalty campaigns can not only improve your revenue but also build a stronger loyal customer base. And without these metrics, executing loyalty programs is like beating around the bush. 


Here are 8 important loyalty metrics that you need to track to grow your business.

1. How many of your customers are coming back?


Loyalty Metrics

The repurchase ratio, also known as the repeat purchase rate, is a key loyalty metric that measures the number of customers who come back to your business repeatedly compared to one-time purchasers. 


You can calculate this ratio, by dividing the number of repeat customers by the number of one-time purchasers within a specific period. So, if you have a total of 1000 customers and 375 of those come back to you for more goods/services within the same year, your repurchase rate is 375/1000 = 0.375 or 37.5%.


This metric provides valuable insights into customer loyalty and the effectiveness of your retention strategies. By increasing your repurchase ratio, you can foster long-term customer relationships and enhance revenue stability. These repeat customers will not only return to your business but will also be the first ones to try any new offering.

  2. Are your customers buying additional items from your business?

The upsell ratio indicates the percentage of customers who purchase additional or upgraded products from your business. When customers engage in upselling, it reflects their trust and satisfaction with your brand. 


To calculate the upsell ratio, divide the number of customers who have made an upsell purchase by the total number of customers. By monitoring this metric, you can also identify opportunities to provide personalized recommendations, enhance customer experience, and increase average order value.


To understand upsell ratio calculation better, let’s take the example of an online fashion retailer, Fashion Paradise. For a given period, they had a total of 10,000 customers. During this period, 2500 of their customers not only purchased their product but also added items to their cart or opt for a higher-priced item.


In this case, the Upsell Ratio = (Number of customers who made upsell purchases / Total number of customers) * 100 

Upsell Ratio = (2,500 / 10,000) * 100 

Upsell Ratio = 25%

3. Revenue metrics that is attributed to the entire relationship with a customer

Customer Lifetime Value-Loyalty Metrics

Imagine this, a single customer walking through your door, embarking on a lifelong adventure with your brand. Customer Lifetime Value is a comprehensive metric that quantifies the total revenue attributed to the entire relationship with a customer, including future purchases. It helps you understand the long-term value a customer brings to your business. 


By calculating CLV, you can segment customers based on their value and tailor your loyalty strategies accordingly. This metric enables you to focus your resources on high-value customers, optimize retention efforts, and maximize profitability.

4. Benchmark your performance with CLI


Customer Loyalty Index
The Customer Loyalty Index (CLI) is a standardized tool used to track customer loyalty over time. It combines various metrics, such as customer satisfaction, retention rate, and likelihood of referral, into a single score. CLI provides a holistic view of customer loyalty and enables you to benchmark your performance against industry standards. By regularly assessing CLI, you can fine-tune your strategies, heighten loyalty, and create extraordinary customer experiences.

5. Track customer engagement with a set score

Customer Engagement Score

The Customer Engagement Score assigns each customer a score based on their activity and usage of your services. It takes into account metrics such as website visits, app usage, social media interactions, and email engagement to create a score. By measuring customer engagement, you can identify highly engaged customers who are more likely to be loyal advocates for your brand. This metric helps you personalize marketing efforts, nurture relationships, and encourage ongoing customer interactions.

6. How many are actually redeeming your loyalty offers? 

Redemption Rate

The redemption rate measures the effectiveness of your loyalty program by understanding how many are using your loyalty offers. 

It can be calculated by dividing the total number of points or coupons redeemed by the total points or coupons issued. A high redemption rate indicates that customers are actively participating in your program and finding value in the rewards you offer. By tracking this metric, you can assess the appeal and relevance of your loyalty program, optimize reward offerings, and drive repeat purchases.


7. Number of customers enrolled in your loyalty program 


Participation Rate

The participation rate measures the number of customers enrolled in your loyalty program as a percentage of your total customer base. It helps you gauge the program’s attractiveness and adoption among your target audience.


A high participation rate suggests that your loyalty program resonates with customers and incentivizes their ongoing engagement. By monitoring this metric, you can identify opportunities to increase program enrollment, refine program benefits, and improve customer retention.

8. Track Emotional Loyalty with Brierley’s Loyalty Quotient

Emotional Loyalty Quotient

 Capillary’s acquisition of Brierley, an industry leader in the loyalty space has paved the way for more brands to measure emotional loyalty. In the realm of loyalty metrics, the Brierley Loyalty Quotient (BLQ) stands as a unique and insightful tool. By utilizing a concise and non-intrusive customer survey, comprising 14 thoughtfully crafted questions – 7 focusing on rational aspects and 7 delving into emotional aspects – the BLQ captures the essence of how customers truly feel about a brand. Through its innovative scoring algorithm, the BLQ distills the survey responses into a comprehensive index score that encompasses rational loyalty, emotional loyalty, and combined customer loyalty metrics.


The beauty of the BLQ lies in its ability to provide valuable insights not only about your brand’s performance but also about how it compares to competitors. What sets it apart is that it achieves this without requiring access to its customer database, sales data, or other proprietary metrics. With the BLQ, you can gauge your brand’s standing within the competitive landscape, uncovering strengths and areas for improvement.



By tracking these metrics, such as repurchase ratio, upsell ratio, CLV, CLI, customer engagement score, redemption rate, and participation rate, you can gain valuable insights into the effectiveness of your loyalty marketing efforts. These metrics enable you to optimize your strategies, foster customer loyalty, and drive business growth. 


While the customer insights platforms can help you understand your customers better, these metrics can help maintain a long-term relationship with your customers.


Remember, consistent measurement and analysis of loyalty metrics empower you to make data-driven decisions that positively impact your bottom line. Start measuring these metrics today and unlock the true potential of your loyalty marketing initiatives.

Aauthor Name

Anjali Pillai

With a knack for creating engaging content and crafting effective social media campaigns, Anjali wants to make it her mission to leverage the power of content as a strategic marketing tool for businesses. While she is not working, she is either binging movies or writing about them on her blog.

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Are You Tracking These Key Loyalty Metrics for Your Brand?

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