Posted inAll private sectors / Customer / Marketing

Customer loyalty index

Definition of this KPI:
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.

  • This KPI can be calculated as: Customers within the category with at least a second order / all customers within the category) * 100%
  • The KPI will be measured as: index
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Long-term relationship with profitable customers
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