The goal of all businesses is to make money, and track metrics to measure performance over time. To sustain a profitable business, it's necessary to build and maintain a strong connection with customers. Customer retention is cheaper than acquiring new customers and customer loyalty programs are a great source of data. Tracking customer engagement rate and lifetime value are important metrics to understand customers needs and wants.
Calculating customer retention rate is done by subtracting the number of new customers from the total customer base and dividing that result by the number of customers at the start of the period. Members of loyalty programs are more likely to increase their spending, making way for more optimal and effective engagement. Customer lifetime value is an estimate of the average revenue a customer will generate throughout their time using the product or engaging with the brand.
By tracking the metrics highlighted in this article, companies can ensure that their marketing efforts benefit their bottom line. Resources such as measuring customer LTV, marketers' top approaches and challenges, and how to measure and improve B2B customer loyalty can help build an effective customer retention plan and increase customer loyalty.
Measuring the Immeasurable: Customer Loyalty Metrics
Don't worry ... it's FREE!
Marketers who work for B2B organizations with complete and high-quality data are more likely to be satisfied with their lead scoring and to believe they will meet their marketing goals, according to recent research from Anteriad.
Uncover five LinkedIn Ads metrics crucial for B2B lead gen success. Enhance your LinkedIn strategy and drive better campaign results and ROI. Learn more.
Unlock the potential of your sales and marketing teams with key smarketing metrics. Discover how alignment can propel your business forward. Learn more now.
Key business metrics are there to tell you how well you're meeting customers' expectations and gaining conversions. One of the most important metrics to measure is customer lifetime value (CLV). See why it matters and how to calculate it.
In the current environment, the pressure is on all marketers to produce results. Here are three predictions for how the coming year's standout content marketing performers will use data to their advantage.
Laying the groundwork for first-party data success means understanding the variables that shape the journey and the key milestones along the way. And here they all are.