We’ve spoken about customer loyalty for international education. We’ve mentioned how important it is to stay on top of your game when it comes to these two aspects of your company, and with good reason. An increase of 5% in customer retention results in about a 25% increase in profits. Not only do customers who have an emotional connection with a brand have a higher lifetime value, but they are more likely to recommend it to friends and family. Let’s see how you can quantify loyalty and use it to add growth:

Customer Retention Rate

This is the process of turning buyers into repeat customers. When looking to grow your business you must not just focus on getting new clients but also satisfying  the ones you already have. This formula is important to confirm whether you are retaining your customers and if not, maybe it's time to look into the why? You can calculate this by:

Total Customers at the End of Period LESS New Customers DIVIDED BY Customers at Start of Period MULTIPLY BY 100.

Net Promoter and Customer Satisfaction Score

These are simple and quick one question surveys with questions such as ‘On a scale of 1 to 10 How likely are you to recommend our services?’ When analyzing the results keep these brackets in mind: 0-6 are those unhappy customers who may share their negative feelings (Detractors), 7-8 are those customers that are indifferent to your brand, while 9-10 are those enthusiastic customers that are highly likely to promote your services (Promoters). 

To calculate your Net Promoter Score:

Number of Promoters LESS Number of Detractors MULTIPLY BY 100.

To calculate your Customer Satisfaction Score

Number of Positive Responses DIVIDED BY Total Responses MULTIPLY BY 100.

Repeat Purchase Rate

This calculation allows you to measure actual customer behavior and discover the amount of customers that carry out multiple purchases with you. In the case of a School, customers who have booked more than one course over a period of time. You can calculate this by:

Repeat Customers DIVIDED BY Number of Total Customers MULTIPLY BY 100

Listening and Observing

Even though this does not really quantify your customer loyalty it is a very essential part of the process. Nowadays most of your customers are on social media, and these platforms are a great resource for information. Listening and asking questions can give a great boost to your customer loyalty program as it not only allows you to reach out and get their ideas, but it also gives you insight on what services are best for them.

Customer Loyalty is a great asset to any company, this week we have discussed all the ways you can quantify your loyal customer data.Stay tuned as next week as we explore more how these formulas help in adding growth to your business.