Speaking of NPS (Net Promoter Score, Net Promoter Score), everyone must be familiar with it, it is known as the best indicator in the field of customer experience management (CEM), and is recognized and sought after by everyone for "measuring customer loyalty".
However, with the passage of time and the rapid development of various industries, some critics have begun to argue that NPS as a single measure of customer loyalty is far from enough.
Perhaps in response to this skepticism, NPS embarked on the road of advancement, from the previously introducednps 3.0, to this daycli。It has to be said that customer experience measurement is becoming more comprehensive and objective:
CLI is the abbreviation of Customer Loyalty Index, which is translated into Chinese"Customer Loyalty Index".
As an advanced version of NPS,The CLI encompasses both NPS and goes beyond it. Why?Because it not only measures the Net Promoter Score, but also tracks the customer's repurchase and cross-purchase intentions:
*From the Internet.
how likely are you to recommend us to family or friends？
How likely are you to recommend us to your family or colleagues?
how likely are you to buy from us again？
How likely are you to buy from us again?
how likely are you to try our other products？
How likely are you to try our other products.
As shown in the figure, to calculate the CLI, we need the above three questions, using a 6-point scale, including six options from "1" to "6". "1" stands for very probable, with a score of 100;"6" means very unlikely, with a score of 0.
The average score of the above three questions is equal to the CLI indicator score. For example, if you have three questions scored in points, your CLI score will be 60.
Optimal HR, a large human resources services agency, points out that CLI is a composite metric that combines several variables in a standardized wayQuantitatively portrays the "emotional" relationship between the customer and the brandIt provides strong data support for tracking customer changes and formulating growth strategies.
to Optimal HR
Capillary Tech, a leading CRM company in Asia, also said that CLI will help us measure customer loyalty more comprehensively and more effectively** customer retention in the future. Therefore, they suggest that companies should measure the CLI at an appropriate frequency and on a regular basis.
In addition to NPS and CLI, there are also many indicators such as customer lifetime value (CLV), recurring revenue (MRR), customer churn, customer retention rate (customer retention), etc., which are constantly grouped into the category of "measuring customer loyalty".
This reflects the importance that companies place on customer loyalty and want to find a way to measure it that is both effective and accurate. It is understood that some organizations will regularly launch "regional" or "industry-specific" customer loyalty research reports. For example, SAP Emarsys, SAP's enterprise marketing platform, has published a report called "Customer Loyalty Index" (translated into Chinese as "Customer Loyalty Index") every year for the past three years.
In its latest report, Emarsys noted a significant decline in consumer loyalty around the world, which is a wake-up call for many businesses.
*From the Customer Loyalty Index 2023
For example, the brand rating agency Chnbrand publishes an annual China Customer Satisfaction Index (C-CSI) brand ranking and analysis report. Compared to Emarsys, this is a customer loyalty report that is "more suitable for the physique of Chinese babies". It will conduct research and analysis according to the industry segments of the Chinese market, and the granularity is also more fine.
Screenshot from chnbrand official website.
However, the report can only provide informational value. Enterprises also need to pay attention to their customer loyalty at all times, and formulate more suitable plans and strategies based on their own goals and actual conditions, so as to achieve the dual improvement of customer loyalty and turnover.
Experience Home helps you easily grasp customer loyalty anytime, anywhere, through coverageThe whole process of customer journey and customer portrait, multi-metric (support NPS, NPS 3.)0, CLI, customer satisfaction, customer effort, etc.), clear and detailed BI Kanban, as well as timely and accurate early warning function,Help enterprises manage and enhance customer loyalty more stable, more comprehensive, and more professional, implement high-quality products and services, promote enterprises to reduce costs and increase efficiency, and achieve sustainable growth driven by experience.
References: 1 how to measure customer loyalty in saas: 10 important metrics to track and improve
2. how to inspire, measure, and improve customer loyalty
3. customer success glossary
4. measuring customer loyalty: 5 ways to track it
5. customer loyalty index 2023
6.chnbrand official website.
Author: Fan Jiaying.