Selling and Customer Experience


Customer Loyalty Strategy and Metric

Task 2

Customer Loyalty Strategy and Metric

Loyal customers spend money on your business repetitively, giving the firm a consistent flow of revenue which is essential for the success of every profit-oriented organization. Statistics show that bringing a new customer to the business to the loyal level of buying is about 16 times the revenue of the first purchase (Karr, 2013). The Probability of making a sale to a loyal customer is above 60%, while selling to an entirely new customer has a likelihood of about 5% to 20% (Saleh). Further, an increase of 5% in customer retention can increase a business’s profits by 25% to about 90%, depending on the business (Fergison, 2017).  For a business to accurately track its progress in customer retention, it is important to keep track of the customer loyalty index periodically. This is arrived at by employing a customer loyalty metric.

Fresh Brew will use the Net Promoter Score to measure customer loyalty. This is because the metric will help get a clear picture of the customer base we can create through referrals (Burnett, 2019). The Net Promoter Score is the best because it gives the business confidence on the promoters and draws lessons for improvement from the passives and the detractors (SKAČKAUSKIENĖ, VILKAITĖ-VAITONĖ, & VOJTOVIC, 2015). It measures the likelihood of a customer repeatedly doing business with you. This metric will be necessary for Fresh Brew in forecasting the growth of the business and cash flow. It will also assess the brand Fresh Brew’s health and the customers’ overall satisfaction levels. The net promoter score is also the best for measuring customer loyalty at Fresh Brew because it reveals customer sentiments about the business, the quality of service they get, the social presence, the service crew, and technically everything necessary regarding client experience. Net promoter score is a relevant and useful key performance indicator. It is straightforward to understand as it is based on a linear scale. Therefore, it will give the Fresh Brew executives and the team an easy digest of information and allow them to make an informed decision quickly. For the customers, the net promoter score is quick and simple as it includes very few questions. The simplicity and less time consumed make if inexpensive so that the business can get a higher response rate than other metrics. Lastly, this metric is important in tracking business progress over time and can be used to benchmark against competitors.

 In getting the net promoter score, we will ask the customers about their likelihood of referring their friends to Fresh Brew. The customers will be asked to rate their answers on a scale of 0-10. We will divide this scale into three main categories, namely, the detractors (0-6), the passives (7-8), and the promoters (9-10). The insight we will get from this survey is the customers’ loyalty because loyal customers are most likely to refer friends to try a brand’s products. It will also inform on the satisfaction level the customers have as a satisfied customer is likely to be loyal to the brand.

Fresh Brew will send each customer a short survey on their mobile phones after purchasing through short messaging. This method is relatively affordable to the business and requires a little of the customers’ time to respond (IV, Beck, Henderson, & Palmatier, 2015). Online surveys will also be utilized for customers who purchase online for deliveries.

We will start loyalty rewards in the form of discounts for customers who refer a new customer to Fresh Brew (IŠORAITĖ, 2016). This promotion program will increase our sales, awareness, and customer base (Abu-Alhaija, Yusof, Hashim, & Jaharuddin, 2018).


Abu-Alhaija, A. S., Yusof, R. N., Hashim, H., & Jaharuddin, N. S. (2018). Determinants of Customer Loyalty: A Review and Future Directions. Australian Journal of Basic and Applied Sciences 2018 July; 12(7): 106-111.

Burnett, S. (2019, October 28). Metrics for Measuring Customer Loyalty. Retrieved June 23, 2020, from Forbes:

Fergison, L. (2017). Measuring customer loyalty: Why and How. Retrieved June 26, 2020, from Fivestars Loyalty, INC: https:/

IŠORAITĖ, M. (2016). CUSTOMER LOYALTY THEORETICAL ASPECTS. ECOFORUM Volume 5, Issue 2 (9), 2016, 292-299.

IV, G. F., Beck, J. T., Henderson, C. M., & Palmatier, R. W. (2015). Building, measuring, and profiting from customer loyalty. J. of the Acad. Mark. Sci. DOI 10.1007/s11747-015-0439-4, 1-36.

Karr, D. (2013, August 29). Customer Retention by the Numbers. Retrieved June 26, 2020, from DK New Media:

Saleh, K. (n.d.). Customer Aquisition Vs. Retention Costs-Statistics and Trends. Retrieved June 26, 2020, from Invesp: https:/

SKAČKAUSKIENĖ, I., VILKAITĖ-VAITONĖ, N., & VOJTOVIC, S. (2015). Model for measuring customer loyalty towards a service provider. Journal of Business Economics and Management 2015 Volume 16(6), 1185–1200.