How to Measure Brand Loyalty

Brand loyalty is crucial to your success. It means more than just having repeat customers; it means your audience views you in a positive light, and will even defend you from negative comments.

Without brand loyalty, you’ll be fighting every step of the way to remain successful. You’ll need to compete by having flash sales, target popular gimmicks, and run expensive marketing campaigns to gain new customers.

Remember, if your customers are just one-time wonders, you must continuously find fresh ones.

Through your branding efforts, you’ll try to get your customers to choose your brand over everyone else, even when they have the opportunity to go elsewhere—and that’s brand loyalty.

Why Brand Loyalty is so Important

Companies who have insanely high customer loyalty can enjoy many benefits. Just look at Apple, a brand with fiercely loyal customers. Whenever they release a new iPhone, you’ll see fans camping in front of Apple stores to be the first to get their hands on shiny new devices.

Apple can also put a premium price on their products because they know people will buy them. And it doesn’t matter if Samsung releases a cheaper, better phone than Apple; thanks to brand loyalty, those same consumers will still buy from Apple.

And, remember, it’s cheaper to retain customers than get new ones.

On that note, let’s take a look at how to measure brand loyalty to see if your branding efforts are actually working!

How to Measure Brand Loyalty: 5 Key Metrics

The most important step in your brand loyalty journey is knowing how to measure it. This way, you can gather essential data, learn from it, and improve your branding. Here are some different ways to assess your customers’ loyalty to you—starting right now.

The Bread and Butter of Brand Loyalty: Surveys

Surveys are a simple yet powerful tool you can use to measure brand loyalty on a number of levels. You can use these to identify both your strong and weak areas, and then improve them. The 5 crucial metrics you want to measure are:

1. Customer satisfaction

2. Brand trust

3. Brand Awareness

4. Brand quality

5. Brand value

Let’s drill down into each of these criteria.

How to ask about and measure your customers’ satisfaction

By asking and measuring your customers’ satisfaction, you’ll better understand if your brand, products, and services are meeting their expectations.

You can ask questions like the below, but feel free to tweak them to your liking:

– Are you happy with your overall experience with us?

– Would you recommend us to your friends or family?

– Would you rate us higher than other similar companies?

– How does our product quality compare to competitors? (Better, worse, the same?)

When customers repeatedly purchase from your brand, that’s a sign of loyalty. Your job is to understand what is motivating these repeat purchases (and if not, why not).

How to ask about and measure your brand's trustworthiness

Trust is a powerful commodity. It means customers have faith in you, in your brand, your service, and products. It’s especially important if you handle any critical or sensitive information such as payment and contact details.

Here are some questions you can ask to assess the level of trust customers have for your brand:

– How much do you trust our brand on a scale of 1-5? (5 being the highest level of trust)

– Do you trust our company over similar brands?

– How were we able to earn your trust?

– What can we do to increase your confidence in us?

With these questions, you’ll be able to identify what is working or not working about your brand messaging, and you can create a list of actionable items you can use to increase your trust further.

How to ask about and measure your brand awareness

Brand awareness is a way for you to measure how much reach or familiarity your brand has. If your brand isn’t recognizable, you can take steps such as redesigning your logo to be more impactful and memorable. Other actions can include increasing your marketing campaigns or changing your website copy.

Use this series of questions to measure your brand awareness:

– Have you ever heard of us before?

– How familiar are you with our brand? (On a scale of very familiar to not familiar)

– Would you recognize our brand by our logo?

How to ask about and measure your brand's perceived quality

You must gauge how your customers perceive the quality of your brand, i.e. their belief about the extent to which your brand fulfills its expectations. You can have great metrics for everything else, but if you’re known as a low-quality brand, you’ll find it hard to break that perception.

Here are some brand perception survey questions you can use to measure perceived quality:

– Do you consider our brand to be high or low quality?

– Would you rate the quality of our brand higher or lower compared to similar brands?

– How likely would you be to switch brands if an alternative brand sold what we sold for cheaper?

– How likely would you be to switch brands if an alternative brand had a physical store that was closer to you?

How to ask about and measure your brand's value

Measuring your brand’s value works well when compared to your brand’s quality. If your brand is perceived as low-quality, but your prices are high, you may be losing business—which is something you can remedy.

To gather enough data to measure how customers perceive your brand’s value, use questions like:

– On a scale of 1-5, how would you rate our brand/product?

– Compared to a similar brand, do you find our brand/product has more, less, or equal value?

Discovering why your customers feel loyal to you is just as crucial as finding out why they’re not loyal. Using surveys, you can uncover critical insights on how to improve your overall brand loyalty and help retain customers so you and your business can grow as much as possible.

Before running off to hand out your own surveys, there’s one more way to measure brand loyalty at your disposal:

Calculate your repurchase ratio

This is an excellent ratio that measures the number of repeat customers over your one-time customers. Why is this so important? A low ratio means the majority of your customers are not loyal!

It’s super important to take into account your industry, however. If it’s hard for customers to switch to a different brand, it may distort the ratio, so take that into consideration.

If you use a subscription model, you can calculate your repurchase ratio by dividing the number of customers who extend their subscription after the first period by the number of customers who canceled.

For regular transactions, this is easier to do. Just calculate the difference between customers who made at least one more transaction after their initial purchase.


Over to You

Bottom line: It’s hard to be successful without loyal customers.

The loyalty of your customers is crucial if you want to succeed as a business, but you can only improve by first measuring it. Otherwise, you’re just shooting in the dark, hoping to hit something.

By starting with a survey, you’ll help to bridge the gap between you and your customers and open up a fresh way to communicate with them.

Let them know why you’re asking them to complete the survey and offer something in return, such as a coupon, free delivery, or free trial for your other services.

Become an awesome brand that not only gets customers to keep coming back to you, but inspires them to bring their friends!