The Importance of Loyalty in Marketing Metrics

Bendle (et al. 2016) looks at loyalty as being more of a broad concept then a specific metric marketers seek to measure.

There are some key metrics that must be considered when attempting to measure loyalty. These include share of requirements, willingness to pay a premium, willingness to search, repurchases and purchase frequency (Bendle et al. 2016.

Loyalty is important as an indicator for future business and the higher the level of loyalty is a reflection that the company will be likely to receive future revenue from this customer. Bendle (et al. 2016) raises the dynamic nature of loyalty and given the highly competitive nature of most markets now, if a company fails to meet the changing needs of their customers, the new entrants are constantly evolving to threaten customer loyalty.

Willingness to search is considered the ‘acid test’ for loyalty but to accurately collect the data to build this metric can be difficult. It is defined as the percentage of customers who would wait to buy a brand that is (temporarily) unavailable rather than buy an alternative brand. This could involve the customer going through a different medium to purchase their preferred brand or purchasing the minimum amount of their lesser preferred brand until they can again access their preference.

Loyalty is a key aspect for marketers to consider when measuring the success of their brand, a high level of loyalty in customers can be a great indicator for a sustained competitive advantage and future success. Marketers must always ensure they are meeting their customer’s needs as the threat of a substitute or new entrant are constantly evolving in the competitive environment that exists in most markets today.


Bendle, NT, PW Farris, PE Pfeifer & DJ Reibstein (2016) Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, 3rd edition. Pearson: New Jersey


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