How to measure customer loyalty: 7 metrics for a small business

If you don’t measure it, you don’t know whether your loyalty programme works. No complicated spreadsheets needed: seven numbers, checked once a month, are enough.

22 October 2026 Β· 2 min read

1. Customers signed up

How many customers join your programme each week or month. If it’s low, the problem is usually at the counter: it isn’t offered, or signing up is slow. Compare it with the customers you serve: if only 1 or 2 out of 10 sign up, there’s room to improve.

2. Retention rate

Of the customers who came one month, how many came back the next. It’s the king of loyalty metrics.

Retention = returning customers Γ· customers in the previous period Γ— 100
If 200 came in September and 120 came back in October, your retention is 60%.

3. Visit frequency

How many days on average between a customer’s visits. If your programme works, this number goes down: they come back more often. It also tells you when a customer has been away too long.

4. Redemption rate

Of the customers who start the card, how many reach the reward. Very low (under 10 or 15%) usually means the reward is too far away. Very high in a short time may mean you’re too generous. See how many stamps to use.

5. Lost customers

Regulars who have been away much longer than usual. For example, someone who came every week and hasn’t appeared for a month. They’re your best opportunity: a timely message wins many of them back. Ideas in winning back lapsed customers.

6. Average ticket of programme members

Compare what a programme member spends per visit with a non-member. Loyal customers usually spend a bit more; if not, review the reward or add points per euro.

7. Customer value

How much a customer brings you over the time they keep coming. A simple calculation:

Value = average ticket Γ— visits per year Γ— years they keep coming
A cafΓ© customer spending €3 three times a week for two years is worth around €900. That’s why it’s worth giving them a coffee now and then.

How often to review

Once a month is enough. Write down the seven numbers, compare them with last month and change one thing at a time (the reward, the number of stamps, a new message) so you know what worked.

Let the numbers come by themselves

With a paper card you can measure almost nothing. With a digital card, the dashboard gives you new customers, returning customers, redemptions and who has stopped coming each month, no spreadsheets needed. More in customer profiles and statistics.

Frequently asked questions

What is the customer retention rate?

The percentage of customers from one period who come back in the next. If 120 out of 200 return, retention is 60%.

What is a good redemption rate?

It depends on the industry, but if fewer than 10 or 15% of those who start the card reach the reward, bring it closer.

How do I calculate customer value?

Multiply their average ticket by visits per year and by the number of years they usually keep coming.

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