Thursday, December 15, 2011

Are there algorthims (simple) to get a measure of loyalty for a service?

I want to be able to analyse service data (customer, date, size) for each transaction and to get a single measurement to see how loyal our customers are. Customers are grouped into units (departments).|||Because you said "simple":


You may want to create some ratio,


for example, "loyalty per customer",


where you:


(1) put into numerator all values with


positive impact


(2) put into denominator all values


with negative impact


(3) define co-efficients of


IMPORTANCE (i.e. weight) per


each value, and multiply each


value by its respective


co-efficient





Examples of (1):


* how often each customer visited your


site


* how often each customer really bought


something


* how much each customer bought each


time


* how much each customer bought


during some period of time (year,


month)


* ...





Example of (2)


* overdrafts, returns, etc


* ...





Some guys can provide you different pseudo-scientific "the one fits all" solution formulae, but, personally, I would prefer my CUSTOM solution, which I can adjust and re-consider with time, experience and impact on my financial results, in dynamics and total flexibility.


But it does not hurt to check the best practise in your particular type of industry, I just recommend to create your own formula in the way suggest in the beginning, just to not stop your creativity. In real life, sometimes you many times could come up with something better than ready-made solution from even authorized source.





You got an idea.|||This answer is just to bring the question to a vote. Please vote for the above answer.

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