Customer Loyalty Index to Evaluate Intensity and Signal of Change Based on Purchasing History

Abstract

Conventionally, we need to have an additional investigation to measure customer loyalty. The purpose of this study is to develop indices to evaluate customer loyalty using only the purchase history related to services. These indices quantitatively evaluate the intensity of loyalty and the signal of change by using the data of customer visit and staff nomination. We analyzed customer loyalty of a hair salon chain by using these indices, and evaluated the tendencies of customer loyalty within customers, staffs, and salons.