Consumers show their loyalty in two ways: by referring a product or brand to others, and by buying more from a brand.

But most companies don’t measure whether their customers provide referrals and to what extent their customers buy more, and others use metrics that fall short.

Banks and credit unions should adopt a new measure of customer loyalty, and the Referral Performance Score–the percentage of customers who refer an institution multiplied by the percentage of customers who grow their relationship–provides a superior way to track, measure, and understand just that.

Based on a Q2 2013 Aite Group survey of 1,242 US consumers, this report by senior analyst Ron Shevlin updates Aite Group’s first report on the metric, looks at how the industry’s Referral Performance Score changed between 2012 and 2013, and provides advice on how FIs can use the metric to better measure their customer relationship management efforts.

This 24-page Impact Note contains 15 figures and three tables. Clients of Aite Group’s Retail Banking service can download the report by clicking on the icon to the right.