TLR: Temkin Loyalty Rating (Customer Loyalty Index)

TLR (Temkin Loyalty Rating) is a survey-based index designed to measure customer loyalty through a multi-question framework rather than a single-item score. It evaluates loyalty using three complementary dimensions:

• Likelihood to repurchase (repeat purchase intent)
• Likelihood to recommend (advocacy intent)
• Willingness to forgive (tolerance for occasional mistakes)

The idea behind TLR is practical: loyalty isn't one thing. Some customers keep buying but never recommend; others recommend but switch easily; some tolerate mistakes because overall value is high. By capturing these components, TLR creates a more nuanced loyalty picture than a single question alone.

TLR is especially useful as part of a broader customer loyalty measurement system, where teams need a stable, repeatable indicator for dashboards, benchmarking and trend monitoring.

Why TLR Is Used

TLR is used when organizations want to measure loyalty as a relationship outcome - not just momentary satisfaction.

1) Strengthening customer retention strategy

Repeat purchase intent is closely tied to whether customers stay over time. TLR supports retention programs by highlighting where loyalty is weak and which dimensions need improvement.

2) CX and service improvement prioritization

Low forgiveness often signals that customers don't feel protected or valued after failures. That usually points to service recovery issues rather than product features. Linking loyalty findings to service operations helps teams focus on the right fixes.

3) Benchmarking and competitive comparison

Because TLR is structured, companies can compare results across competitors, regions, or product lines.

4) Reputation and advocacy management

Recommendation intent connects TLR to word-of-mouth growth and brand perception. TLR is often interpreted alongside standardized advocacy metrics like NPS when teams want multiple loyalty signals.

5) Data-driven decision-making

TLR makes loyalty measurable and trackable. It becomes a usable operational metric only when survey methodology is consistent and measurement quality via KPI is controlled.

6) Trend monitoring

Tracking changes in TLR across quarters helps teams detect early loyalty erosion even before churn spikes. Trend interpretation becomes stronger when teams use time-based tracking discipline.

How TLR Is Calculated

There is no single universal formula published as an industry standard, but many implementations follow a straightforward approach: compute average scores for each of the three components and combine them into an overall index.

A simplified version:

TLR = (P + R + F) / 3

Where:

• P = average repeat purchase likelihood
• R = average recommendation likelihood
• F = average forgiveness likelihood

Example

If a survey produces:

• P = 8.2
• R = 7.5
• F = 6.8

TLR = (8.2 + 7.5 + 6.8) / 3 = 7.5

Some organizations use weighted scoring (for example, weighting repeat purchase higher for subscription businesses). The key is consistency over time.

Because TLR relies on survey responses, sample planning matters. A loyalty score derived from a small, biased probability sample can be stable-looking but misleading.

General Methodology for TLR Surveys

A reliable TLR program follows a disciplined survey workflow.

1) Define the audience and context

Decide who you measure:

• active customers
• recent purchasers
• long-term users
• specific segments (enterprise vs SMB)

If you mix audiences, trends become harder to interpret.

2) Design clear questions for all three components

TLR requires clear, consistent wording. Most implementations use 0–10 scales. To reduce interpretation variance, keep anchors stable across waves.

If you want a standardized attitude scale format, you can also adapt wording to structured scale design patterns like a Likert-style agreement format-particularly for forgiveness items.

3) Add a short diagnostic follow-up

TLR tells you "what level," but not "why." A short open-ended prompt ("What is the main reason for your rating?") adds explanatory depth. Those responses can be grouped systematically due to thematic analysis.

4) Pilot before broad rollout

Piloting helps detect ambiguity and scale confusion, especially in the forgiveness question where interpretation varies by culture and industry.

5) Collect and analyze consistently

Track overall TLR and component scores separately. Often, the component breakdown is more actionable than the total.

What Is a "Normal" TLR Score?

There is no universal "normal" TLR because loyalty expectations differ by:

• industry and switching costs
• product category and purchase frequency
• pricing and customer maturity
• brand positioning

Instead of relying on a global benchmark, mature teams use three reference frames:

• Historical baseline: your own trend over time
• Internal comparison: segments, regions, product lines
• Competitive benchmarking: peer positioning

Even small improvements can matter, because loyalty impacts repeat business, referrals and long-term value.

TLR vs Related Metrics

TLR overlaps with other loyalty frameworks, but the distinctions are useful.

TLR vs NPS

NPS focuses on recommendation intent only. TLR adds repeat purchase and forgiveness, giving a broader loyalty construct.

TLR vs CSAT

CSAT measures satisfaction with a product or interaction. Loyalty is a longer-term relationship outcome. A customer can be satisfied but not loyal, or loyal despite occasional dissatisfaction.

TLR vs VOC

VOC is not a metric but a feedback system that helps explain what drives loyalty and dissatisfaction. TLR can be one output inside a VOC program, where themes are tracked and improvements are validated.

How to Improve TLR

Improving TLR means improving its three components-purchase intent, recommendation and forgiveness-through real experience improvements.

Increase repeat purchase likelihood

Improve product reliability, value clarity, and lifecycle communication. Make it easy to return and buy again.

Increase recommendation intent

Recommendation increases when customers feel proud and confident sharing the brand. Strong onboarding, consistent outcomes, and clear positioning all help.

Increase forgiveness

Forgiveness is often the hardest component. It improves when customers believe the company:

• resolves issues quickly
• communicates transparently
• makes recovery easy and fair

Operationally, forgiveness is strongly influenced by how support handles problems end-to-end. Faster and clearer resolution improves trust and reduces resentment after mistakes.

Final Thoughts

TLR (Temkin Loyalty Rating) is a practical way to measure loyalty as a multi-dimensional outcome-capturing not just advocacy, but repeat intent and tolerance for imperfections. That makes it especially useful for companies that want a loyalty metric more diagnostic than a single question.

The most valuable way to use TLR is:

• track components, not only the total
• measure consistently over time
• link findings to operational improvements
• use qualitative feedback to explain drivers

When used as part of a broader loyalty and CX system, TLR becomes a reliable signal of relationship strength-and a clear guide for where experience improvements will matter most.