When analyzing customer loyalty, which two measures must a business analyst track to meet the application requirements?

The selection of "Number of Purchases and Purchase Amount" as the correct answer is well-founded when analyzing customer loyalty. By tracking the number of purchases, a business analyst can determine how often customers are returning to make purchases, which is a critical metric for assessing loyalty. Frequent purchases generally indicate a strong relationship between the customer and the business.

Additionally, monitoring the purchase amount provides insights into the financial contribution of loyal customers. High purchase amounts can suggest that loyal customers are not only returning but are also willing to spend more, which can be a key indicator of loyalty. Together, these two measures create a comprehensive view of customer engagement and loyalty by showing both the frequency of transactions and the total impact of those transactions on revenue.

Other options may focus on related metrics, but they do not capture both the engagement (through the number of purchases) and the value (through the purchase amount) necessary for a robust understanding of customer loyalty. For instance, tracking customer feedback might offer insights into satisfaction but does not quantitatively reflect purchasing behavior. Likewise, total customers and purchase frequency or sales volume and customer retention rate may miss the monetary aspect that is crucial for analyzing loyalty in a competitive market.