How can you use customer advocacy to retain customers?

1 What is customer advocacy?

Customer advocacy is the act of encouraging your customers to share their positive experiences and opinions about your product or service with others. It can take many forms, such as testimonials, reviews, ratings, referrals, social media posts, case studies, or word-of-mouth recommendations. Customer advocacy can help you build trust, credibility, and awareness for your brand, as well as increase customer loyalty and retention.

2 Why is customer advocacy important for retention?

Customer advocacy is important for retention because it creates a strong emotional bond between your customers and your brand. When your customers advocate for you, they feel more invested in your success, more satisfied with your value proposition, and more connected to your community. They also receive social validation and recognition from their peers, which boosts their self-esteem and confidence. As a result, they are less likely to switch to a competitor, more likely to buy from you again, and more likely to refer new customers to you.

3 How to measure customer advocacy?

Measuring customer advocacy is essential for understanding your goals and objectives. Common ways to do this include the Net Promoter Score (NPS) which asks customers how likely they are to recommend your product or service on a scale of 0 to 10. Additionally, the Customer Satisfaction Score (CSAT) is a survey that measures customer satisfaction on a scale of 1 to 5. Additionally, Customer Lifetime Value (CLV) estimates how much revenue a customer will generate for your business over their entire relationship with you. Lastly, Customer Advocacy Platform (CAP) is software that helps manage and reward customer advocates, track their activities and referrals, and measure their impact on your business.

4 How to identify your customer advocates?

Customer advocates are not necessarily your biggest or most frequent buyers; they are those who have a genuine passion and enthusiasm for your product or service, trust and respect your brand, and are willing and able to spread the word about you. To identify them, you can ask customers if they would like to join your advocacy program or if they have already referred someone to you. Surveys, feedback forms, and social media polls can also be used to gauge their interest and satisfaction. You can use data and analytics to segment customers based on their behavior, engagement, and loyalty. Indicators such as NPS, CSAT, CLV, repeat purchases, retention rate, churn rate, referral rate, social media mentions, reviews, ratings, testimonials or case studies can also be used. Offering rewards such as discounts, freebies, upgrades, access, recognition or exclusivity can incentivize customers to become advocates. Gamifying your customer advocacy program with points, badges, levels or leaderboards may also help.

5 How to leverage your customer advocates?

Customer advocates are your best assets for growth and retention, so you should leverage them by empowering, engaging, and enabling them. Give your customer advocates the tools, resources, and information they need to share their stories and create content. Create a sense of community by communicating regularly and celebrating their achievements. Make it easy and fun for them to refer new customers to you by providing referral links, codes, or coupons. Customer advocacy is a win-win situation for both your startup and your customers; it increases your retention rate, reduces your churn rate, lowers your acquisition cost, and improves revenue and profitability. You can also create a loyal fan base that will support you and help you grow your business.