The Benefits of Customer Advocacy for Business Growth: Turning Customers into Brand Ambassadors

In the world of business, building strong relationships with customers is crucial for growth and success. One of the most effective ways to achieve this is through customer advocacy programs that turn customers into brand ambassadors. In this article, we will explore the benefits of customer advocacy and offer tips for creating a successful program.

What is customer advocacy and brand ambassadorship?

Customer advocacy is the process of developing loyal customers who are willing to share their positive experiences with others. Brand ambassadors are customers who go a step further by actively promoting and endorsing a brand to their peers.

Why is customer advocacy important for business growth?

Studies have shown that customer advocacy is a powerful driver of business growth. According to a report by Salesforce, 72% of customers who are advocates of a brand are likely to recommend it to others. This word-of-mouth marketing is more effective than traditional advertising because it is based on the trust and credibility of personal recommendations.

Creating a customer advocacy program

A customer advocacy program is a structured approach to building relationships with customers and turning them into brand ambassadors. Here are the steps to create a successful program:

1. Identifying potential advocates

Start by identifying customers who are most likely to become advocates. These could be customers who have made repeat purchases, left positive reviews, or referred others to your business.

2. Providing an exceptional customer experience

The foundation of any customer advocacy program is providing an exceptional customer experience. This means going above and beyond to meet and exceed customer expectations at every touchpoint.

3. Engaging customers and building relationships

Engage with your customers on a regular basis and build a relationship with them. This could be through personalized email campaigns, social media interactions, or even events and meetups.

4. Offering incentives and rewards

Offer incentives and rewards to customers who become brand ambassadors. This could be in the form of discounts, exclusive content, or even cash rewards.

5. Measuring success

Track and measure the success of your customer advocacy program. This could be through metrics such as referral rates, customer retention, or social media engagement.

The benefits of customer advocacy for business growth

Now that we've covered the steps to create a customer advocacy program, let's explore the benefits of customer advocacy for business growth:

1. Increased brand awareness and visibility

When customers become brand ambassadors, they help to spread the word about your business to a wider audience. This increases brand awareness and visibility, which can lead to new customers and increased revenue.

2. Improved brand reputation and credibility

Positive word-of-mouth marketing from brand ambassadors can improve your brand's reputation and credibility. This is because recommendations from trusted sources are more persuasive than advertising or marketing messages.

3. Increased customer loyalty and retention

Customers who are advocates of a brand are more likely to remain loyal and continue making purchases. This is because they have a deeper connection and emotional attachment to the brand.

4. Higher customer lifetime value

Customer lifetime value is the amount of revenue a customer generates over their lifetime of doing business with your company. Advocates have a higher lifetime value because they make repeat purchases and refer others to your business.

5. Cost savings on marketing and advertising

Word-of-mouth marketing is essentially free advertising. By turning customers into brand ambassadors, you can reduce your marketing and advertising costs while still achieving growth and success.

6. Competitive advantage

A strong customer advocacy program can give your business a competitive advantage. By building strong relationships with customers and turning them into brand ambassadors, you can differentiate your business from competitors and stand out in the marketplace.

Real-world examples of successful customer advocacy programs

Here are a few real-world examples of successful customer advocacy programs:

1. Airbnb

Airbnb has a robust customer advocacy program that rewards customers for referring new hosts and guests. In addition to cash rewards, the program offers exclusive perks such as free stays and VIP experiences. As a result, Airbnb has built a loyal community of brand ambassadors who actively promote the platform to their friends and family.

2. Dropbox

Dropbox is another company that has leveraged customer advocacy to drive growth. Its referral program offers both the referrer and the new user additional storage space for free. This has resulted in millions of new sign-ups and significant revenue growth.

3. Glossier

Glossier, a beauty and skincare brand, has built a strong community of brand ambassadors through its Instagram presence. The company actively engages with customers through comments, direct messages, and user-generated content. This has led to a loyal following of advocates who promote the brand on social media.

4. HubSpot

HubSpot, a marketing software company, has a customer advocacy program that rewards advocates with free access to premium features and exclusive events. This has led to a strong community of advocates who actively promote the brand to their peers.

5. Nike

Nike's customer advocacy program is centered around its NikePlus app, which offers personalized workout plans, exclusive content, and early access to product releases. This has led to a loyal community of brand ambassadors who are passionate about fitness and the Nike brand.

Conclusion

In conclusion, customer advocacy is a powerful driver of business growth. By turning customers into brand ambassadors, businesses can benefit from increased brand awareness, improved reputation and credibility, higher customer lifetime value, cost savings on marketing and advertising, and a competitive advantage. To create a successful customer advocacy program, businesses should focus on providing an exceptional customer experience, engaging with customers on a regular basis, offering incentives and rewards, and measuring success. With a strong customer advocacy program, businesses can build a loyal community of advocates who will help to drive growth and success for years to come.

This article was brought to you by: Jason Miller, AKA: Jason “The Bull” Miller, Founder/CEO and Senior Global Managing Partner of the Strategic Advisor Board - What has your business done for YOU today?

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