Moving Beyond Loyalty to Customer Advocacy

The average U.S. household participates in nearly 22 loyalty programs every year.  However, that does not mean that householders are, in fact, loyal to these brands.  Repeat purchases rather than just loyalty program sign-ups ought to be the core metric for loyalty.  How many widgets a person buys determines how loyal they are to the widget maker.  But, in our digitally-charged economy, companies should aspire to lead customers beyond loyalty to advocacy.

“They generate word of mouth advertising.  They like your social pages.  They share information on your brand on their own social pages.  They refer other business your way.  And, they generate more revenue…”

Customer Advocates Improve Your Top and Bottom Line

A customer advocate not only makes more purchases but also tells others about their positive experience with your brand.  They generate word of mouth advertising.  They like your social pages.  They share information on your brand on their own social pages.  They refer other business your way.  And, they generate more revenue—from their direct purchases and influenced purchases.  All of this activity reduces your acquisition costs, which improves the bottom line.

There are some categories that lend themselves to higher levels of customer advocacy.  For instance, new car owners are more likely than toothpaste buyers to be passionate about their purchases.  However, when new features are introduced—even in toothpaste, a campaign aimed at increasing customer advocacy can really help a business improve the efficiency of the marketing spend.

Customer Advocacy Should be Nurtured

We have all seen the social posts that say “The first person to tweet ‘#LoveXYZProduct’ gets a $25 gift card.”  These ads are promotions but they do not increase customer advocacy.  They are a temporary, one-time lift in awareness that is not likely to be sustainable.

Advocacy Through Social Media

Customer advocacy in social media should be initiated by the customer BUT making it easy for the customer to share information can increase advocacy efforts.  Include social buttons on your online product pages.  Be sure your social handles are included on product packaging that reaches the customer.  In mobile advertising, use hashtags or shareable links in your creative.  Take advantage of very opportunity to help the customer share your message.

Advocacy Through the Product Experience

Many customer advocates will share their experience in interacting with the product.  Marketers need to contemplate this in the delivery, use and ownership of the product.  To encourage customer advocacy:

  • Seamlessly integrate your product into the customer’s day-to-day
  • Make the product easy to buy and use
  • Deliver unexpected (and infrequent) surprises

Loyal customers generate revenue through their own purchases.  Customer advocates generate revenue through their own purchases and by influencing the purchases of others.  Business leaders would be well-served to identify and nurture customer advocates among their buying population.