Unlocking the power of customer advocacy for consistent growth

This blog will cover a topic that has shaped brands and driven growth for centuries: advocacy.

In its most traditional form, advocacy is simply word of mouth.

But in today's complex marketplace, there is so much more that it can offer a brand-especially when it's tracked, measured, and delivered effectively.

Here's what we'll cover

Why advocacy matters: Sara's story

Let's start with a personal story about Sara, who's made a lasting impression beyond that of "just" customer.

Sara is a consultant who uses software to manage her business finances.

She recently shared she had introduced Sage to three of her peers.

They have all since become loyal customers.

What's remarkable is that, according to traditional metrics in the wider world, Sara would be considered an "average value" customer.

But her impact goes far beyond that single label.

Sara's enthusiastic recommendations have driven value that could be missed if you only look at her transactional worth.

Sara represents a much larger pool of customers who consistently create value by advocating for brands, but her story is not unique to Sage.

In each of your markets, you have customers like Sara, individuals whose influence extends beyond their immediate purchase.

By recognizing and nurturing these advocates, brands can unlock a network of loyal supporters who amplify the brand message in ways that traditional marketing can't.

Advocacy is about giving the "Saras" of the world the spotlight they deserve, and by doing so, discovering immense value.

The true value of advocacy: Beyond dollars

When customers advocate for a brand, they offer something beyond monetary value.

Their support becomes priceless.

In marketing, the focus can often be on customer lifetime value (LTV), growth, reach, and brand reputation-all of which advocacy can significantly enhance.

Advocacy drives organic reach, builds credibility, and, most importantly, it cultivates a sense of community and trust around the brand.

Let's explore these benefits in more detail:

1. Retention and Lifetime Value (LTV)

Advocacy strengthens customer retention by creating environments where customers engage with each other.

When customers feel valued, they're more likely to stay loyal, leading to increased LTV.

2. Growth and new customer acquisition

Advocacy doesn't only drive retention; it fuels growth.

Advocates like Sara help new customers make informed buying decisions.

Through reference calls, reviews, case studies, and word of mouth, advocates provide the social proof that new customers need to choose your brand.

3. Extended reach

Advocates extend a brand's reach by sharing their experiences within their networks, often before you even realize a prospect is interested.

This organic word-of-mouth marketing is invaluable and has been a key growth driver for centuries.

The impact of advocates

Let's take a deeper look into the impact of advocates.

According to Forrester, 84% of decision-makers consider customer references critical when making buying decisions.

Additionally, 60% of sales pipelines are lost to "no decision" because prospects are uncertain about the product's value, and 64% of buyers struggle to differentiate between brands.

This is where advocates like Sara become invaluable, helping your brand stand out by communicating the unique value it offers.

Every day in the life of an advocate like Sara, she's meeting clients, attending networking events, sharing advice, and building relationships.

Even if your product is just a small part of her day-to-day, it's embedded in her routine and in the broader context of her life.

Advocates like Sara operate as brand ambassadors, expanding your reach to potential prospects and contributing to your market presence even when you're not there.

When Sara shares her experiences with someone, she is adding to a set of intangible yet impactful metrics.

While these metrics may be harder to quantify, they're happening in real time, influencing your brand's reputation and reach.

Advocacy brings together the big picture of customer loyalty, trust, and social proof-factors that are harder to measure but have a profound impact on long-term success.

Understanding and engaging your advocates

So, who are these advocates, and how can brands connect with them?

To begin, it's essential to remember that advocates are individuals, not merely personas.

While the creation of personas helps to identify common themes, true advocates are unique people with diverse stories, backgrounds, and motivations.

To build a relationship with them, brands must recognize these individual characteristics and engage them on their terms.

Using Sara as an example, here's what you know about her:

• She's a business consultant for startup CEOs.
• She mentors students at a business school.
• She's published articles on "Mindset Frameworks."
• She enjoys hiking and the outdoors.

These traits give us valuable insights.

Sara is a thought leader in the startup space, cares deeply about community, and has a sense of responsibility toward the next generation of business leaders.

When you know what interests her, who she trusts, and what she's comfortable with, you can engage with her in ways that align with her values and passions.

The dimensions of value: Economic, symbolic, functional, and experiential

To build effective advocacy, use the four core dimensions of value, as identified by Forrester. Here's how these values apply to interactions with advocates:

1. Economic value

This might include a competitive pricing proposition or productivity features that save time.

These offerings can serve as a foundation for advocacy.

2. Symbolic value

This builds loyalty by fostering a sense of pride and belonging.

When customers feel connected to your brand's mission, they're more likely to share their positive experiences.

3. Functional value

This is product focused.

For example, Sage added a "pay now" button to its invoicing tool to help customers like Sara receive payments faster.

This simple feature improves her business's cash flow, which she can reinvest, allowing her to talk about her experience positively with others.

4. Experiential value

This focuses on creating meaningful, relevant experiences.

To help Sara expand her influence, Sage invited her to contribute as a speaker in startup communities, positioning her as a thought leader while strengthening her connection to the brand.

By understanding these dimensions, you can tailor your interactions with advocates like Sara, packaging your offerings in ways that align with her needs.

This not only drives loyalty but enables them to advocate for you naturally.

The virtuous cycle of success

Advocacy creates a virtuous cycle that benefits both the customer and the brand. Here's how it works:

1. Increased product usage

Sara's advocacy leads her to use the product more frequently.

For instance, with the "pay now" feature, she can reinvest her earnings quickly, deepening her commitment to the software.

2. New customer acquisition

By introducing advocates like Sara to new startup communities within your network, she can reach potential clients.

This strengthens your advocacy index within that market, driving both brand loyalty and new customer acquisition.

3. Brand expansion and market reach

As Sara shares her experience, she helps expand reach.

For example, Sara's advocacy could reach a new micro-vertical and help you build a strong lead pipeline in a new space.

Advocacy is not just about solving one problem-it's about fostering a range of positive outcomes.

This is called the virtuous cycle of success, where every interaction between the customer and the brand strengthens engagement, enhances adoption, and fuels further advocacy.

Key takeaways for building an advocacy strategy

1. Get to know your customers

Advocacy begins with understanding.

Get a pulse on your customers' needs, preferences, and goals.

You're likely already gathering this information through customer research, events, and conversations with your sales team.

Use it to build targeted, goal-based advocacy.

2. Set boundaries

Not every happy customer is an advocate.

Rather than relying on broad post-event surveys, seek out customers who have taken specific actions that demonstrate advocacy.

For instance, Netflix asks new users if they joined based on a recommendation.

Focusing on real behavior rather than hypothetical responses provides a clearer picture of advocacy.

3. Foster team collaboration

Advocacy isn't a solo endeavour. It's a team effort that involves product, marketing, sales, and customer success.

Advocacy requires alignment across departments to ensure that every interaction reinforces the brand's value.

4. Get close to the commercials

Show stakeholders the tangible value of advocacy.

Share how metrics like LTV, growth, and reach could be positively impacted by advocacy efforts.

Aligning advocacy with commercial goals demonstrates its relevance to the bottom line.

5. Create an alignment across the team

To bring advocacy initiatives to life, teams must commit to shared goals and values.

When your cross-functional team is geared up to build experiences that matter to customers, advocacy can flourish, and customers become loyal ambassadors.

Final thoughts

Advocacy is more than a marketing tactic-it's a long-term strategy that builds lasting relationships and drives consistent growth.

As you've seen with Sara, advocacy's true power lies in the way it goes beyond transactions, creating a sense of community and shared purpose.

By fostering advocates, brands gain invaluable support from customers who believe in their mission and spread that passion to others.

Ultimately, an effective advocacy program is about delivering consistent value, fostering trust, and building genuine relationships.

By doing so, you create advocates who will continue to support, share, and celebrate your brand, driving sustainable growth for years to come.

Public link

Please use the above public link if you want to share this noodl on another website.