Customer Advocacy is when the customer goes out of their way to recommend the company to their friends, family and business colleagues.
At its core, CX is interested in Customer Lifetime Value (CLV). What value is each customer worth, over time, to the company? This is about what the customer spends but also about how the customer behaves and how that customer ‘speaks’ about the company. We call them Advocates.
The New Form of Customer Acquisition
When we deliver CX Excellence, the customer becomes an advocate for the company, selling it on your behalf to friends, family and colleagues.
Traditional Customer Acquisition is done through marketing. This can be very expensive and bring low – or low-quality, results. Acquiring new customers through recommendations of your current ones will bring you customers that are ‘hot leads’ or customers with high potential to become loyal advocates in the near future as well.
Why is customer advocacy important?
- It is a much more cost-efficient method, especially in times when advertising costs are skyrocketing. Since people do not trust advertisements anymore, it is harder to get conversions and thus it costs more.
- Customers are more likely to trust the brand from the start if it is recommended by someone they know and trust.
- Customers who have become advocates are not only bringing in new customers through their recommendations but also through their loyalty and are willing to spend more and more often.
- If done correctly, your customers will feel valued and appreciated. They will feel like they are a part of something bigger.