4 Reasons Why Businesses Use Customer Advocacy Programs
Customer advocacy programs have been on the rise in popularity among brands worldwide. This can be attributed to the change in working methodology since the inception of social media. Customer advocacy programs have gained such importance because of the results they deliver – such as an increase in business profits in less time. Without further ado, we will discuss four major reasons why businesses use customer advocacy programs so extensively.
- Low Cost of Customer Acquisition: A brand makes considerable sales through references made by customers to their friends and relatives. This has become a viral integration system, as well as a sort of marketing strategy. The program helps the business grow by spreading awareness of products through hand-picked customers of the brand. If customers do not see value in a brand’s product, they are unlikely to refer it to their friends and family. The brand also stands the risk of losing its customers forever. We know, for a fact, that customer advocacy programs heighten sales by motivating customers to send more customer referrals.
- Competitive Edge: A loyal customer-following goes a long way in generating buzz and creating a positive brand image. A brand entering a new market will most certainly face stiff competition. Even in a niche market, the brand will have to find a way to survive high prices and the need for quality supplies. Such situations can become huge problems for brands, making them lose valuable customers as well as credibility and trust. This is avoidable. Customer advocacy programs help businesses by creating a promotional channel that runs parallel to your social media marketing strategy. They empower your most loyal advocates to actively promote your products and services to an extensive network of prospective customers on social media. It becomes easier to understand how customer advocacy programs work well when you hone-in on people’s tendency to make snap judgments of a product simply based off of feedback from someone they know who has had a first-hand experience with a brand.
- Increased Sales: When you have numerous customers advocating on your behalf through social media outlets, your business stands a better chance of striking a rhythm within the market. Influential customers recommending a business’ products and services to their network, builds trust in the market and increases acceptance of the business’ offerings. Customer advocates generate a demand in the market by spreading positive reviews of the brand through sharing their experiences. This is precisely why it becomes imperative that customer advocates are chosen wisely. Influential customers can create a tremendous increase in demand and raise sales. It is, therefore, important that the advocates are well motivated, which becomes easy when incentive such as exclusive offers, rewards, and points are given for referring your business to new customers. In turn, this generates engagement that leads to loyalty development and, ultimately, sales.
- Better Customer Service: The most important reason for businesses to use a customer advocacy program is the need to monitor how their customers feel that they are being treated. If a company sells one of the best products in the market, but does not treat its customers the right way, it will ultimately lose customers. There is great value in great customer service. In other words, the customer’s focus on the product usually comes after their focus on the quality of customer service. Customers tend to feel offended when they are not given the attention that they feel they deserve, especially when their inquiries are not attended to readily. The results are usually atrocious for the business. Customers start drifting away, end up choosing another brand, and rarely do they ever return. Customer attrition is, thus, a huge concern. Customer advocacy programs develop distinct touchpoints that help a brand address its customers’ queries through advocates. The customer advocates also act as brand representatives, allowing quicker exchange of information between customers and the brand.
Brands that tend to their customer’s needs find their place in the market quicker, enabling them to grow faster. Of course there will be resistance in the beginning, which is why customer advocacy programs offer quick and solid solutions that help a business capture the customer’s interest and breakdown any customer apprehensions about the product.