Put Your Customers First and Let them Do the Talking. Get Your Guide on How to Build an Advocacy Growth Engine.

Let’s take a deeper dive into each of these three strategies, how you can leverage them, and how you can track your customer behaviors to make Earned Growth Rate your top KPI.

Social Interactions

An average person spends approximately 2.5 hours on social media every day, some a lot more. During these sessions, the user is either sharing information or collecting it. The content could be anything from entertainment to education and everything in between. Most of the time, users are talking about things they like and enjoy—be it music, movies, products, services, or even innovative marketing campaigns and ads. A little motivation, in the form of rewards and incentives, can encourage users to talk about your brands and services. It’s really that simple.

71% of customers that are satisfied with the brand they purchased from are likely to recommend it to others on social media.

(Source: Oberlo)

According to a study by Oberlo, 71% of customers that are satisfied with the brand they purchased from are likely to recommend it to others on social media. Paid content on social media also has a tremendous reach. Sprout Social attributes a 29% success rate to social media marketing, second only to marketing through search engine optimization. This organic promotion from satisfied customers is priceless.

62% of emotionally engaged customers will advocate for a brand on social networks.

(Source: Digital Transformation Institute)

When you leverage your loyalty program and reward this behavior, you’ll be surprised at how quickly your reach, awareness, and even new customer acquisition multiply. Loyalty builds emotional customer-to-brand bonds. The Digital Transformation Institute reports 62% of emotionally engaged customers will advocate for a brand on social networks.

So, how do you encourage your customers to organically promote your brand and products on social media? Depending on your brand identity, guidelines, and target group preference, you can recognize and reward a wide range of actions to incentivize your customer, including:

  • arrowMentioning your brand or posting about you from personal accounts
  • arrowCreating original content in the form of pictures, audio, and video, specifically about your brand
  • arrowSharing content created by your brand
  • arrowSharing referral and/or promotional links
  • arrowTagging friends on your brand page

The options for social media campaigns are only limited by your imagination. The more innovative the idea, the better the reach. To gauge the impact of your social interactions and campaigns, it’s crucial to have a working knowledge of certain metrics. You can keep track of shares and posts through specifically designed hashtags but you need the expertise and experience of a loyalty partner like Annex Cloud to amplify your social media reach, measure campaign efficiency, keep track of your referrals, and have plenty of ways to reward your customers.

Loyalty Strategy

Reichheld first introduced the term ‘promoters’ in 2003 with the Net Promoter Score metric. Promoters are basically happy customers that organically promote the brand within their network. In Winning on Purpose, Reichheld elaborates how happy customers and promoters have the potential to take a small startup to inexplicable heights and why prominent businesses like Amazon and Apple go out of their way to create promoters. But how exactly do you create promoters? The easiest and most effective strategies to create promoters are through loyalty and referral programs.

86% of loyal consumers will recommend a brand to friends and family.

(Source: KPMG)

In the past decade, loyalty programs have emerged as the most efficient, ethical, and legal means of collecting first-party data at scale, which is essential to creating meaningful personalized experiences. With the looming phaseout of third-party cookies from Google, and with Amazon and Apple following suit, accumulating first-party data has become critical for business success.

Loyalty programs encourage customers to share their information with a brand they trust in exchange for that brand using their information to deliver a personalized experience uniquely relevant to them. This includes timely and relevant rewards, incentives, and other benefits. This data can be used in various ways to improve business and marketing strategies, know your audience better and, most importantly, create value-based experiences. When a brand goes out of its way to create individualized experiences for its customers, the results speak for themselves in the form of increased retention rates, customer lifetime value, customer satisfaction, even customer acquisition rate.

First-party data is more accurate, provides better insights, has higher conversion rates, and is a priority for maintaining customer relationships.

(Source: Forbes)

Rewards can be a great way to recognize customers for promoting your brand. A referral program ensures a customer earns points or incentives for every referral. Every reward further encourages customers to bring in more customers to reach higher tiers with bigger, maybe even exclusive, benefits. With loyalty programs, you can create active brand promoters that organically promote your brand and help bring in new customers.

Advocacy Marketing

According to a Qualtrics 2022 study, 93% of consumers admitted online reviews and recommendations influence their purchase decision. Now, more than ever, consumers trust genuine recommendations from other customers or people they know and trust over paid advertisements and commercials. Word-of-mouth marketing brings in five times more sales than paid media, which includes online reviews and recommendations. 82% of new-age customers—the Gen Zs—trust their friends and family for genuine product recommendations and advice. According to a Forbes article, Millennials (with a spending power of $2.5 trillion) are two times more likely to be influenced by word-of-mouth marketing.

Word-of-mouth recommendations play a crucial part in 80% of all B2B and B2C deals.

(Source: Harvard Business Review)

So, how can you truly harness the power of word-of-mouth marketing, and encourage customers to actively spread the good word about your business? The answer is simple—Advocacy Marketing. Today, investing in advocacy marketing is not just a smart move, but a necessity if you want to expand your brand reach, as well as consistently improve retention and acquisition rates.

Customers who get referred by a friend or other customers have a 16% higher lifetime value compared to non-referred customers.

(Source: HBR)

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