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Customer advocacy metrics and analytics blog

Customer Advocacy: Effective Metrics and Analytics

Rosie Brown
By Rosie Brown — October 17, 2023 -

Read time:  9 mins

"How do you measure customer advocacy in today's digital landscape?" A question that customer leaders at many top brands ask us. Though we're in an era where likes and shares often steal the spotlight, customer advocacy goes much deeper. It isn’t just about those fleeting online interactions; it's about cultivating genuine brand champions who eagerly sing your praises. For those brands ready to elevate their customer advocacy game, diving into the metrics and analytics that truly matter is a game-changer. Dive into this piece with us as we venture beyond surface-level engagements and unpack the data-driven layers of authentic customer advocacy.


Moving Beyond Surface Engagement: The Need for Deeper Metrics

At its core, customer advocacy is about loyal and satisfied customers willingly championing your brand. However, measuring the effectiveness of these advocates goes far beyond counting likes and shares. To truly understand the impact of customer advocacy, businesses need to analyse deeper metrics.

Effective advocacy metrics can distinguish between active and passive advocacy, identifying customers who are promoters of your brand. You can then recognise and nurture brand champions, who play a vital role in providing testimonials, referrals and social proof.


Measuring True Impact: From Awareness to Action in Advocacy

The journey of customer advocacy consists of various stages, from initial brand awareness to meaningful, action-oriented advocacy. This journey can be quantified and analysed to gain valuable insights.

By measuring the progression from awareness to action, you can pinpoint the most influential touch-points in your customer’s journey. Armed with this knowledge, you can tailor your marketing efforts to create campaigns that resonate with your audience, moving beyond observation to active influence.


Quantifying Customer Sentiment: Analysing Advocacy-Driven Conversations

Effective customer advocacy often triggers organic conversations about your brand. These conversations reflect more than just mentions; they represent genuine interest and endorsement. To harness the power of these dialogues, it’s essential to quantify customer sentiment and dive into advocacy-driven conversations.

Tools for sentiment analysis monitor discussions related to your brand, enabling you to gauge overall sentiment and identify key discussion topics. This data empowers you to fine-tune your messaging and engage with your advocates more effectively.


Tracking Referrals and Conversions: Advocacy’s Direct ROI

One of the tangible benefits of customer advocacy is the generation of referrals and purchase conversions. Advocates are more likely to recommend your product or service to others, leading to new customers and increased revenue. To measure the direct return on investment (ROI) of your advocacy efforts, robust tracking tools are essential.

Mention Me's comprehensive referral tracking system monitors the source of each referral and subsequent conversions. This data helps you quantify the impact of customer advocacy and enables you to reward advocates for their efforts. By identifying the advocates driving the most conversions, you can incentivise and nurture them effectively, ensuring their advocacy continues to be a revenue-generating engine.


Engagement Quality over Quantity: Assessing Meaningful Interactions

In the dynamic world of modern marketing, not all customer interactions are created equal. While it’s tempting to focus solely on the sheer quantity of engagements, a better strategy revolves around evaluating their quality.

Moving Beyond Superficial Metrics: Metrics like the number of likes, shares or comments on social media might initially seem indicative of engagement; however, they often fail to capture the essence of a customer’s commitment. Advocacy-driven marketing is about nurturing relationships with customers who genuinely resonate with your brand.

Measuring Depth of Engagement: To assess the quality of engagement, it’s essential to look at the depth of interactions. Advocacy isn’t merely about passive consumption of your content; it’s about active participation and endorsement. Metrics should encompass actions such as referrals, reviews, recommendations and direct advocacy efforts.

Tailoring Engagement Strategies:  Once you’ve identified your most dedicated advocates, you can tailor your engagement strategies to their preferences anddeliver next best actions through predictive advocacy insights. Quality interactions allow you to understand what resonates with your advocates and what motivates them to advocate on your behalf. This insight enables you to create personalised experiences, strengthening the bond between your brand and its advocates.

Nurturing Relationships: Meaningful interactions go beyond transactional moments; they contribute to building lasting relationships. Advocacy is often rooted in trust, which is nurtured through consistent, high-quality engagements and targeted CRM campaigns. Prioritise quality interactions by improving segmentation and personalisation via marketing automation workflows. In doing so, you’ll foster stronger connections with your customers, leading to more significant advocacy-driven efforts. 


Advocacy Funnel Analysis: Identifying Critical Touch-points

The customer advocacy journey resembles a funnel, with different touch-points along the way. From the initial contact to becoming a vocal advocate, critical stages define this journey. Understanding and optimising this path can significantly boost your efforts.

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Analysing the advocacy funnel identifies bottlenecks and drop-off points in the customer advocacy program. This data-driven approach streamlines the advocacy journey, ensuring a smoother transition from casual one-time purchasers to dedicated customer advocates. 


Customer Influence Mapping: Unveiling Hidden Advocacy Networks

Customer advocacy often extends beyond individual champions. Advocates form networks and communities that amplify their collective impact. Discovering and leveraging these hidden advocacy networks can unlock new opportunities for engagement and outreach.

By identifying clusters of advocates connected through common interests, demographics or affiliations, you can create targeted advocacy campaigns. These campaigns resonate with specific customer segments, maximising the reach and impact of your advocacy efforts. It’s about harnessing the power of communities to enhance your brand’s influence.

The Mention Me platform identifies valuable referral networks and patterns of ‘micro-influencers’ within brands we work with. This image shows the power of customer advocacy in driving sustainable business growth.


Loyalty and Retention Effects: Advocacy's Impact on the Customer Lifecycle

Customer advocacy isn’t limited to acquiring new customers; it plays a vital role in nurturing and retaining existing ones, profoundly influencing the entire customer lifecycle. When customers evolve into advocates, they exhibit higher levels of loyalty, engagement, and advocacy-driven behaviour, which have far-reaching effects throughout the customer journey.

Building Lasting Loyalty: Advocates’ loyalty goes beyond mere transactions. Advocates are more likely to stay with your brand through various challenges, minor inconveniences or even competitive pricing fluctuations. Their loyalty is rooted in trust, a sense of belonging and an unwavering belief in the value your brand offers.

This enduring loyalty translates into consistent and prolonged customer relationships. Advocates often become long-term patrons, making repeat purchases and frequently interacting with your brand. Through the strategic use of email campaigns, including reminders for coupon redemption and encouraging advocates to re-share, BrandAlley — the foremost e-commerce destination for premium and luxury off-price brands in the United Kingdom — has successfully boosted repeat purchase rates by 25%.

Reduced Churn: In fiercely competitive markets, customer churn is a significant concern for businesses. However, the presence of advocates significantly reduces churn rates. These advocates are less likely to switch to competitors because they have formed a genuine emotional connection with your brand. Their advocacy efforts and investment in promoting your products or services further strengthen their commitment. In essence, customer advocacy works as a strong retention strategy, helping you maintain a stable customer base even in turbulent markets.

According to Semrush, the likelihood of making a sale to an established customer falls within the range of 60% to 70%, significantly surpassing the narrower probability window of 5% to 20% when targeting new customers. Additionally, existing customers exhibit a 50% higher willingness to experiment with your latest offering and tend to increase their average order value (AOV) by 31%. When using advocacy data to improve customer experience, Mention Me sees average order values (AOV) of brands we work with increase a further 20%.

Positive Word of Mouth: Advocacy isn’t confined to online interactions; it extends to real-life conversations. Advocates frequently share their positive experiences with friends, family and colleagues, effectively becoming brand ambassadors. These organic, personal recommendations carry significant weight, often leading to new customer acquisitions.

The ripple effect of positive word-of-mouth marketing amplifies your brand’s reach and credibility. Advocates, driven by their passion for your brand, act as catalysts in expanding your customer base. As they share their experiences and recommend your products or services, they influence others to engage with your brand. Going back to the BrandAlley example above, thanks to its customer advocacy initiatives, the company has also discovered that customers referred by a friend have the potential to bring in four times as many new customers.

Increased Customer Lifetime Value (LTV): Advocacy-driven customers contribute significantly to your brand’s bottom line by extending the customer lifecycle. At Mention Me, we’ve found that brand fans have a 56% higher LTV compared to other customers with consistent repeat purchases, enthusiasm for upselling and cross-selling opportunities and resistance to churn all contributing to increased revenue over the long term.

Additionally, loyalty extends far beyond a single transaction; it becomes a lasting relationship with your brand. The continuous advocacy-driven behaviour exhibited contributes positively to your brand’s financial health by enhancing LTV and driving sustainable growth. Drawing from our extensive experience collaborating with over 400 global brands, referred customers typically exhibit twice the Lifetime Value (LTV) compared to those non-referred.


Actionable Insights: Using Data to Optimise Customer Advocacy Strategies

To sum up, in order to fully harness the power of customer advocacy, businesses must embrace metrics and analytics that provide actionable insights. Do you want to unlock the full power of customer advocacy for your brand? Let us tell you a little bit about Mention Me.

Mention Me is your Customer Advocacy Intelligence Platform that puts customer love at the heart of your marketing strategies. We offer tools and expert support designed to identify, activate and nurture your brand's most valuable customers.

Ready to turn your satisfied customers into life-long, passionate advocates? Let’s start a conversation. Our solution empowers you to identify true advocates, harness their authenticity and drive organic word-of-mouth growth. It’s time to take action and elevate your customer advocacy game with Mention Me. Get in touch today!

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