Customer Advocacy

Customer Advocacy refers to a business strategy focused on creating genuine advocates or promoters of a brand among its customers. It goes beyond customer satisfaction and loyalty, seeking to ensure that customers actively recommend and defend the brand in conversations and public forums, such as social media and review sites. Customer advocacy emphasizes long-term relationships by continuously focusing on customer needs and consistently delivering value.

When is Customer Advocacy Used?

Customer Advocacy is typically used in competitive industries where customer experience and word-of-mouth play significant roles in brand success. It is employed when companies want to strengthen customer relationships, improve brand loyalty, and build a reputation through positive customer recommendations. It's also valuable when launching new products or services, as customer advocates can help spread the word organically.

Pros of Customer Advocacy

Improved Brand Trust: Advocates provide authentic endorsements, which can boost trust and credibility more than traditional marketing.
Cost-Effective Marketing: Word-of-mouth marketing from advocates can reduce the need for expensive marketing campaigns.
Customer Retention: Engaging with customers and ensuring they are satisfied can significantly improve customer retention rates.
Business Growth: As customer advocates promote your brand, new customers are more likely to come in through organic channels.

Cons of Customer Advocacy

Requires Continuous Effort: Building and maintaining customer advocacy takes time and resources to keep customers engaged and satisfied.
Limited Immediate Impact: The effects of customer advocacy are often long-term and may not yield immediate results.
Unpredictable Outcomes: Advocacy relies on customer behavior, which can be unpredictable and difficult to control or fully harness.
Risk of Negative Advocacy: Unhappy customers may also become vocal critics, damaging the brand's reputation.

How is Customer Advocacy Useful for Product Managers?

For product managers, customer advocacy is invaluable in understanding the real-life application and perception of their products. It helps them:

Gather Authentic Feedback: Product managers can leverage customer advocates to gather honest and detailed feedback about their products.
Validate Product-Market Fit: Advocates can help PMs understand whether the product genuinely meets the needs of the target audience.
Drive Organic Growth: By ensuring customer satisfaction, PMs can convert users into advocates who organically promote the product.
Prioritize Features and Improvements: Feedback from advocates can help PMs prioritize which product features or improvements matter most to users.

When Should Customer Advocacy Not Be Used?

Customer advocacy should not be the focus:

During Early Product Development: When a product is still in its early stages or not fully stable, it's premature to rely on advocacy as a growth strategy.
If Customer Issues are Not Resolved: If the product still has fundamental problems or unresolved customer issues, pushing for advocacy may backfire.
In Highly Regulated or Niche Markets: Advocacy may not be as effective in industries where regulations or technical specifications, rather than customer opinions, primarily drive buying decisions.

Related Terms

← All Terms

No	Title	Brief
1	Brand Equity	The goodwill or positive identity associated with a brand.
2	New Product Proposal	A summary business plan for a new product concept.
3	Positioning Statement	A statement on how a product should be perceived relative to competitors.
4	Product Fact Book	A compilation of all information a company has on a product, its customers, and competitors.
5	Segment Management	Organizing internal decisions and job roles by market segment rather than by product or function.
6	Standard Industrial Classification (SIC)	Numeric codes assigned by the government to companies to designate their industry.
7	Unique Selling Proposition (USP)	The primary competitive differentiation of a product or service.
8	Variable Costs	Costs that vary directly with the level of production.
9	Category Killers	Large-scale companies that dominate their industries by operating more cost-effectively.
10	Contribution Margin	The amount of revenue left after subtracting incremental costs.