Sep 26, 2024

9 Key Advocacy KPIs to Measure Program Success

Discover 9 crucial KPIs for measuring the success of your customer advocacy program and how they impact your business growth.

Want to know if your customer advocacy program is working? Here are 9 essential KPIs to track:

  1. Net Promoter Score (NPS)

  2. Customer Satisfaction Score (CSAT)

  3. Referral Rate

  4. Customer Lifetime Value (CLV)

  5. Social Media Engagement

  6. Content Engagement Rate

  7. Advocacy Participation Rate

  8. Revenue Impact

  9. Customer Retention Rate

These metrics help you:

  • See if you're hitting business goals

  • Prove advocacy is worth the investment

  • Find areas to improve

Here's a quick comparison of the main KPIs:

| KPI | What It Measures | Why It Matters |
| --- | --- | --- |
| NPS | Customer loyalty | Shows potential advocate base |
| CSAT | Customer happiness | Gives instant feedback |
| Referral Rate | New business from existing customers | Tracks word-of-mouth impact |
| CLV | Total customer value over time | Spots top spenders |
| Social Media Engagement | Brand interactions online | Shows content effectiveness |
| Content Engagement Rate | How people interact with your content | Guides content strategy |
| Advocacy Participation Rate | Program adoption | Identifies active advocates |
| Revenue Impact | Money generated from advocacy | Ties to business goals |
| Customer Retention Rate | How well do you keep customers | Links to long-term satisfaction

By tracking these KPIs, you'll get a clear picture of your advocacy program's success and where to focus your efforts.

Related video from YouTube

Net Promoter Score (NPS)

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NPS measures customer advocacy with one question: "How likely are you to recommend us?"

Here's the breakdown:

  • 9-10: Promoters

  • 7-8: Passives

  • 0-6: Detractors

Your NPS = % Promoters - % Detractors. It ranges from -100 to +100.

Why care? NPS shows your potential advocate base. Higher scores mean more customers willing to spread the word.

Quick facts:

  • +50 is great

  • Industry averages vary (+40 for Consumer Brands, -5 for Telecom)

  • 7% NPS increase = 1% revenue growth

Boost your NPS:

1. Act fast

Respond to feedback within 48 hours. It can boost retention by 12%.

2. Go deeper

Ask "why?" to understand scores better.

3. Convert Passives

They're almost there. A little push could turn them into advocates.

Remember: NPS isn't just a number. It's a tool for improving customer experience.

2. Customer Satisfaction Score (CSAT)

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CSAT tells you how happy your customers are. It's a quick way to check if they like what you're doing after they interact with you.

Here's the deal:

  • Ask customers to rate you (usually 1-5 or 1-10)

  • Figure out how many are happy (those who give you a 4 or 5 on a 5-point scale)

The math:

<code>CSAT = (Happy customers / Total responses) x 100
</code>

Why should you care? CSAT:

  1. Gives you instant feedback

  2. Shows you where to improve

  3. Links to customer loyalty and money

Get this: Harvard Business Review found that even a tiny bump in CSAT can mean a lot more cash.

Want to boost your CSAT? Try these:

  • Survey right after interactions

  • Keep it short and sweet

  • Act fast on feedback

  • Watch your CSAT over time

But here's the thing: CSAT isn't just a number. It's about using that info to make customers happier.

Some CSAT facts:

  • Aim for 80%+

  • In 2022, CSAT software was a $1.5 billion market

  • Companies scoring 90+ had 1.5x higher customer lifetime value than those at 80 or below

CSAT vs. NPS:

| What | CSAT | NPS |
| --- | --- | --- |
| Looks at | Specific interactions | Overall loyalty |
| How often | After each interaction | Less (e.g., quarterly) |
| Asks | "How satisfied were you?" | "Likely to recommend?" |
| Scale | Usually 1-5 or 1-10 | 0-10

3. Referral Rate

The referral rate shows how often your customers bring in new business. It's a key metric for your advocacy program.

Here's the formula:

<code>Referral Rate = (Number of Referral Purchases / Total Purchases) x 100
</code>

Let's say you had 100 purchases last month and 2 were referrals. Your referral rate? 2%.

The global average is 2.35%. But it varies:

| Industry | Average Referral Rate |
| --- | --- |
| E-commerce | 2.33% |
| Electronics | 3.4

Why care about referral rate?

  1. It's cheap. Referrals convert better than other channels.

  2. It builds trust. People listen to friends and family.

  3. It boosts revenue. The average e-commerce referral? $155,000 per year.

Want to boost your referral rate?

  • Make sharing a breeze. One-click options work best.

  • Reward both sides. The referrer AND the new customer.

  • Shout about it. Emails, social media, your website - use them all.

  • Keep testing. Try different rewards and messages.

Take Dropbox. They grew 3900% in 15 months by making referrals part of their onboarding. That's the power of referrals.

4. Customer Lifetime Value (CLV)

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CLV shows how much cash a customer brings in over time. It's crucial for measuring advocacy success.

Here's the formula:

<code>CLV = Purchase Frequency x Average Order Value x Average Customer Lifespan
</code>

Let's look at Starbucks:

Customers spend $5.90 per visit, 4.2 times a week. That's $24.30 weekly. Over 20 years (their average customer lifespan), it totals $25,272.

Why CLV matters:

  1. Spots top spenders

  2. Guides customer acquisition costs

  3. Boosts profits (5% better retention can mean 25-95% more profit)

Improving CLV:

  • Upsell and cross-sell

  • Create loyalty programs

  • Personalize service

Fun fact: Keeping customers is WAY cheaper than finding new ones. It's 5-25 times more expensive to get a new customer than to keep an existing one.

Want to know if your customer advocacy program is working? Here are 9 essential KPIs to track:

  1. Net Promoter Score (NPS)

  2. Customer Satisfaction Score (CSAT)

  3. Referral Rate

  4. Customer Lifetime Value (CLV)

  5. Social Media Engagement

  6. Content Engagement Rate

  7. Advocacy Participation Rate

  8. Revenue Impact

  9. Customer Retention Rate

These metrics help you:

  • See if you're hitting business goals

  • Prove advocacy is worth the investment

  • Find areas to improve

Here's a quick comparison of the main KPIs:

| KPI | What It Measures | Why It Matters |
| --- | --- | --- |
| NPS | Customer loyalty | Shows potential advocate base |
| CSAT | Customer happiness | Gives instant feedback |
| Referral Rate | New business from existing customers | Tracks word-of-mouth impact |
| CLV | Total customer value over time | Spots top spenders |
| Social Media Engagement | Brand interactions online | Shows content effectiveness |
| Content Engagement Rate | How people interact with your content | Guides content strategy |
| Advocacy Participation Rate | Program adoption | Identifies active advocates |
| Revenue Impact | Money generated from advocacy | Ties to business goals |
| Customer Retention Rate | How well do you keep customers | Links to long-term satisfaction

By tracking these KPIs, you'll get a clear picture of your advocacy program's success and where to focus your efforts.

Related video from YouTube

Net Promoter Score (NPS)

undefined

NPS measures customer advocacy with one question: "How likely are you to recommend us?"

Here's the breakdown:

  • 9-10: Promoters

  • 7-8: Passives

  • 0-6: Detractors

Your NPS = % Promoters - % Detractors. It ranges from -100 to +100.

Why care? NPS shows your potential advocate base. Higher scores mean more customers willing to spread the word.

Quick facts:

  • +50 is great

  • Industry averages vary (+40 for Consumer Brands, -5 for Telecom)

  • 7% NPS increase = 1% revenue growth

Boost your NPS:

1. Act fast

Respond to feedback within 48 hours. It can boost retention by 12%.

2. Go deeper

Ask "why?" to understand scores better.

3. Convert Passives

They're almost there. A little push could turn them into advocates.

Remember: NPS isn't just a number. It's a tool for improving customer experience.

2. Customer Satisfaction Score (CSAT)

undefined

CSAT tells you how happy your customers are. It's a quick way to check if they like what you're doing after they interact with you.

Here's the deal:

  • Ask customers to rate you (usually 1-5 or 1-10)

  • Figure out how many are happy (those who give you a 4 or 5 on a 5-point scale)

The math:

<code>CSAT = (Happy customers / Total responses) x 100
</code>

Why should you care? CSAT:

  1. Gives you instant feedback

  2. Shows you where to improve

  3. Links to customer loyalty and money

Get this: Harvard Business Review found that even a tiny bump in CSAT can mean a lot more cash.

Want to boost your CSAT? Try these:

  • Survey right after interactions

  • Keep it short and sweet

  • Act fast on feedback

  • Watch your CSAT over time

But here's the thing: CSAT isn't just a number. It's about using that info to make customers happier.

Some CSAT facts:

  • Aim for 80%+

  • In 2022, CSAT software was a $1.5 billion market

  • Companies scoring 90+ had 1.5x higher customer lifetime value than those at 80 or below

CSAT vs. NPS:

| What | CSAT | NPS |
| --- | --- | --- |
| Looks at | Specific interactions | Overall loyalty |
| How often | After each interaction | Less (e.g., quarterly) |
| Asks | "How satisfied were you?" | "Likely to recommend?" |
| Scale | Usually 1-5 or 1-10 | 0-10

3. Referral Rate

The referral rate shows how often your customers bring in new business. It's a key metric for your advocacy program.

Here's the formula:

<code>Referral Rate = (Number of Referral Purchases / Total Purchases) x 100
</code>

Let's say you had 100 purchases last month and 2 were referrals. Your referral rate? 2%.

The global average is 2.35%. But it varies:

| Industry | Average Referral Rate |
| --- | --- |
| E-commerce | 2.33% |
| Electronics | 3.4

Why care about referral rate?

  1. It's cheap. Referrals convert better than other channels.

  2. It builds trust. People listen to friends and family.

  3. It boosts revenue. The average e-commerce referral? $155,000 per year.

Want to boost your referral rate?

  • Make sharing a breeze. One-click options work best.

  • Reward both sides. The referrer AND the new customer.

  • Shout about it. Emails, social media, your website - use them all.

  • Keep testing. Try different rewards and messages.

Take Dropbox. They grew 3900% in 15 months by making referrals part of their onboarding. That's the power of referrals.

4. Customer Lifetime Value (CLV)

undefined

CLV shows how much cash a customer brings in over time. It's crucial for measuring advocacy success.

Here's the formula:

<code>CLV = Purchase Frequency x Average Order Value x Average Customer Lifespan
</code>

Let's look at Starbucks:

Customers spend $5.90 per visit, 4.2 times a week. That's $24.30 weekly. Over 20 years (their average customer lifespan), it totals $25,272.

Why CLV matters:

  1. Spots top spenders

  2. Guides customer acquisition costs

  3. Boosts profits (5% better retention can mean 25-95% more profit)

Improving CLV:

  • Upsell and cross-sell

  • Create loyalty programs

  • Personalize service

Fun fact: Keeping customers is WAY cheaper than finding new ones. It's 5-25 times more expensive to get a new customer than to keep an existing one.