Customer Advocacy Rate
Get Started
Category:  
Analytical

The percentage of customers who actively recommend a company's products or services to others, acting as promoters.

What it Measures ?

How many of our customers recommend us to others.

Relevant StakeHolders 

Brand Manager, Customer Experience Lead

In-depth Use Case / Real-world Example

Customer Advocacy Rate measures the extent to which customers promote or recommend a company’s products, services, or brand to others. This is a critical indicator of customer loyalty and satisfaction. For example, a manufacturing company might track how often their customers refer their products to other businesses in their industry or share positive feedback in online forums or social media platforms. A high Customer Advocacy Rate indicates that customers are not only satisfied with the product but are also willing to become brand advocates, which can significantly drive word-of-mouth marketing. A key factor in increasing customer advocacy is ensuring excellent customer service, delivering high-quality products, and building trust over time. For instance, a manufacturer that consistently delivers reliable and efficient machinery might see high advocacy rates from loyal customers. Businesses often measure advocacy through Net Promoter Score (NPS), which asks customers how likely they are to recommend the brand to others. Advocates are typically categorized as those who score 9 or 10 on a scale from 1 to 10. To encourage advocacy, businesses can implement referral programs or loyalty initiatives, offer incentives for recommendations, or publicly recognize their most vocal customers. Increasing customer advocacy can result in organic growth, as potential customers are more likely to trust recommendations from peers over traditional advertisements.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Customers Advocating for Brand / Total Customers) * 100

Should Aim For
1
2
3
Track Similar KPIs
Focus on insights.
Not data preparation!
Get Started Today