How To Reduce Churn & Boost Loyalty in Three Easy Steps by Leveraging Brand Advocates

Brand Advocates can help your brand reduce churn and boost loyalty. In this post we explore three ways to empower your Advocates and customers to help your brand reach those goals.

1. Involve highly satisfied customers in Advocacy activities

First, by involving highly-satisfied customers in advocacy activities like creating reviews and testimonials, you are increasing customer engagement --- a key driver of loyalty --- among your most valuable customers. A study by Comscore and Yahoo found that Brand Advocates are significantly more loyal, and are more likely to repurchase or recommend the specific brand than non-Advocates. (Source: “Engaging Advocates through Search and Social Media,” Comscore, Yahoo.)  The study used two respected scales of loyalty: the Burke SCO Scale and the Net Promoter Score.

2. New customers referred by Advocates are more loyal

Second, new customers referred by Brand Advocates will be more loyal than customers acquired through traditional marketing and promotions. According to research by customer loyalty expert Fred Reichheld, referred customers spend more money on each purchase, buy more often, and refer more frequently. Here’s what Reichheld says in the “The Loyalty Effect:”

“Customers who show up on the strength of a personal recommendation tend to be of higher quality – that is to be more profitable and stay with the business longer – than customers who respond to conquest advertising, sales pitches, or price promotions."

3. How to reduce churn?  Empower new customers to spread positive WOM

Studies prove that WOM is highly influential. 90% of consumers trust WOM; only 14% trust advertising (Source: Roper.) Negative WOM spreads like wildfire. Members who hear or read about negative WOM may cancel their memberships and even encourage others to do the same. By energizing your Advocates, Zuberance enables brands  to amplify positive WOM and increase loyalty.

The more involved your customers are with your brand, the less likely they are to churn. By leveraging Advocates to help promote these value-added activities among existing members, a Zuberance-powered program will further enable your brand to reduce churn.

As the Zuberance-powered program progresses, we quantify the impact of WOM on churn. For example, we can measure the loyalty levels of members referred as a result of the Zuberance-powered program vs. new customers who came in via other marketing approaches. This will enable you to create an additional metric in addition to the ones we have in place now (shares, clicks, reviews, impressions, conversions, etc.)