Customer satisfaction and customer advocacy are two terms that are often used interchangeably in the business world, but they are not the same thing. While customer satisfaction is important for any business, customer advocacy takes things to the next level.
Let’s look at the difference between customer satisfaction and customer advocacy, and why both are essential for the success of your business.
What is the difference?
Customer Satisfaction
Customer satisfaction is the degree to which a customer is happy with a product or service. It is a critical metric that measures how well your business is meeting the expectations of your customers. If customers are satisfied with your product or service, they are more likely to continue doing business with you, which can lead to repeat sales and customer loyalty.
Customer satisfaction is typically measured using customer satisfaction surveys, which are sent to customers after they have made a purchase or received a service. These surveys ask customers to rate their level of satisfaction with various aspects of the product or service, such as quality, reliability, and customer service.
There is another key point here that is often overlooked or misunderstood. Satisfaction only measures a moment in time. Depending on when you measure it, your customer can give you a completely different responses at different points depending on what has happened for them.
While customer satisfaction is important, it is not enough to guarantee the long-term success of your business. A customer who is merely satisfied is unlikely to go out of their way to recommend your business to others.
Customer Advocacy
Customer advocacy goes beyond customer satisfaction. It is the degree to which a customer is willing to recommend your product or service to others. When a customer is an advocate for your business, they actively promote it to their friends, family, and colleagues. This can lead to new customers and increased revenue.
A customer advocate is someone who is not only satisfied with your product or service but is also passionate about it. There’s heart involved. They are willing to go out of their way to promote your business, whether it be by leaving positive reviews online, sharing their experience on social media, or even recommending your business to strangers.
Customer advocacy is typically measured using metrics such as Net Promoter Score (NPS), which asks customers how likely they are to recommend your business to others on a scale of 0-10. Customers who give a score of 9 or 10 are considered advocates.
Unlike satisfaction, advocacy is a much more enduring metric as it concerns sentiment. It does change over time, but not as rapidly or in an instant.
Why both are essential for the success of your business?
While customer satisfaction and customer advocacy are different, they are both essential for the success of your business. Customer satisfaction is the foundation upon which customer advocacy is built. If customers are not satisfied with your product or service, they are unlikely to become advocates for your business.
On the other hand, if customers are satisfied with your product or service, but are not advocates, you are missing out on a significant opportunity to grow your business. Customer advocacy can lead to increased brand awareness, new customers, and increased revenue.
Customer satisfaction and customer advocacy are two important metrics that every business should be tracking. While they are different, they are both essential for the success of your business. By focusing on both customer satisfaction and customer advocacy, you can build a loyal customer base that will help your business grow and thrive.
Customer satisfaction and customer advocacy are core topics of the nine capabilities of the customer-led organisation.
We cover off these and more in our new book coming out in May 2023 titled ‘Leading the Customer-led Revolution’.
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THE AUTHOR
Peter is a global leader in transforming SMEs, large businesses + organisations through the eyes of their customers. As a customer strategy catalyst, he brings over 25 years of experience in consulting projects for both commercial + government organisations in the UK, Australia + throughout Europe.
With unrivalled global business credentials + an enviable cross-industry portfolio – American Express, Terry White Chemmart, PPQ, EFTPOS, RICOH, HMRC, Murray Regional Tourism + News Limited – he is known to be one of the founding technicians of customer-led change, with a style that is engaging + thought-provoking.