How to Build a Strong Customer Advocacy Program and Turn Satisfied Customers into Brand Ambassadors

In today’s SaaS landscape, where customer acquisition costs (CAC) are rising and trust in traditional marketing is declining, customer advocacy isn’t just a nice-to-have—it’s a strategic imperative. According to a 2023 McKinsey report, peer recommendations influence over 70% of B2B SaaS buying decisions. Yet, many companies underinvest in formal advocacy programs, missing a critical lever for growth, retention, and valuation uplift.

So, how can your SaaS company systematically develop a strong customer advocacy program and turn your happiest users into your most powerful brand ambassadors? Drawing on research from Harvard Business School, insights from SaaS leaders like Jason Lemkin, and data from sources like SaaS Capital and PitchBook, here’s a practical, evidence-based roadmap.

1. Start with the Right Metrics: Advocacy KPIs That Matter

Before you launch any program, you need to define success. Stanford’s research on innovation metrics suggests that clear KPIs drive better outcomes. For customer advocacy, focus on:

• Net Promoter Score (NPS): Track promoters (score 9–10) and segment them for advocacy opportunities.
• Customer Lifetime Value (CLTV) uplift: Measure whether advocates have higher retention and expansion rates.
• Referral conversion rate: How many referred leads become paying customers?
• Advocate engagement rate: Participation in case studies, webinars, reviews, etc.

As explored in SaaS Key Performance Metrics (KPIs) and Valuation Multiples, tracking these metrics not only optimizes your advocacy program but also strengthens your company’s valuation story for future M&A or fundraising events.

2. Identify and Segment Your Advocates

Not every happy customer will become an advocate. Harvard Business Review emphasizes the importance of segmentation: focus on customers who are not only satisfied but also influential and aligned with your brand values.

Use a combination of:

• NPS surveys to identify promoters.
• Product usage data to find power users.
• Social listening tools to spot customers already talking about you.

Then, tier your advocates based on their potential impact—e.g., “Strategic Advocates” (C-level users at marquee accounts) vs. “Community Advocates” (active users in niche communities).

3. Create Structured Advocacy Opportunities

According to David Skok’s SaaS scaling frameworks, frictionless participation is key. Don’t just ask customers to “spread the word”—offer clear, valuable ways to engage:

• Customer Advisory Boards: Invite top advocates to shape your roadmap.
• Case Studies and Testimonials: Make it easy with pre-written drafts and professional photography.
• Referral Programs: Offer meaningful rewards (e.g., charitable donations, exclusive access, or discounts).
• Speaking Opportunities: Feature advocates at webinars, podcasts, or industry events.

Companies that formalize these pathways see 2–3x higher advocate participation rates, per SaaS Capital’s 2023 survey.

4. Leverage Technology to Scale Advocacy

Emerging technologies are reshaping customer engagement. AI-driven platforms like Influitive, SlapFive, and Crowdvocate allow you to automate advocate identification, personalize outreach, and track engagement ROI.

Integrating advocacy into your CRM and marketing automation stack ensures that customer success, marketing, and sales teams stay aligned—a best practice emphasized in Wharton’s SaaS go-to-market courses.

5. Align Advocacy with Financial and Strategic Goals

Customer advocacy isn’t just a marketing initiative—it’s a growth lever that impacts your bottom line. As discussed in Exit Business Planning Strategy, companies with strong customer engagement metrics often command higher ARR multiples during M&A processes.

To maximize strategic value:

• Quantify the revenue impact of advocacy-driven referrals and expansions.
• Highlight advocacy metrics in board reports and investor updates.
• Incorporate advocate feedback into product development to drive innovation and stickiness.

Advisors like iMerge often use proprietary valuation models that factor in customer engagement scores when assessing acquisition viability—underscoring the financial importance of a robust advocacy program.

6. Foster a Culture of Customer Obsession Internally

Finally, advocacy starts from within. As Aaron Levie, CEO of Box, famously said, “Customer obsession is the only sustainable advantage.” Build internal KPIs around customer success, celebrate advocate wins in all-hands meetings, and incentivize teams based on customer outcomes, not just internal metrics.

Employee engagement and customer advocacy are deeply linked. Research from Wharton shows that companies with high employee NPS scores also tend to have higher customer NPS scores—a virtuous cycle that drives both retention and growth.

Conclusion: Advocacy as a Strategic Growth Engine

Building a strong customer advocacy program isn’t about asking for favors—it’s about creating a structured, scalable system that aligns customer success with your company’s strategic goals. By tracking the right KPIs, leveraging technology, and embedding advocacy into your culture, you can turn your happiest customers into your most powerful growth engine.

Scaling fast or planning an exit? iMerge’s SaaS expertise can guide your next move—reach out today.