Measuring Customer Advocacy ROI: Top Challenges

Measuring ROI for customer advocacy programs is tough for B2B companies. Here's why:

• Hard to link advocacy to actual sales

• Non-financial benefits are tricky to measure

• Data often scattered across systems

• Long B2B sales cycles

• Choosing the right metrics is challenging

But don't worry, there are ways to tackle these issues:

| Challenge | Solution |
| --- | --- |
| Linking to sales | Use multi-touch attribution |
| Non-financial benefits | Create stand-in metrics |
| Scattered data | Connect your systems |
| Long sales cycles | Adjust your measurements |
| Metric choice | Mix short and long-term KPIs

These methods help show the real impact of advocacy. For example, Blackbaud's program hit a 37% conversion rate and nailed its yearly referral lead target in just 3 months.

Want to measure your advocacy ROI? Here's what to do:

1. Set clear goals

2. Pick relevant KPIs

3. Use tracking tools

4. Review and adjust regularly

Remember: good advocacy metrics can make a big difference. As Leslie Barrett from Sendoso puts it:

In this article, we'll dive into these challenges and show you how to overcome them.

Related video from YouTube

Why ROI Measurement Matters in Customer Advocacy

Measuring ROI for customer advocacy programs is crucial for B2B companies. Here's why:

It justifies budgets, guides decisions, shows business impact, and aligns with company goals.

Let's look at real-world examples:

Sendoso's Metrics Pack a Punch

Leslie Barrett from Sendoso shares some impressive stats:

These numbers make it easy to get leadership on board.

Sales Impact

ROI measurement can reveal how advocacy boosts sales. Check this out:

| Metric | Without Advocacy | With Advocacy | Improvement |
| --- | --- | --- | --- |
| Win rate | 20% | 22% | +2% |
| Deals won (out of 1,000) | 200 | 220 | +20 |
| Revenue impact (ACV $60k) | $12M | $13.2M | +$1.2M

A small win rate bump can mean big bucks.

Beyond the Dollar Signs

Don't forget about non-financial benefits:

• Brand awareness (social media mentions, website traffic)

• Customer satisfaction (NPS, satisfaction ratings)

• Product feedback (feature suggestions, bug reports)

Measuring both financial and non-financial ROI gives you the full picture.

Want to start measuring ROI? Here's how:

1. Set clear goals

2. Pick relevant KPIs

3. Use tracking tools (like Tableau or Amplitude)

4. Review and adjust regularly

Main Challenges in Measuring Customer Advocacy ROI

B2B companies often hit roadblocks when trying to measure their customer advocacy ROI. Here's why:

1. Linking Advocacy to Sales

It's tough to connect the dots between advocacy efforts and actual sales. Why? Because customer journeys are messy. You can't always tell if that big deal closed because of your advocacy program or something else.

2. Measuring Non-Financial Benefits

Some advocacy wins don't come with a price tag. Think brand awareness or customer loyalty. How do you put a dollar value on those? It's not easy.

3. Data Headaches

Companies often have data scattered all over the place. This leads to:

• Tracking methods that don't match up

• An incomplete picture of what's really going on

• Hours wasted on collecting and crunching numbers

4. B2B Sales Take Forever

In B2B, sales cycles can drag on for months (or even years). This makes it hard to say, "Yep, that advocacy effort from last year definitely led to this sale."

5. Metric Mayhem

Picking the right KPIs is like finding a needle in a haystack. You need numbers that show quick wins AND long-term impact. Not easy.

But it's not all doom and gloom. Some companies have cracked the code. Take Sendoso, for example:

Sendoso's got it figured out. They're using cold, hard numbers to show the value of their advocacy program.

And then there's Blackbaud:

Beahm's team saw their referral pipeline explode - we're talking 40x growth between 2013 and 2015. All thanks to their advocacy community.

So, how can you tackle these challenges? Here's the game plan:

1. Use multi-touch attribution to connect advocacy to sales

2. Create proxy metrics for those hard-to-measure benefits

3. Get your data systems talking to each other

4. Adjust your measurements for those long sales cycles

5. Mix short-term and long-term metrics for a balanced view

It's not easy, but it's worth it. Because when you can show the ROI of your advocacy program, you're not just guessing - you're proving your worth.

Ways to Overcome ROI Measurement Challenges

Measuring customer advocacy ROI can be tricky. Here's how to tackle it:

1. Use Multi-Touch Attribution

Don't just look at the last touchpoint. Track advocacy's impact throughout the sales process:

• Advocates influence 20% of early-stage deals

• Customer testimonials sway 15% of mid-funnel prospects

• Referrals directly lead to 10% of closed deals

This gives you a fuller picture of advocacy's value.

2. Create Stand-In Metrics for Non-Financial Benefits

Some benefits are hard to price. Measure them anyway:

• Brand sentiment: Track social media mentions and sentiment

• Customer loyalty: Check retention rates and upsells among advocates

• Product feedback: Count implemented feature suggestions

Sendoso found their advocates have a 20% higher retention rate. That's a clear win.

3. Connect Data Systems

Break down those silos. Get your data talking:

• Use a customer data platform to centralize info

• Integrate your CRM with your advocacy platform

• Set up automated cross-system reporting

Connected data gives you the full picture of advocacy's impact.

4. Adjust for Long Sales Cycles

B2B sales take time. Look at early indicators:

• Track engagement with advocate-generated content

• Measure deal speed when advocates are involved

• Monitor lead quality from advocacy programs

Blackbaud's referral pipeline grew 40x in two years. They saw impact before deals closed.

5. Create a Mixed Set of Metrics

Don't rely on just one metric. Use a mix:

| Short-term Metrics | Long-term Metrics |
| --- | --- |
| Referral rates | Customer lifetime value |
| Content engagement | Brand awareness scores |
| Lead quality | Market share growth

Measuring ROI for customer advocacy programs is tough for B2B companies. Here's why:

• Hard to link advocacy to actual sales

• Non-financial benefits are tricky to measure

• Data often scattered across systems

• Long B2B sales cycles

• Choosing the right metrics is challenging

But don't worry, there are ways to tackle these issues:

| Challenge | Solution |
| --- | --- |
| Linking to sales | Use multi-touch attribution |
| Non-financial benefits | Create stand-in metrics |
| Scattered data | Connect your systems |
| Long sales cycles | Adjust your measurements |
| Metric choice | Mix short and long-term KPIs

These methods help show the real impact of advocacy. For example, Blackbaud's program hit a 37% conversion rate and nailed its yearly referral lead target in just 3 months.

Want to measure your advocacy ROI? Here's what to do:

1. Set clear goals

2. Pick relevant KPIs

3. Use tracking tools

4. Review and adjust regularly

Remember: good advocacy metrics can make a big difference. As Leslie Barrett from Sendoso puts it:

In this article, we'll dive into these challenges and show you how to overcome them.

Related video from YouTube

Why ROI Measurement Matters in Customer Advocacy

Measuring ROI for customer advocacy programs is crucial for B2B companies. Here's why:

It justifies budgets, guides decisions, shows business impact, and aligns with company goals.

Let's look at real-world examples:

Sendoso's Metrics Pack a Punch

Leslie Barrett from Sendoso shares some impressive stats:

These numbers make it easy to get leadership on board.

Sales Impact

ROI measurement can reveal how advocacy boosts sales. Check this out:

| Metric | Without Advocacy | With Advocacy | Improvement |
| --- | --- | --- | --- |
| Win rate | 20% | 22% | +2% |
| Deals won (out of 1,000) | 200 | 220 | +20 |
| Revenue impact (ACV $60k) | $12M | $13.2M | +$1.2M

A small win rate bump can mean big bucks.

Beyond the Dollar Signs

Don't forget about non-financial benefits:

• Brand awareness (social media mentions, website traffic)

• Customer satisfaction (NPS, satisfaction ratings)

• Product feedback (feature suggestions, bug reports)

Measuring both financial and non-financial ROI gives you the full picture.

Want to start measuring ROI? Here's how:

1. Set clear goals

2. Pick relevant KPIs

3. Use tracking tools (like Tableau or Amplitude)

4. Review and adjust regularly

Main Challenges in Measuring Customer Advocacy ROI

B2B companies often hit roadblocks when trying to measure their customer advocacy ROI. Here's why:

1. Linking Advocacy to Sales

It's tough to connect the dots between advocacy efforts and actual sales. Why? Because customer journeys are messy. You can't always tell if that big deal closed because of your advocacy program or something else.

2. Measuring Non-Financial Benefits

Some advocacy wins don't come with a price tag. Think brand awareness or customer loyalty. How do you put a dollar value on those? It's not easy.

3. Data Headaches

Companies often have data scattered all over the place. This leads to:

• Tracking methods that don't match up

• An incomplete picture of what's really going on

• Hours wasted on collecting and crunching numbers

4. B2B Sales Take Forever

In B2B, sales cycles can drag on for months (or even years). This makes it hard to say, "Yep, that advocacy effort from last year definitely led to this sale."

5. Metric Mayhem

Picking the right KPIs is like finding a needle in a haystack. You need numbers that show quick wins AND long-term impact. Not easy.

But it's not all doom and gloom. Some companies have cracked the code. Take Sendoso, for example:

Sendoso's got it figured out. They're using cold, hard numbers to show the value of their advocacy program.

And then there's Blackbaud:

Beahm's team saw their referral pipeline explode - we're talking 40x growth between 2013 and 2015. All thanks to their advocacy community.

So, how can you tackle these challenges? Here's the game plan:

1. Use multi-touch attribution to connect advocacy to sales

2. Create proxy metrics for those hard-to-measure benefits

3. Get your data systems talking to each other

4. Adjust your measurements for those long sales cycles

5. Mix short-term and long-term metrics for a balanced view

It's not easy, but it's worth it. Because when you can show the ROI of your advocacy program, you're not just guessing - you're proving your worth.

Ways to Overcome ROI Measurement Challenges

Measuring customer advocacy ROI can be tricky. Here's how to tackle it:

1. Use Multi-Touch Attribution

Don't just look at the last touchpoint. Track advocacy's impact throughout the sales process:

• Advocates influence 20% of early-stage deals

• Customer testimonials sway 15% of mid-funnel prospects

• Referrals directly lead to 10% of closed deals

This gives you a fuller picture of advocacy's value.

2. Create Stand-In Metrics for Non-Financial Benefits

Some benefits are hard to price. Measure them anyway:

• Brand sentiment: Track social media mentions and sentiment

• Customer loyalty: Check retention rates and upsells among advocates

• Product feedback: Count implemented feature suggestions

Sendoso found their advocates have a 20% higher retention rate. That's a clear win.

3. Connect Data Systems

Break down those silos. Get your data talking:

• Use a customer data platform to centralize info

• Integrate your CRM with your advocacy platform

• Set up automated cross-system reporting

Connected data gives you the full picture of advocacy's impact.

4. Adjust for Long Sales Cycles

B2B sales take time. Look at early indicators:

• Track engagement with advocate-generated content

• Measure deal speed when advocates are involved

• Monitor lead quality from advocacy programs

Blackbaud's referral pipeline grew 40x in two years. They saw impact before deals closed.

5. Create a Mixed Set of Metrics

Don't rely on just one metric. Use a mix:

| Short-term Metrics | Long-term Metrics |
| --- | --- |
| Referral rates | Customer lifetime value |
| Content engagement | Brand awareness scores |
| Lead quality | Market share growth