Turning happy customers into customer advocates

Need more business? Customer advocates are your key to more leads — and as a result, more revenue. People are more likely to purchase a service or product based on a recommendation than ads they see or research they have to do themselves. In fact: Ninety-two percent of people trust recommendations from friends and family over any other type of advertising Positive reviews and user-generated content highly impact purchasing decisions as customers want to know real people are using the products and services they are considering “Word of mouth brings in 5 times more sales than paid media” Seventy-six percent of millennials and baby boomers surveyed are more likely to trust content shared by “normal” people than by brands. Referral marketing, advocacy marketing … whatever name you give it, turning your happy customers into ambassadors for your brand can have a big impact on both your reputation and your bottom line. In the wake of the global pandemic, word of mouth marketing via customer advocates is more important than ever. When budgets get tighter, and more people are online reading reviews to learn about the companies they are considering being patrons of, the businesses that have the most people shouting your brilliance from their digital rooftops will be the most likely to survive and thrive. Especially now, customers have their ear to the ground and are listening and watching to see what companies are doing – how they are treating their employees and users, if they are keeping safety top of mind, and even their political stance. It’s critical that you have brand ambassadors on your side, telling others why purchasing from your business is a good choice. Loyal customers vs. customer advocates What’s the difference between loyalty and advocacy anyway? A loyal customer will keep coming back. They will renew contracts and buy things you’re selling regularly. When you launch new courses, books, or other products – they’re the first in line. A customer advocate, though, is more than just loyal — they are your biggest cheerleaders. Customer advocates are the ones singing your praises, referring people to your business and bringing them into your doors. Through word-of-mouth, social media, review sites and more, customer advocates share how passionate they are about your company, your products or services, and everything you do. Customer advocates do the heavy lifting Consider the last time you made a purchase. You likely asked people for their referrals, and made your buying decision based on those recommendations. Perhaps MVE Media stated it best: “With referrals, you basically have someone vouching for you. Therefore, it is easier, because potential clients have a living proof that your services worked and they were good enough to be recommended by the referral.” In fact, MVE Media found that you have a 95-percent higher chance of converting that lead into a customer as well, because the referral did the hard sell and pitch on your behalf. How to acquire customer advocates Now that you know you need customer advocates, what’s the process of transforming a happy customer into your biggest fan, someone who’s willing to promote your business to others? This down-and-dirty checklist might help: 1. Ask for referrals. 2. Offer an incentive. 3. Stay in touch. 4. Nurture the relationship. 5. Turn new customers into new customer advocates. Could it really be that simple? Yes! Now let’s look at each step in this checklist a little closer, to help you get all the fangirls and fanboys spreading the news of your business! 1. Ask for referrals - You’ve wowed the customer and perhaps achieved repeat business. Now it’s time to ask for referrals. But, don’t just ask. Make it stupid simple for your satisfied customers to share your business information. For example, you could send an email they can forward to their database. Or you could share an image on social media and tag them with the ask in the caption or comments. The easier you make sharing your business with the world, the more likely people will be to actually do that for you. Still, asking is not going to be enough for most people to promote your business. Which brings us to step two. 2. Offer an incentive - The incentive is what gets the most loyal of customers jazzed up enough to shout your awesomeness from the rooftops! You might be wondering, though, what kind of an incentive will yield the best results? I’m so glad you asked. Here are the three best incentives: a. Coupons or discount codes for your products or services Everyone likes a good deal. And, if you give them a code or coupon that they can share with their friends, all the better. It will make your advocates feel good to spread the wealth for things they are already a fan of. Anytime a business can offer an incentive, it’s a win-win for not just the two parties that are purchasing, but also for the business. They acquired a new customer, and cemented a relationship with someone who is already a fan! b. Swag and invites to exclusive events Some people like to be the VIPs who get things others don’t have access to. That exclusivity factor is enticing. You could even call your customer advocates your street team, or your wolf pack, and make a spectacle of it. Let’s say you own a company that sells dog treats called Bob’s Barkery. Your street team could be called Bob’s Barkers, and you could host exclusive events like yappy hours (socially distanced of course!) where your customers can bring their dogs for treats, and their owners get treated to beer and wine. Everyone leaves with a custom shirt (including the pups) for additional promotions. Then, to take it to the next level: Offer an extra incentive that if they take pictures in this shirt and share on social media, they get entered to win a gift card for more treats for their dogs. Without having to spend too much money you are that much closer to more shares and hype for your business. c. Cold hard cash Who doesn’t love THAT as an incentive? You could offer your customer advocates cash in exchange for leads that convert. Something as simple as $50 cash for every five paying customers could mean bigger profits for you. 3. Stay in touch - The more you can keep in touch with your loyal customers, the more likely they are to transition into an advocate. A few ways to do this include: a. Automatic emails that you send on their birthdays and customer anniversaries. On the one-year anniversary of their first purchase you could send a note that says, “Happy anniversary,” along with a coupon to buy again. The month or day of their birthday send a nice note with a freebie to get them back in the doors. b. Send text messages, emails and even snail mail of news and upcoming events. c. Give them a phone call — no one really does that anymore, with the exception of that company who’s trying to reach everyone about their expired vehicle warranty, so perhaps it could help you stand out. d. Mail them a surprise care package. For cost purposes, obviously, you’ll want to save this for your customers who are frequenting your business the most, but you get the idea. e. Don’t forget to include your social media handles and relevant hashtags with your surprise care package. 4. Nurture the relationship - Keep nurturing that relationship even as new leads come in. The fastest way to lose a customer advocate? Stop showing them you care. Here’s the thing — people want to feel like they matter. When it seems like you genuinely have an interest in them, they are more likely to preach the gospel of your stellar customer service. The kicker is you can’t just squeeze some leads out of them and then drop them like a bad habit. You have to keep the love going. Don’t neglect them once you start getting more business. A long-term customer advocate is the goal here so that you can keep building on top of all the free promo. If they haven’t reached out in a while, or haven’t made a purchase, reach out to them. Don’t pitch them, just check in. Let them know how grateful you are that they are a part of your business’s community. 5. Turn new customers into new customer advocates - Once you start converting those leads from your current customer advocates into customers, you can start the process of transitioning them into advocates as well. Building relationships and making offers. Converting those offers to sales. Wowing them with the sale, and making them so happy to spread the news of your business. And ‘round and ‘round we go. With a little luck, and a lot of relationship building and nurturing, your business will have several customer advocates bringing you heaps of leads in no time. Who knows? You might get so busy you have to expand your business. Talk about a great problem to have! Source: Ashley Grant, 3/29/21.

The Pros and Cons of Getting Ahead on Your Mortgage

Some people like the peace of mind that comes with living debt-free. Others don’t mind a little debt hanging over their heads. Regardless of which camp you fall into, it’s wise to consider getting ahead on your mortgage payments. This isn’t to say there’s a black and white answer to this financial question. Doing so may or may not be the right choice for you. However, a closer look at the pros and cons should shed a bit more light on the issue and help you determine the best course of action. Pros: Depending on your financial goals and lifestyle, you may be able to get ahead on your mortgage — but should you? If you have the money to pay off your home loan early, there are a few benefits to doing so. 1. Freedom From Debt At some point or another, most people have to deal with debt. While some are comfortable with the reality of borrowing — feeling they have control over their finances with credit cards and loans — others are not. If you fall into that second category, you may want to consider getting ahead on your mortgage. Doing so will allow you to pay it off sooner so you can experience freedom from debt and a more carefree life. Your personal values might lead you to want to truly own your property, and that’s valid. 2. More Savings Putting more of your income toward your mortgage will leave less money for savings. Accelerating your payment timeline might mean making some short-term sacrifices or being mindful of bonuses and other financial windfalls. However, you won’t be in this situation for very long if you can pay off your debt more quickly. Once you’ve eliminated mortgage payments, you can begin saving more money than you would have otherwise. Imagine how much you can commit to your family time and charitable endeavors without worrying about your housing costs. 3. Less Interest The average interest rate on a 30-year fixed-rate mortgage is about 2.88% right now. If you used the full 30 years to pay off your mortgage, you might pay thousands of dollars in interest over that period. However, if you pay off your debt sooner, you’ll pay less interest, potentially saving lots of money in the long-term. This is funding you can put towards other concerns in decades to come, whether that’s supporting children, enjoying retirement, or managing residential care. 4. Option to Leverage Equity Putting a large chunk of money toward your loan balance can also help you build equity more quickly. Once you’ve paid off 20% of your loan, you can cancel any private mortgage insurance you may have and further lower your monthly payment. You can then leverage that equity and turn it into cash to cover renovations, emergencies, and other costs. Just be mindful of whether this is the best financial move for you — home equity lines of credit are not tax-deductible until 2026. Ultimately, how valuable your home equity is to your family comes down to your desire for improvements and whether or not you plan to sell in upcoming years. Cons: Of course, getting ahead on a mortgage isn’t a good choice for everyone. In fact, doing so can even come with a few disadvantages. 1. Insufficient Retirement Savings Depending on your financial situation, paying off your mortgage early can divert funds away from your tax-free retirement account. Subsequently, you’ll miss out on any interest you could have earned with those funds. Plus, you’ll give up the annual tax break you would have received from your 401(k) or IRA. 2. Small Emergency Fund Tying up more money in mortgage payments will also leave you with less income to put into savings or your emergency fund. If you’re comfortable with taking the risk and having less in savings, then getting ahead on payments may be the right choice for you. However, if you foresee a few unexpected costs in your near future, you might want to pay the minimum on your mortgage for a few months. 3. Less Diverse Investments Investing in your home and getting ahead on your mortgage may seem like a historically sound decision. However, you’re still putting all your eggs in one unreliable basket. Therefore, you may be better off maintaining your mortgage so you can diversify your investments. Doing so will allow you to hold more assets and attain more financial stability. 4. Lower Credit Sometimes, paying off your mortgage loan early can lower your credit score. Banks like reliable borrowers and often use consistent payments to determine whether or not you’re dependable. Thus, eliminating your mortgage in just a few years might be a red flag to lenders and quickly deflate your credit. Conclusion: Should You Get Ahead on Your Mortgage? Ultimately, the choice is yours. After carefully considering your finances and personal lifestyle, simply pick an option that works best for you. Talk to a financial adviser and homeowners who have already walked this path if you want some more advice. Remember, you can always refinance later on if you change your mind. Source: Evelyn Long, 3/14/21.