How to Measure Your Brand’s Impact on Your Ability to Generate Advocacy
Referral Close Rate
Referrals are one of the best ways to measure how satisfied customers are with your products/services. In the end, people don’t recommend brands unless they like them.
Referrals can be inconsistent, and can shift based on the number of customers you have. In general, the more customers you have the more referrals you’ll get. So, if your business grows over a 6 month span your referrals will likely grow to.
But is that only due to having more customers or because of your brand?
That’s why we use Referral Close Rate (RCR) to measure your brand’s impact on advocacy. We’re measuring how often customers generate a referral when you ask for one.
The reason for this is your RCR is only affected by two things: your brand and your referral strategy. So, if you keep your referral strategy the same over a given time, you’ll see how your branding efforts affect the close rate.
As you can see above, the formula for measuring RCR is:
# of referrals requested / # of referrals generated
To best track this data we recommend recording it and breaking it down into monthly increments.
This way you can see if your RCR is increasing or decreasing month over month.
Note: If you change up your referral strategy (how you ask for referrals, incentives for referrals, etc) you need to isolate the data and only compare it to months that had the same referral strategy.
Every month track how many referrals you requested and how many referrals you generated. Calculate your RCR using the formula above and note it below.
Positive Mentions on Social Media
Another way to track advocacy is to track how often people are positively mentioning your brand on social media. The key word is ‘positive’. This does make it more difficult to track because you have to find a way to sort mentions into negative or positive (or you can add a neutral category as well).
Like referrals, customers will only leave positive mentions on social media if your brand had an impact on them.
One thing to be aware of is if you’re running social campaigns which request mentions. Those types of campaigns will skew this data.
Every month, track positive mentions on each social media platform you have a presence on. You want to compare how positive mentions each platform so can understand if your brand is having impact across all platforms or just some.
6 KPIs to Use for Calculating Brand ROI
Referral Close Rate & Positive Mentions on Social Media are two of six KPIs we’ve identified to help you track Brand ROI.
While you can read about those KPIs, we recommend going through our free Brand ROI mini-course. It covers all six KPIs, includes a workbook with all the formulas, and you’ll finish it in under an hour!
Signup and start taking the course right away.