1. Customers as Ambassadors
People mistake the term Customer Advocate. A Customer Advocate is one who works for your company but
advocates and works to make the company customer-centric and customer friendly.
If the Customer comes first (thanks to your Customer Advocates) and if you are truly creating value for the
Customer, he will reward you with loyalty and referrals. Such people become your Customer Ambassadors.
In today’s day and age of the social media, your interaction with customers often become virtual ones! The
social media becomes more important. How do you work with or follow or use social Customer Ambassadors
and network with them, and get them to refer other customers to you?
Customers with "Social Value": Your Customer Ambassadors
Most companies measure Customers Life time Value. The equation includes the Customer’s current buying,
the expected rate of growth of his buying over the years, and the business obtained from the referrals he
provides. Very often these referrals are more important than his own purchases. You need these customers
as your Customer Ambassadors, and their value as Customer Ambassadors can be immense.
How do Customers become your Customer Ambassadors? The necessary condition is that you create great
value for them over what your competition can. As value increases, (and value is what it is worth to the
Customer to do business with you and includes your products, the relationship, the image and brand, your
people and service, and the price and non price terms). A good Customer Ambassador recommends you to his
network. A great Brand Ambassador also has a virtual social network where he can and does refer you.
This last kind of a Brand Ambassador has to be nurtured because his referral value can be huge. As an
example if he buys 100rs a month, but refers 10 customers who buy an average of 60 Rs, he has referred
600rs to you.
Today, the bulk of referrals are face to face, followed by telephones, and social media is a distinct third but
growing. That is why you have to follow your customer Ambassador there onto the net. The next article
discusses this.
You need a data capture mechanism that captures referrals and Customers referring customers, You can then
start a special campaign for them. (you could also identify them from surveys as those who would definitely
recommend, and by asking how many people have you recommend or can you suggest people we can
contact. This can be added to your data base.
Ask what made these people my Customer Ambassadors. How can I convert others to become Customer
Ambassadors? There are many methods you might have used in the past such as asking for forwarding of
marketing emails, rewards for referrals, or events where such Ambassadors can bring friends. Do something
special for your Ambassadors
Recognise that your best customers are introducing you to their friends and making you part of their social
circle. Give them your highest priority and rewards and treat them as special.

2. Creating Value for your Customer’s Network and Gaining from it
How do you create value from a Customer’s Network? We all know that if you have a great Customer Network,
it can lead to referral buying. How do you get to referral buying? A Customer Network is your captive one
which you normally manage through databases and CRM and your website. The bigger data base and network
is your Customer’s Network (the network outside of your day to day control)
First, you can see the advantages of a customer’s Network. If you use it intelligently, you can get the customer
to come to you directly, circumventing the normal means he would have used such as looking for the product
on the net or going to a store to figure out whether s/he should buy from you or buy your products and
services. Instead of this, they might use recommendations from friends, from social media like Facebook or
Twitter. They look at what their influencers and friends have to say. They bypass some early buying steps. It is
convenient for them and much easier for you to sell to them because they come with some positive pre-
determined ideas
How do you get to this point? First you have to create value for your existing customers. You have to create
substantially more value than your competition. Customers then reward you with loyalty and referrals. Creating
Value means it is much more worth your customers while to do business with you over competing offers. Your
product, services, people and marketing have to better than competitions.
You also have to participate in the Customers Network. What is the social space your customers use? How do
they surf the net looking for merchandise through their customer network. How do you become a real (though
background ) part of this network? Can you become the customers aide in this interaction with his social
space. How do you understand this interaction and how do you derive the data about this interaction or how do
you monitor the customers network without invading his privacy? How can you influence him during this phase.
Today, you first step is to be part of this social space, become one with them in this space, and become a
trusted ally and part of the referral chain. Then price becomes less of an issue in the value equation. You must
start to understand what value your customers need in this space and for a customer why he should (and
make it easy for him) to refer you. And how can you add value (make it easier) for a customer looking for a
referral. What do you have to slend to eventually create value from your Customers Network.
Contact Customer Value Foundation to influence your customers than ever before.
For Free CVF Membership Click Here
Gautam Mahajan
President
Customer Value Foundation
K-185, Sarai Jullena
New Delhi 110025
Mob: +91 9810060368
Tel: +91 11 26831226
email: mahajan.g@customervaluefoundation.com
website: http://customervaluefoundation.com