In a crowded market, businesses in Indonesia are facing challenges in customer acquisition and retention. According to Statista, the growth of digital advertising, with IDR34 trillion in ad spend in 2022, has made it even more competitive, and customer acquisition cost is rising.
In Indonesian e-commerce and digital service, the churn rate is high, especially due to the frequent discount wars and promotions. Statista’s report says 50 percent of online shoppers in Indonesia are motivated by discounts and promotions which can lead to price sensitive behavior and low customer loyalty.
And loyalty programs are often found to be an ineffective approach. Despite many loyalty programs, many Indonesian businesses struggle with customer retention. Jakpat’s report says only 30 percent of consumers in Indonesia are loyal to brands based on these loyalty programs, which means offering rewards is not enough to build long term loyalty.
Given these challenges, one of the public relations tools, namely brand advocates, can help businesses in Indonesia overcome customer acquisition and retention challenges in a crowded market. Their authenticity, loyalty and influence can solve many of the problems of rising cost, customer churn and price sensitivity.
What are Brand Advocates?
According to Rob Fuggetta, founder of Zuberance and author of “Brand Advocates: Turning Enthusiastic Customers into a Powerful Marketing Force”, brand advocates are passionate customers who recommend products or services without being incentivized. He says advocates are different from influencers because their motivations are intrinsic and rooted in their genuine satisfaction.
Jay Baer, President of Convince and Convert: Brand advocates are often loyal customers who are willing to “defend” the brand, amplify its message and act as unofficial ambassadors. Unlike paid endorsements, brand advocacy is rooted in authenticity which is key in an age where consumers are looking for genuine recommendations.
The power of content marketing to turn brand advocates
The power of content marketing to turn brand advocates is huge because it allows brands to build relationships with their audience and create a foundation for long term loyalty and advocacy. In addition, brand advocates can enhance a company’s reputation by providing authentic, third-party endorsements. Public relations teams often use their positive stories to support the brand initiatives.
Here are several examples from brands that motivate customers to promote the brand.
HubSpot offers educational content that solves problems. This platform provides free marketing, sales and customer service courses, along with in-depth blog posts and guides that help users improve their skills and solve business challenges. Users who benefit from the content are more likely to advocate for the brand, associate it with success and expertise. As a result, HubSpot has built a community of loyal users who frequently recommend its products and content to others.
GoPro used User Generated Content (UGC) strategy in their “Photo of the Day” campaign, asking users to submit videos and photos taken with their cameras which were then featured on the brand’s social media channels and website. This approach made users feel recognized and valued, and created a sense of community and belonging. This involvement turned users into passionate advocates who shared their content and promoted the brand to others. As a result, GoPro’s content marketing strategy not only strengthened brand loyalty but also turned customers into active brand promoters through organic sharing and engagement.
Try this if you want to have similar success stories like HubSpot or GoPro
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Create Valuable and Shareable Content
To turn customers into brand advocates, brands need to create content that adds value. Whether it’s educational (tutorial articles/videos), entertaining (a day in my life vlog) or inspiring (motivational stories), content must resonate with the audience. The more helpful and relevant the content is, the more customers will share it and advocate for the brand.
For example, Indomie ran a “Creativity Contest” where they asked consumers to create and share unique recipes or artistic ways of preparing Indomie. This was a UGC campaign, it not only engaged customers but also created buzz around the brand and its versatility, turning participants into brand advocates by sharing their creativity.
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Build Community and Connection
Creating platforms or spaces where customers can interact, share experiences and discuss topics related to the brand helps to build a sense of community. This could be in the form of forums, social media groups or brand-hosted events. When customers feel part of a community, they are more likely to develop strong ties to the brand and become advocates.
Hosting online or offline events like meetups, webinars or workshops can strengthen the brand-customer relationship. Regular interactions can deepen emotional connections and create a loyal customer base that will promote the brand.
We can always learn from Xiaomi. The brand has built a community called “Mi Fans” and regularly hosts events and meetups for its fans. During these meetups, members are not only able to interact with each other and with the brand directly but also share common interests like device teardowns. This has turned into a group of dedicated advocates who love to promote Xiaomi products.
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Create a Customer Loyalty Program
Loyalty programs are designed to reward customers for their continued engagement and purchases. By offering points, rewards or exclusive offers, brands encourage customers to stay loyal. As customers accumulate rewards, their emotional attachment to the brand grows and they are more likely to advocate for the brand.
Kopi Kenangan’s loyalty program offers rewards for frequent purchases, personalized offers and access to exclusive promotions. Customers’ spending will be calculated from every purchase which can be redeemed for cashbacks. This program has turned into a strong base of loyal Kopi Kenangan customers who not only stay engaged but also promote the brand by sharing their rewards and experiences.
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Leverage Influencers to Add Referral-Based Rewards to Their Content
Referral programs encourage customers to recommend a brand to others by offering them incentives. Word-of-mouth marketing is very powerful because people trust recommendations from friends and family. Offering referral-based rewards can motivate customers to share the brand with their network and increase advocacy.
Tiket.com uses referral programs where customers can share their unique codes with others. When someone signs up using the referral code, both the referrer and the new customer get rewards such as discounted rides or credits. This has helped the brand grow their user base while encouraging existing customers to advocate for the brand.
The brand can leverage influencers to amplify the impact of referral programs by promoting them to their massive followings. Influencers’ recommendations carry weight with their audience, so when they tell their followers to use referral codes or sign up for rewards, it can drive advocacy and conversions.
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Create Stories About Personalized Customer Experience
Personalization makes customers feel seen and heard, which deepens their connection to the brand. Offering tailored recommendations, personalized offers or customized service increases customer satisfaction and advocacy. When customers have a good personalized experience, they will share it with others.
Apple’s in-store experience is an interesting case that other brands can learn from. Apple is famous for its personalized in-store experience through its customer service and product consultation. Whether helping customers choose the right product or setting up devices, Apple makes sure it is a seamless and tailored experience. This attention to individual needs creates happy customers who will advocate for the brand.
Sharing stories about how a brand has helped individual customers can humanize the brand and drive advocacy. In public relations, media coverage is essential, and brand advocates can sometimes be featured in earned media (news stories, interviews, etc.), adding a human element that strengthens the brand’s message. This showcases the value the brand brings to its customers and encourages others to experience it for themselves.
Conclusion
In summary, building brand advocates is a winning strategy for businesses in Indonesia to overcome customer acquisition and retention challenges in a crowded market. As digital ad costs rise and customer loyalty is elusive, leveraging real relationships through public relations, content marketing, community building, personalized experience and referral programs can drive long term loyalty.
Success stories from the brands above prove that these approaches can turn customers into passionate advocates. By creating value, building connections, rewarding loyalty and sharing personalized stories, businesses can have a loyal customer base that promotes their brand. And having a loyal base of brand advocates brings long term benefits that not only boost profitability but also the brand’s resilience and reputation in the market.