Measuring Employee Advocacy: The Proof is in the ROI

  • Alen BubichJanuary 4 2018
Employee advocacy benefits both your customers - and your employees.


It is no question that employee advocacy plays a mammoth role in the overall success of a business. Highly engaged employees are not only a key contributor to brand outreach but are instrumental to the running of a smooth internal business environment.

Increased social presence, loyal customers, brand recognition, and higher revenues, are some of the key benefits of investing in an employee advocacy program.

But how effective is your employee advocacy program?

Aligning your advocacy measures with key performance indicators is essential to understanding the overall impact on your business as well as the return on investment.

“On average, an employee advocacy program involving 1,000 active participants can generate $1,900,000 in advertising value, based on an Employee Advocacy Study.” – Kredible Research

Here are four key indicators of the impact of employee advocacy:

The Proof is in the Numbers

The impact of advocacy can be assessed quantitatively using the following metrics:

Website Traffic

The quantity and quality of your website traffic is a great indicator of how engaged your audience is with your content. Google Analytics is a prime tool to use for this purpose. You should pay particular attention to bounce rates as they’re a reflection of how “sticky” your website is. Ideally, you want a bounce rate below 40%. A lower bounce rate equates to higher engagement and consequently, higher lead generation.

Customer Acquisition Costs (CAC)

Not many businesses know the cost associated in convincing a customer to purchase a product or a service. This is a detrimental oversight as the customer acquisition cost is one the best indicators that a marketing funnel is operating at its optimum. The CAC metric can also be used to optimize the return on your employee advocacy investment.

Profit margins

ROI of an employee advocacy program can be manifested in many ways. There will be lower operational costs due the use of technology rather than conventional employee training methods. The business referral leads and conversion rates will increase by virtue of higher engagement. All these translate to greater direct sales values and profit margins.

Still Need Convincing?

  1. The Corporate Leadership Council shows that companies with highly engaged employees profit 3x faster than their competitors.
  2. Similarly, a report by SalesForLife gives a detailed account of their substantial return on investment versus the cost of their employee advocacy program.
  3. This report by the Maria Paviour Company relates a case study by Mark’s Spencer where stores with higher employee engagement delivered £62,000,000 more sales annually than stores with lower engagement.

Recommended Reading: Top 6 Employee Advocacy Misconceptions

Customer Loyalty & Retention

Is your message resonating with your customers? The loyalty of your customer base is not only a key indication of a highly
functional employee advocacy strategy but is the backbone of the long-term viability of the business.

The more involved your employees are in your marketing efforts, the greater chance the company has to capitalize on critical communication points. The way in which you set up the dialogue with your customer is integral to longstanding relationships and bigger returns.

Employee Performance 

While the numbers are critical to assessing impact, there is no better way to know if your marketing vehicle is working than to check its engine. Your employees are the crux of your employee advocacy program. Their success is your success. Their shortcomings are your shortcomings.

Businesses need to be aware of the link between employee engagement and performance. How have organizational behaviors changed since the
implementation of your program? Are employees more motivated? Do they take more initiatives? Are they seeking to move up the corporate hierarchy? These are all indicators of increased morale and productivity.

Recommended Reading: Employee Advocacy Can be Powerful

“Brand messages are re-shared 24x more frequently when distributed by your employees, versus your brand.” – MSLGroup

Brand Awareness

One of the most fruitful outcomes of an employee advocacy program is the increased outreach of your brand.

Employee engagement that is vibrant and effective will no doubt result in greater brand recognition. The implication of this is that people are more likely to work with and trust a brand that they know.

And the greatest thing about increased brand outreach?

The efforts of your employee advocates give rise to brand advocates at no extra cost. Brand advocates are sales reps for your business that you don’t even know about. They are the customers that have such confidence in your product/service that they speak about their love for it incessantly. An employee advocacy program that works will deliver the kind of customers that will champion your business with relentless drive.

Top performing organizations understand the they need to cultivate the best environment and propagate the elements that will best allow the stakeholders in their organization to thrive. Therein lies the opportunity for employee advocacy to make an astronomical impact. However, key metrics and performance indicators need to be put in place to measure the return on your employee advocacy investments.

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