The Retention & Loyalty Playbook – Part 4: Turning Your Happiest Customers into Your Best Growth Channel

I’m a bit of an outdoor enthusiast. I don’t have a ton of time to get out with all the various responsibilities I’ve got, but I enjoy being out in the weather. I like hiking in the rain and snow. I love skiing. My weekly form of exercise is on a bicycle as long as it’s dry.

Many of you, similar to my wife, are probably thinking, “Why would you want to be outside in the rain?” or something similar. With the right equipment, the whole experience changes. I’m not cold, wet, or miserable—I’m just out in nature, in what feels like a raw and vulnerable moment for both me and the forest or the mountains.

As a result, I have all kinds of outdoor gear to keep myself comfortable in various temperatures and weather conditions. Because of how it fits, how it performs, and how it outlasts everything else I own, I’ve wound up with a ton of gear from Arc’teryx.

Many of my friends know about Arc’teryx because of me. I’ve often got at least a jacket of theirs on, if not a sweater. My family bought into the brand. I’ve had conversations about it when hanging out at dinner parties. I don’t work for them, but I might as well be for all the awareness and business I drive for them.

I mean, have you seen their material quality and zipper garages?

This is what you want for your company.

The ACME Productivity Challenge: How to Create Evangelists

ACME Productivity has made significant strides. They’ve reduced churn. They’ve kept users engaged. But now, they’re looking to take things a step further. They don’t just want customers who stay—they want customers who bring others with them.

A handful of ACME’s users already act as natural advocates. They recommend the product to colleagues, post about it online, and push their companies to expand its use. But ACME realizes something crucial: they’ve never actually built a system to encourage or amplify this behavior.

It’s time to change that.

Identifying Your Most Engaged & Loyal Customers

Not every user will become an evangelist. Some customers won’t say anything no matter how much they love the product. Others, however, are actively sharing and engaging—they just need a little encouragement.

ACME Productivity starts by identifying key signals of an engaged advocate:

• Frequent product usage—users who log in daily and rely on key features.
• Internal champions—customers who push their teams to expand their use of ACME.
• Organic promoters—users who recommend ACME in professional networks or online forums.

Once they find these customers, ACME doesn’t just hope they keep talking about the product. They build a plan to empower them to do so even more.

Why People Advocate for Products

It’s not enough to assume that if customers love your product, they’ll talk about it. The reality is, most people need a reason to advocate. ACME looks at the psychology behind why customers become evangelists:

1. Reciprocity – If a brand has provided them with value, they want to return the favor.
2. Social Proof – People enjoy recommending products that make them look informed and ahead of the curve.
3. Community & Belonging – Customers want to be part of something bigger than just software.

Equipped with these insights, ACME knows they need to create a structured approach to advocacy.

Building a Customer Advocacy Flywheel

ACME develops programs to turn engaged users into brand champions:

• A Referral Program – Rewards for customers who introduce ACME to their network.
• Beta & Feedback Groups – An insider track for top users to help shape product development.
• User Spotlights & Case Studies – Showcasing success stories that encourage more engagement.
• Community & Peer Networking – A space for users to connect, share strategies, and reinforce ACME’s value.

By providing the right incentives and structure, ACME shifts from hoping for advocacy to actively encouraging and rewarding it.

Measuring Success: The Metrics That Matter

Advocacy efforts need clear goals and tracking. ACME begins measuring:

• Net Promoter Score (NPS) – Are customers likely to recommend ACME?
• Referral Conversion Rate – How many referrals turn into paying customers?
• Expansion Revenue – Are existing accounts growing through advocacy?
• Community Engagement – How many customers participate in peer groups and discussions?

By focusing on these indicators, ACME ensures advocacy isn’t just a feel-good effort—it’s a measurable growth strategy.

The Takeaway: Advocacy is Retention & Growth Combined

Customer advocacy isn’t just about referrals—it strengthens retention, loyalty, and brand credibility. The companies that win in the long run don’t just keep customers; they turn them into their biggest growth channel.

ACME has built a retention engine. Now, they’re building something even more powerful—a network of passionate users who spread the product for them.

But there’s one final piece to this puzzle: making the product so good, it sells itself. That’s where we go next.

Coming Up Next: Creating a Product Experience So Good, It Sells Itself

ACME is on the right track, but there’s one more step—ensuring that every interaction with their product turns users into lifelong fans.

Next week, we’ll explore:

• How to remove friction and make adoption seamless.
• The psychology of effortless product engagement.
• How ACME builds a product experience that converts users into evangelists without requiring a referral program at all.

PS: Let’s Build Your Customer Growth Engine

Scaling an AI Productivity SaaS isn’t just about signing new users—it’s about turning existing customers into your best marketers. Advocacy, retention, and expansion are the real levers for sustainable growth.

📥 Download the Guide: The Profitable Growth Guide for AI Productivity SaaS Founders—your 3-step framework to scale profits, stand out strategically, and create long-term customer loyalty.

📅 Book a Consult: Want to unlock the power of customer advocacy? Let’s build a plan to maximize referrals, expansion, and retention.

The future of your SaaS business isn’t just about who you acquire—it’s about who stays and who brings others with them. Let’s make it happen. 🚀