DECA Performance Indicators Practice Exam 2025 - Free DECA Practice Questions and Study Guide

Question: 1 / 400

What is meant by customer advocacy?

Encouraging customers to find competitors

Promoting a company’s offerings based on positive experiences

Customer advocacy refers to the process of promoting a company's products or services based on positive experiences that customers have had. When customers have a favorable experience, they are more likely to share their stories with others, effectively becoming advocates for the brand. This word-of-mouth promotion is powerful, as potential customers often trust the opinions and recommendations of their peers over traditional advertising.

In this context, the primary goal is to build strong relationships with customers who are satisfied with their interactions and experiences with the company. Their endorsements and support can lead to increased brand loyalty, repeat business, and a more substantial customer base, ultimately benefiting the company’s reputation and revenue.

While the other options touch on important aspects of customer relations, they do not accurately capture the essence of customer advocacy. Encouraging customers to find competitors does not promote loyalty or positive experiences, offering discounts is a transactional approach rather than relationship-focused, and developing new products, while beneficial, is more about innovation than advocacy. Thus, promoting based on positive experiences encapsulates the true meaning of customer advocacy.

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Offering discounts to loyal customers

Developing new products for customers

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