Influencers, advocacy & reference sales

In the world of commerce, the drive for reference sales is critical. Reference sales are sales that can be linked to a marketing event (such as a price promo) or branding techniques such as influencer marketing and consumer advocacy.

I have recently been trying to untangle a proposition to rejuvenate a brand and lead it into a renewed, more profitable direction. That has led me to reference sales. Due to an inelastic costing structure, price promos will not work.

Brands are increasingly turning to influencer marketing and consumer advocacy. Both approaches shape purchasing decisions through recommendations, but their nature, effectiveness, and sustainability diverge.

Influencer marketing has surged in popularity over the past decade, fuelled by social media’s rise and the cult of personality. Influencers with curated online personas and large followings are often used by brands to promote products or services in exchange for payment. Their appeal lies in their ability to reach hundreds of thousands, even millions, of potential buyers in a single post. This model is effective for creating immediate visibility and short-term sales spikes, particularly when targeting trend-driven markets. When an influencer aligns closely with a product's target audience and maintains credibility, their endorsement can function as a powerful reference point.

However, the effectiveness of influencers in driving authentic reference sales based on trust and personal experience is increasingly under scrutiny. Audiences have grown more aware of sponsored content, and authenticity is often questioned, especially when influencers promote multiple products across varied categories. As a result, the long-term value of these endorsements can wane, reducing trust and limiting repeat purchases or referrals.

Consumer advocacy is rooted in customer satisfaction and loyalty. Advocates are everyday users who promote a product or service because they believe in its value. This unpaid, organic promotion often carries more weight among peers. Word-of-mouth, peer recommendations, user reviews, and referral programs all fall under this umbrella. According to numerous studies, people are more likely to trust product recommendations from friends or family than from celebrities or influencers. It is this trust that makes consumer advocacy an especially powerful engine for sustained reference sales.

Unlike influencer marketing, consumer advocacy may not deliver rapid results or broad early exposure. It takes time to cultivate a customer base that is not only satisfied but motivated to share their experiences. However, once established, advocacy creates a network of trust-based promotion that can generate high conversion rates, increased customer lifetime value, and stronger brand loyalty. These advocates often become informal brand ambassadors without the need for compensation.

Influencer marketing and consumer advocacy both play roles in the reference sales ecosystem, but their strengths lie in different areas. Influencers are best used for awareness and early-stage engagement, particularly for new products or time-sensitive campaigns. Consumer advocacy is the foundation for long-term brand trust and sustainable reference sales. The most effective strategy often involves blending both: using influencers to spark interest and leveraging customer advocates to build depth and loyalty.

In an age where consumers are more informed and skeptical than ever, brands that invest in advocacy from within their customer base stand to gain not just visibility, but credibility, and with that, meaningful and sustained growth through reference sales.