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BCG's Brand Advocacy Index

The Boston Consulting Group's (BCG) Brand Advocacy Index (BAI) is a metric developed to help companies measure the degree of customer advocacy for their brands. BAI focuses on the likelihood of customers to recommend a brand to others, which is a powerful indicator of brand strength and customer loyalty.

Unlike other customer satisfaction or loyalty metrics, BAI emphasizes the importance of customer referrals and word-of-mouth marketing. BAI is calculated based on a survey where customers are asked about their willingness to recommend a brand to their friends, family, or colleagues. The responses are then used to compute a score, which ranges from -100 to 100.

A higher BAI score indicates that a brand has more advocates who are likely to recommend the brand to others, while a lower score suggests that the brand has fewer advocates or even a higher number of detractors. BCG's research has shown that companies with higher BAI scores tend to experience higher growth rates and better financial performance compared to their competitors with lower BAI scores.

The Brand Advocacy Index can provide valuable insights for companies to understand their customers' perception and loyalty better. By analyzing BAI scores, companies can identify areas for improvement, develop strategies to enhance customer experience, and ultimately, increase their brand advocacy and drive business growth.

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