There is a growing amount of data that indicates why word-of-mouth marketing is so appealing.
US trade body Womma (Word of Mouth Marketing Association) has conducted research showing that 72 per cent of consumer credit reviews from family or friends have either a great deal or a ‘fair amount’ of influence when deciding whether to use a product or service, while 81 per cent of consumers are influenced by their friends’ social media posts.
According to Nielsen’s Global Trust in Advertising and Brand Messages report, published in September 2013, ‘recommendations from people I know’ are the most trusted form of brand advertising, with a score of 84 per cent.
And as digital communications have penetrated our world, this figure has grown, having been just 78 per cent in 2007.
It is also far more popular than the alternatives. The same report scores branded websites at 69 per cent, TV adverts at 62 per cent and emails – even those that consumers have consented to receive – at 56 per cent.
How Can Your Business Use This To It’s Advantage?
Word of mouth advertising has been around for a long time. We all love to be recommended to companies and products. When we are, as we have seen above, it makes a big difference to our purchases.
But how can we use this in our businesses to full effect? Personally I think that social media has given every business, no matter how big or small, a great opportunity to engage with their customers and prospects. Now we can use positive feedback and reviews as well as other social evidence to full effect online.
Not only that but as we have seen with the example of Plusnet we can use incentives to get our existing customers to bring in their friends. And customers that are recommended by a friend to Plusnet have a 50% lower churn rate.
Is It Time You Leveraged This Powerful Technique?
At CR4L Results Marketing we are implementing schemes like the Plusnet one for our clients. The numbers speak for themselves and we suggest you try a similar plan; especially if you sell to the public.