Content Discovery Smackdown: Hootsuite vs. Buffer vs. KloutContent Marketing Minds: Ingredients of the Tastiest Content [Nutrition Label]From the Corn Field to the Digital Era: Content Marketing Starts with TrustContent Marketing: Is 2014 Really Shaping Up to Be the Year of Video?
Your Customers Aren’t Listening! How to Create Consumer Dialogue that Converts4 Tools for Nonprofit Social Listening and Reputation ManagementThe Promising Role of Social Listening in Treating Health IssuesThe Importance of Social Listening for Brands
- Public Relations
Facebook Testing a Way for Users to Buy Products on the Platform7 Website Tips to Attract More Shoppers to Your PagesHow eCommerce, Augmented and Virtual Reality Will Redefine the Retail ExperienceSearch Query Analysis to Increase eCommerce Website Conversions
- Content Marketing
Technology & Data
Social Startups: Bizible Connects All the Dots from Marketing Contributions to RevenueCreating the Perfect Profile for Your Social Media Marketing EffortUsing GPS and Localization for Social AnalyticsAnalytics and Prospect Intel: Discovering Your Ideal Prospect
- Big Data
- Tech & Innovation
3 Security Risks You’re Taking Every Day While Using Social MediaShould the President Have the Power to "Pull the Plug" on the Internet?How Safe is Your WordPress Website From Hackers and Other Malicious Attacks?
- Software & Tools
- Small Business
- Social Organization
Celebrating the Grand Re-Launch of Social Media Today! SBH Podcast Episode 8Why Should You Care If Your Employees Are Thought Leaders?Beyond Engagement: The Art of Managing Social-Media Risk in Employee Advocacy
Why All-in-One Social Media Management Systems Don't Cut It for Social Customer ServiceWhat You Should Know About Customer, Digital, and Contextual ExperienceSurging into Q3: How to Make It Better Than Q2Is How You Serve Your Customers Costing You Business?
Join us September 15th in Atlanta for The Employee Advocacy Summit and learn how to unleash the power of your employees.
Post your event here and we'll share it with our community. If one of our members is featured, we'll promote as well on their profile.
- Marketplace & Webinars
The SMT Marketplace
Your resource for exclusive content and insights from Social Media Today, and opportunities to reach our community of professionals.
The Social Business Book Club brings you books, discussions, and insights from today's to business thought leaders.
Join interactive talks and and panel discussions with leading thinkers and practitioners on social media and networked business, or browse the catalogue of recorded sessions - all completely free.
Reach Social Media Today's community of marketing and communications professionals in an editor-approved context with a native advertising package.
The Importance of Brand Recommendations in Your Marketing Strategy
Posted on September 3rd 2013
Knowing why and how consumers use recommendations will help you create more effective marketing programs.
According to research conducted by Nielsen, we know that 92% of consumers report that “word-of-mouth and recommendations from people [they] know” are the leading influence on their purchase behavior. Only 37% trust search engine ads, and just 24% trust online banner ads. They trust their friends and family the most when looking for brand recommendations. But what types of recommendations carry the most weight?
Brands are eager to tap into the power of recommendations, and many companies measure an “NPS,” or Net Promoter Score, which illustrates how likely someone is to recommend a specific brand or company. According to a U.K. study by Fred Reichheld, “a 7% increase in word of-mouth advocacy unlocks 1% additional company growth.” His research also shows that “a 12% increase in brand advocacy, on average, generates a 2x increase in revenue growth rate plus boosts market share” and, conversely, “a 2% reduction in negative word-of-mouth boosts sales growth by 1%.”
What do consumers consider to be actual recommendations and whom do they trust?
A recent report by social media marketing agency Zócalo Group delves into how consumers view on- and offline recommendations from their friends, family, and peers. Their results show that 46% percent of their respondents were influenced by their Facebook friends liking pages — tied with positive brand reviews and just 1% behind YouTube video reviews.
The study found that:
- 92% of consumers view word-of-mouth and recommendations from friends and family as the most influential with regard to purchasing decisions.
- People define Facebook likes, positive brand reviews, and video reviews on YouTube as recommendations, along with someone offline who expresses their love for a brand and a friend or co-worker who uses a specific brand.
- The top 4 most trusted sources for recommendations are a close friend, a family member, a brand advocate, and a product expert.
- Peer-to-peer recommendations are 20 times more valuable than celebrity endorsements.
- 49% of people make recommendations because they want to help people.
What does this mean for brand marketers?
Recommendations are the gold standard for moving consumers down the purchase funnel. We all know that brand recommendations are happening on a daily basis, and this study shows more about where and why they’re happening.
All recommendation are not created equal, of course, and the source always matters — brand endorsements must come from your customers. Some channels are more effective than others, so it’s important to know where to reach your customers and inspire those recommendations.
This infographic from Zócalo Group illustrates the study’s findings: