https://www.rikon.ie

The power of referral

The power of referral

It is not a surprise that referral marketing, or word-of-mouth marketing, is one of the oldest and most effective marketing strategies out there. Hearing a friend or a relative recommend a product or a service to you is much more impressive than watching an ad on TV or Internet. 

There have been numerous studies that have demonstrated the power of the word-of-mouth. Here are the figures from the recent study conducted by Nielsen Company, who are leading market research group into the behaviour of consumers. 

90% of consumers around the world say they trust word-of-mouth from their friends and family above any other form of advertising. Th 70% of them trust other consumers’ opinion posted online. These numbers speak for themselves. 

But what makes word-of-mouth so powerful? Let’s take a look. 

  1. It comes from people who you trust

Your social circle is a group of people with similar interests, views and tastes. It makes sense that you can relate to your friends and family and are likely to appreciate the product or service that they liked.  

  1. It is always relevant

Unlike the traditional forms of advertising, which are broad in scope and often don’t reach the desired customer segment, word-of-mouth almost always does. Even when it doesn’t, the recommendation from other people (let alone friends and family) often leads to conversion of an unlikely buyer to a customer. 

  1. The reach of referral marketing can be very high

With today’s social media having an incredible level of engagement, referral marketing has the potential of being a highly influential tool at your disposal. A single customer review can lead to tens, hundreds, or even thousands of other users deciding between buying your product and the competitor’s. It is truly fascinating and remarkable how powerful word-of-mouth has become with the rise of digital media. 

With these factors in mind, it is time to put all this knowledge to practice. Developing your referral marketing strategy is a big undertaking but the rewards are great and the effects will be felt for many years.