The Power of Referral Marketing

[djbaxter]

I found this article interesting, not because the overall ranking was a huge surprise to me but (a) because of how strong the word-of-mouth factor was, and (b) because of the strength of the second ranking factor - online posted consumer opinions (one of the ranking factors for local search).

The true power of referral marketing and how you can use it today to grow your small business fast
Duct Tape Marketing
February 21st, 2017

Basically, the graph shows that 90% of consumers around the world say they trust word-of-mouth from their friends and family above all other forms of advertising. Also, 70% of them trust other consumers’ opinion posted online. These numbers alone are gold and speak volumes about the power of this (sometimes disregarded) marketing channel.

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I think this is one of the reasons Facebook Marketing has become such an essential and effective part of promoting many small businesses. It's basically an online structured way of combining referral marketing and online reviews, with the word being spread by people who know and trust one another in a fast ripple effect.

 

[azgold]

I believe that word-of-mouth advertising always has been and always will be the best form of promotion. For that to happen, you have to offer a terrific product or service and give good customer attention. Takes time to build up a brand and reputation but totally worth it, in my opinion.

Just looking at the graph you posted, DJ, I see editorial content is in the number four position. I'm wondering if that has or will change with the advent of native advertising and "fake news". Sadly, that could become less trustworthy in the eyes/minds of the consumers.

I think this is one of the reasons Facebook Marketing has become such an essential and effective part of promoting many small businesses. It's basically an online structured way of combining referral marketing and online reviews, with the word being spread by people who know and trust one another in a fast ripple effect.

I think you're right. People trust viral content. They think that if a ton of other people like it, it must be good.

 

[Alan Potts]

Great article Dear.
Thanks for sharing a great piece of information.

 

[Julia Sta Romana]

I think this is why Facebook introduced a crowdsourcing feature. So people can recommendations from their friends who have actually used the product and service. A form of word-of-mouth advertising on social media.

 

[jaydenwilliam]

Well, It's a nice topic to discuss. Referral marketing is the best way to promote your business just asking your friends and existing clients to tell about your business to others. And only this word-of-mouth will bring more customers to you. The rest work will be to you to convert that customer into your conversions.

 

[HelpGrowUSA]

So glad that this information is being shared. This topic is becoming more and more relevant and important.

 

[Gin]

another idea I seen online too was offering 'Referral rewards' that has potential of boosting promotion but will depend on worth of the reward to a consumer.

 

[pedrocampos]

Today is so important to build trust with the customers. Referral is not different, people take actions based on trustworthy facts or people they trust.