A timely delivery. A responsive customer service department. An innovative product. Great brands are built upon nuanced and valuable customer interactions, but today’s businesses rely on analyzing metrics to succeed. Have you noticed that audience growth, website engagement, and conversion rates seem to dominate modern marketing conversations? It’s no surprise. Companies are starting to acknowledge that much of their success relies on the preferences and behaviors of customers.
We know that customers are talking and charting a path of behaviors that can be monitored, tracked, and managed using an automated referral marketing program. We wondered if the organic interactions associated with word-of-mouth exchanges could be linked to specific customers and influencers to give brands the ROI they’ve been looking for. A recent survey conducted online by Harris Poll on behalf of Ambassador helped us back up our observations with insight about consumers and their referral practices. Here’s what we discovered:
Family and Friends Matter
– 82% of Americans say they seek recommendations from friends and family when considering a purchase.
– 67% say they’re at least a little more likely to purchase a product after a friend or family member shared it via social media or email.
Rewards Make A Big Difference
– 88% of Americans say they would like some sort of incentive (money, product or service, loyalty points, early access, swag) for sharing a product via social media or email. That number jumps to 95% among 18-to-34-year-olds.
– What’s the reward of choice? 77% of Americans say they prefer money.
– By contrast, only 18% want to be rewarded with swag.
More About Millennials
– Across a variety of industries, 92% of 18-to-34 year-olds say they seek recommendations from friends and family when considering a product purchase — 10% greater than the general population.
Money Talks
– 86% of Americans with a household income of more than $100,000 seek recommendations when considering a purchase.
What This Means
The results are in and our survey revealed that word-of-mouth still matters. Modern customers who want to be in the know tap into their closest networks for trusted recommendations. Millennials are even more proactive in their search for recommendations and people seek more referrals when there’s more money at stake. We’ve crunched the numbers for you, now it’s your turn to attract quality customers with a referral marketing program that caters to today’s referral practices.