And yet … the type of thing most likely to convince someone to try a new product – or to change a brand – is a reference or endorsement from someone they know and trust.
Omnichannel marketing promotions firm YA conducted research in 2016 with ~1,000 American adults (age 18+) that quantifies what many have long suspected: ~85% of respondents reported that they are more likely to purchase a product or service if it is recommended by someone they know.
A similarly high percentage — 76% — reported that an endorsement from such a person would cause them to choose one brand over another.
Most important of all, ~38% of respondents reported that when researching product or services, a referral from a friend is the source of information they trust the most. No other source comes close.
This means that online reviews, news reports and advertising – all of which have some impact – aren’t nearly as important as the opinions of friends, colleagues or family members.
… Even if those friends aren’t experts in the topic!
It boils down to this: The level of trust between people has a greater bearing on purchase decisions because consumers value the opinion of people they know.
Likewise, the survey respondents exhibited a willingness to make referrals of products and services, with more than 90% reporting that they give referrals when they like a product. But a far lower percentage — ~22% — have actually participated in formal refer-a-friend programs.
This seems like it could be an opportunity for brands to create dedicated referral programs, wherein those who participate are rewarded for their involvement.
The key here is harnessing the referrers as “troops” in the campaign, so as to attract a larger share of referral business and where the opportunities are strongest — and tracking the results carefully, of course.