The modern consumer faces a dizzying number of choices each day, all with their own unique characteristics and long lists of attributes and drawbacks. How do you, as a company, position your product offerings in a way that makes a consumer choose your merchandise over a competitor’s? In other words, how do you differentiate yourself from all of the other brands out there? While there are numerous avenues to pursue and spend your marketing budget on, one of the best and most effective ways to find new buyers is by focusing on those you already have.
Traditional Advertising Methods Are Viewed With Suspicion
People moving about their daily lives in the modern era are bombarded with both conventional advertising techniques – such as newspaper ads and TV commercials – and newer types – such as digital marketing vehicles (e.g. sponsored links on websites). However, even though they are constantly exposed to these messages, the effectiveness of the advertising is under suspicion. More and more, the messages do not hit their target. This is particularly true for the coveted demographic of 18-29 year olds, who are notoriously skeptical of marketing vehicles in general and very conscious of the prevalence of fake reviews. If your company is struggling to reach its intended consumers via traditional means, marketing to existing customers in order to generate referrals is a clear solution.
According to statistics, referrals are four times more valuable to a company than a web lead, ten times more beneficial than a lead from a trade show, and 36 times more profitable than a cold call. They also generate a conversion rate that’s three to four times higher than any other channel. The advances in technology have increased social connectivity, making it easier than ever before for your customers to do marketing work for you. Consider the fact that a post written by a Facebook fan in just a few minutes will be immediately viewed by hundreds of connections (who likely trust his or her opinion), and through these links it can quickly be sent to thousands more. If you work to develop your online brand, generating Facebook likes and Twitter re-tweets, you can encourage this activity. Best of all, it’s relatively cheap – word of mouth marketing (WOMM) has been shown to be the most cost-effective method of producing a loyal customer base, growing a business, and connecting with new consumers.
It Has Proven Reliability
The research and statistics are clear in their endorsement of this marketing practice:
- Customers are 77% more inclined to purchase a new item when they hear about it from their social network, whether friends or family.
- Word of mouth (WOM) is the most important component stated in 20-50% of all buying choices.
- Ninety-two percent of consumers worldwide state they place trust in earned media, e.g. WOM or friends and family recommendations, over any other advertising channels.
Looking at these facts and figures, the conclusion is clear – if you’re not focusing on selling to your current patrons in order to generate new buyers, you’re missing out on a valuable tool.
Make Your Case
If you want to build your brand referrals, it’s crucial to give your brand loyalists reasons to talk about your company. Whether the inciting topic is great customer service, an unbelievable story, an amazing new product, or something else, this is the key to generating buzz and building growth.
Give us a call today at LaPorte Consulting or fill in the form below and find out more about growing your business by tapping into your current client base. Our proven track record can help you with whatever marketing goals you have in mind.