Why is Recommendation Marketing so important? – WAU
Recommendation Marketing can be defined as the strategy that starts with a customer referring your company to other people. That is, it is when you are able to turn customers into promoters of your brand. Understand how to do Recommendation Marketing and know some examples of companies that apply the strategy with mastery!
If you already read our blog, surely you already know what is and what is the importance of Marketing.
It is he who allows companies to stand out from each other in the face of so much competition through value, in addition to generating numerous other advantages, both internal and external.
Relationship with customers, knowledge of the public and its public, knowledge of the market, educating, meeting needs, generating authority, informing … all of this can be the result of good Marketing.
What will define which of these benefits you will have is the strategy you chose to apply to your company. And yes, there are several!
Among them, one deserves to be highlighted for its benefits and also for the process with which it generates these benefits: Recommendation Marketing.
Definition: Recommendation Marketing
In a simple way, Recommendation Marketing is the Marketing strategy that begins through the experience of an existing customer until their referral to someone else.
That is, it is when your customers become your company’s promoters.
Imagine the following scenario: a customer made a purchase for a product or service with your company, and was immensely satisfied. Service, delivery, cost … all this generated a great experience for him.
With that, he starts talking about his company to other people – friends, family, on social networks, etc. – and these people are really attracted by the comments of his client.
Therefore, they end up looking for you and become customers.
This process happened recommendation of the satisfied customer. But do you agree that he not only spoke well of you, but did a “marketing” about you?
He propagated to others the value that his company provided him. And that is exactly what Marketing does.
Why Recommendation Marketing is a good strategy
This is a simple answer: people place much more value on what other people say about a brand than what a brand says about itself.
And this is obvious. Especially with the ease of having access to the opinion of countless people.
Think of yourself as a consumer. What counts more? A friend’s opinion about the good experience he had with a brand or an advertisement that that brand does about itself? Probably the second option.
The appointment of someone, in addition to credibility, gives people a lot more security, as they are receiving referrals from those who have had a real experience with that company and for this reason can give an opinion with property.
According to one SPC São Paulo research, 90% of people search the internet before making a purchase.
And this research doesn’t just happen on company websites, but on complaint portals like Complain here, and incredible 36% of searches are made in social networks.
This proves something that we all imagine: people’s opinions influence (and a lot!) Our consumption choices.
That is why Recommendation Marketing is a great strategy.
In theory (we will talk about this later), it does not represent costs that the company no longer has and still has a capacity to influence people more effectively than most strategies.
Obviously it is not possible to use Recommendation Marketing exclusively, because people have to know you to consume and, from there, become promoters of your company.
In addition, when a person hears the opinion and wants to research about you, they have to find information to support that opinion.
However, in this way, linked to other strategies, it can be a great way to increase sales, establish a relationship of trust and credibility with your audience, retain customers and increase the reach of your brand through good word of mouth.
These customers, more than spreading their brand, became true evangelists and defenders.
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What it takes to apply Recommendation Marketing
For someone to recommend something to someone else, the first thing they need to have is a good experience. And that is your responsibility.
Thus, the entire purchasing process of your potential customers, from the first contact with your company to delivery, should be a good experience.
The website must be accessible, quick responses, information available, delivery on time, or in the case of physical stores, good service at the time of purchase, problem solving (a good experience is not made by the absence of problems, but by their solution in shortest possible time)… all of these processes must meet or exceed the needs of your customers.
But just providing a good experience and waiting for people to talk about you is not the best return option for Recommendation Marketing.
Of course, it’s a great process, but you can also encourage people to recommend you.
It is possible to “induce” people’s recommendation
It is possible to lead people to promote your brand based on some attitudes. And that is exactly what makes your Recommendation Marketing a considerable return strategy, which significantly impacts your sales.
And there are countless ways to encourage your customers to refer your company to friends.
For example, providing benefits for the indicator, such as discounts, benefits or gifts.
Or even offering benefits also for the one who received the referral, as a free period enjoying your service, discounts, free sample, etc.
Some companies attribute Recommendation Marketing to the strategy of using influencers, which are those people with notoriety for a niche of people and who end up influencing their lifestyle and consequently their buying actions, such as bloggers, celebrities, youtubers, etc.
Gabriela Pugliesi, a good example of influencing the Fitness world
For this, they send to these influencers products for free.
And, if these people like this product, they talk about the experience and give their opinion on their communication channels with the public: blogs, Snapchat or Instagram, for example.
In that case, it’s important to just keep in mind if your persona fits as a consumer of the content of this influencer, and who exactly are the people whose audience is an audience.
Of course, many people are suspicious when a media person talks about a product, but in general, influencers generate much more positively return in relation to the public.
Good Examples of Recommendation Marketing
O Dropbox, a cloud file storage service, since the beginning of its brand propagation strategy, uses an excellent Recommendation Marketing strategy
For each service user that indicates a friend, he gains more storage space.
In other words: they offer users something low cost, but with great added value, making the experience of those who already used the platform excellent.
And still making yourself known through the influence of referrals from friends to people who, at that time, didn’t even have much knowledge about cloud storage.
The result was: an absurd growth in the number of users in a few months. That gave so much result that is still practiced by the company, which has a page exclusively for people to understand how to get benefits through referral.
Another company that uses Recommendation Marketing very well is the Uber. When you are a user of the services, you can win free travel through indication.
It works as follows: through the app you refer a friend, who receives a code that makes your first trip free. That is, the nominee also wins.
When he requests that first trip, you are also rewarded with a free trip!
Obviously the code cannot be displayed.
That way, the more people who are not users you refer, the more free trips you take and the more the platform is propagated, an advantage for Uber!
This strategy is so important for them that on the company’s website there is also a page exclusively to explain this referral process to customers, and even allow users to share their promotional code on their social networks to increase the reach and consequently the strength of the strategy.
Recommendations Marketing can add a lot to your strategy, especially if planned correctly, without bringing losses to you, and bringing real benefits to your audience.
But always keep in mind that his success will depend a lot on a good experience of your buyer or influencer.
Therefore, your entire sales, service, support and marketing process must be working very well and providing this good experience.
In addition to propagators, you will also result in your company’s defenders, loyalty and building a trusting relationship with the public.
In addition, to propagate your Recommendation Marketing action, you will need to know your audience very well, so that it is reached and also converted to your initiative.
And a great channel for this propagation, certainly are social networks, as they facilitate the sharing of a message in an easy and effective way.
So now is a good time to read our post: What they are and how to create personalized audiences on Facebook.