Product recommendations are the number one driver of consumer purchase decisions. They are a powerful way to increase sales, customer satisfaction, loyalty, and lifetime value.
According to Nielsen, 92% of all consumers report that a word-of-mouth recommendation is the “leading reason they buy a product or service.” Likewise, a new study by Monetate found that product recommendations results in a 70% higher conversion rate.
So How Do Get Product Recommendations?
The marketing automation software provider Marketo suggests these five steps that you can take:
- Know. Understand what circumstances drive people to make these recommendations. Use social listening tools to monitor conversations about your brand and your competitors.
- Plan. Formalize your “shareable story” – how you want your brand talked about and recommended. Next, develop a plan to maximize the impact of your new shareable messaging. Your efforts online need to turn consumers into brand advocates.
- Identify. Discover the people whose recommendations influence purchase decisions. Seek to build a sustainable relationship with them. They can take your recommendation marketing to the next level.
- Activate. Create compelling experiences that engage customers in a relevant manner. The 90/10 Rule states that you spend 90% of your time engaging with people across your communication channels. Use the remaining 10% actively sharing your brand messages.
- Protect. It’s always important to protect your brand. Identify negative voices and misinformation. Monitor the traction of the message and understand the reach before engaging with the detractor. The Best Offense Is a Good Defense.
Indeed, product recommendation is a powerful way to increase sales, customer satisfaction, loyalty, and lifetime value. But becoming a highly recommended brand does not happen by accident. There is a roadmap you need to follow but the results can be impressive.
Top 10 Reasons for Startup Failure
There are many reasons for a single startup’s failure. The reasons are obvious and can be prevented. Being aware of those mistakes will help founders succeed by avoiding them