Product / Market Fit, Product Development
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.
The Benefits
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.
Conclusion
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.
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About the author
Eric Dickmann is the Founder / CMO of The Five Echelon Group, host of the weekly podcast "The Virtual CMO" and YouTube series "Work-Life" and a fractional CMO for a variety of small and midsize companies. An executive leader with over 30 years of experience in marketing, product development, and digital transformation, he has worked with large, global companies and small startups to develop and execute marketing strategies to bring innovative products to the market.
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