November 27, 2012
One of the most prominent conclusions is who customers trust for recommendations. Surprisingly, at the bottom of the list are celebrities that endorse products with 30% of people mistrusting them. This is a big change because even ten years ago, having a personality associated with your product brought in far more leads than just traditional advertising. A less shocking but still surprising result is the opinions of family carry almost twice as much influence as friends. Following behind friends and family are the news and media, and advertising is only half as trustworthy as the news.
Likewise, business contacts were fascinating as well. It turns out people don’t put much stock in the opinions of their colleagues. They don’t particularly trust or mistrust them. People pretty much ignore these opinions and suggestions.
So what does this mean for businesses?
You are better off engaging a public relations firm to get your product and company in the news than to pay a celebrity personality to promote your product.
In terms of urging others to buy a great deal online, parents are more likely to encourage others to buy the product. Likewise, the younger a customer, the more likely they are to encourage a friend to buy the product as well. It turns out 25% of people will buy a product because they see or know other people buying it. Those under 35 are much more likely to be motivated by a limited time offer such as a flash sale.
The last conclusion is if someone sends a link or review about your product, the recipient believes the sender is trying to help them.
The translation for a upstart is to design a referral or ‘word of mouth ‘program to target the younger crowd and parents that pass on recommendations and encourage others to buy.
Filed under: Marketing & Sales