Buyapowa's Expert Insight on Referral Marketing | Blog
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Word of mouth is one of the most powerful tools brands can use to acquire new customers. According to Nielsen, 92% of consumers around the world said they trust word-of-mouth, or recommendations from friends and family, above all other forms of advertising.
Since the dawn of time, word-of-mouth between friends and family has been the most trusted source of information about new products and services; in fact ever since one person first recommended to his or her friend which rock was best to smash another rock with or which berries will and won’t make you sick.
It probably comes as no surprise that we at Buyapowa have always believed that word-of-mouth is the absolute gold standard of great marketing. After all, it’s consistently outperforming other marketing strategies and a reported 92% of consumers value recommendations from friends and family above all other forms of marketing. In fact, more recently, word-of-mouth helped travel titan Airbnb develop a strategy that enables them to get the vast majority of their web traffic (and business) without paying huge tech advertisers like Google and Facebook.
Before the days of social media – before viral videos and sponsored ads – was the natural social interaction between consumers: the recommendation of a product or service from one person to the next.
Word of mouth marketing (WOMM) is the organic communication of information from one person to another about a brand, product or service. It is most often influenced and driven by a positive interaction that an individual has had with a brand. WOMM is nothing new, and has been reviewed and discussed in a number of articles. More recently, there has been strong evidence for WOMM to succeed in the credit union space. With customer satisfaction levels at an all-time high for credit unions, and with 64% of marketing executives believing word of mouth is the most effective form of marketing, customer referral programs just make sense.
