Have you ever purchased a product just because it was recommended by a friend or family member, or perhaps you saw a lot of positive reviews or a recommendation from a well-known influencer?
In this article, you will learn about the power of recommendation marketing and how it can contribute to the development of your business.
What is a recommendation marketing?
Recommendation marketing is a field of online marketing, also known as referral marketing. It aims to promote a product, service, or company through genuine recommendations from authentic customers. In other words, the goal of this strategy is to turn satisfied buyers into brand ambassadors who will promote the product and generate greater visibility and sales. Recommendation marketing is an essential strategy that influences our consumer life because it is known that we best purchase products recommended by our friends, family, or influencers.
How does recommendation marketing works?
Recommendation marketing has a relatively straightforward strategy because it involves encouraging customers to leave reviews about a company or a specific product. It works more effectively than advertisements or campaigns organized by the brand. This is because potential consumers are more likely to trust honest opinions from other customers.
Recommendations can be divided into two systems:
- Obtained recommendation – the service provider asks for a review;
- Spontaneous recommendation – the consumer, by their own decision, leaves a positive review.
Advantages of recommendation marketing
Like other marketing strategies, recommendation marketing has its pros and cons. However, it is worth focusing on the benefits to understand why it is so important. The advantages of this strategy include:
- Increased trust and credibility – recommendations from real users are perceived as more authentic and sincere;
- Lower customer acquisition costs – thanks to recommendations from buyers, the company can save on advertising campaigns;
- Increased loyalty – regular customers engage with the brand’s activities, creating a stronger bond;
- Feedback – having reviews allows us to know if our actions are heading in the right direction. It also enables us to correct mistakes and continuously improve;
- Competitive advantage – thanks to effective recommendations, we can gain a loyal customer base and strengthen our market position.
The visible advantages show that the benefits of recommendation marketing work both ways. The disadvantages of this strategy also show that it allows us to continuously improve and correct shortcomings.
Recommendation marketing VS. word-of-mouth marketing
Recommendation marketing is often confused with word-of-mouth marketing. However, most people are unaware that these are two separate strategies implemented in companies, both based on reviews but in completely different ways.
- Word-of-mouth marketing involves naturally generating discussions about a brand.
- Recommendation marketing involves customers spontaneously leaving their reviews. Thanks to them, we get reliable opinions from people who have knowledge about the product.
How to use recommendation marketing in you business?
To encourage customers to leave reviews, focus on several factors.
LOYALTY PROGRAMS
Introducing rewards or discounts for reviews left by customers can effectively encourage active participation in the recommendation program.
SOCIAL MEDIA ACTIVITY
When running social media accounts, you can encourage followers to interact with the brand. For example, creative captions under posts can encourage regular customers to share their opinions about the product they use.
REVIEWS AND RECOMMENDATIONS
During the purchase process, encourage customers to leave reviews about their shopping experience, website functionality, and ease of purchase. Such recommendations allow the company to continuously develop according to customer needs.
GOOGLE BUSINESS PROFILE
This makes it easier for customers to leave reviews since you will be visible in SERP and Google Maps.
Summary
Recommendation marketing is currently one of the most important ways to reach new audiences. It is through it that customers form opinions about our company and are eager to purchase products recommended by others. In today’s world, where recommendations are the main factor guiding people during purchases, this strategy is a perfect tool for breaking through or strengthening one’s position in the consumer market.
FAQ
What is a recommendation?
Answer: Simply put, it is a process in which a customer recommends services or products to others in their environment. Recommendations can also be conveyed through social media, verbally, or by writing endorsements on the company’s or brand’s websites.
What are the risks of using recommendation marketing?
Answer: The primary and only risk of implementing this strategy in our company is the influx of opinions that may negatively impact the brand’s image. However, it is worth noting that honest feedback from customers allows us to draw conclusions and develop products.
How to deal with negative reviews?
Answer: The simplest way is to improve the product’s quality and assure the customer that the next purchase will not be faulty. It is also worth continuously responding to feedback from buyers so that they feel their comments are heard and influence the improvement of the product’s quality.
How to encourage customers to leave recommendations?
Answer: Ask customers for reviews, which is the easiest way to get their attention during the purchase. You can also offer discounts, points, or small gifts in exchange for feedback.
Is recommendation marketing a substitute for other forms of marketing?
Answer: Recommendation marketing is a good strategy to use, but it is not the only one worth implementing.
