According to a study conducted by Nilsen, 92% of consumers trust recommendations from friends and family more than traditional advertising. The report states that word-of-mouth marketing accounts for $6 trillion annually and is expected to be responsible for 13% of customer sales by 2028. Conversely, a study from the Wharton School revealed that while 83% of consumers are willing to recommend a brand or product, only 29% actually do.
According to Felipe Otoni, CEO of SegSmart, a company that aims to optimize the sales processes of products and services online for anyone or any business looking to boost their business, the data indicates that corporations are losing money. “People live in social groups, and that’s why referral marketing provides good results, with a conversion rate of 80%. This is because when someone recommends a product or service, they do so to an individual they know and believe will benefit from it. Therefore, it’s crucial for corporations to have a referral program and seize the opportunity to maximize their results,” explains the executive.
According to Otoni, the word of a satisfied customer is the best social proof – a mental trigger to accelerate sales through influence – that a brand can have, as it has the ability to change the perception and decision-making of a potential customer who is in doubt. In this scenario, the CEO of SegSmart provides three tips to turn customers into brand advocates, check it out:
Know When to Get New Leads from Customers
The first step is to understand that there are strategic moments to address the issue with the client. “The timing to talk about referrals makes all the difference. The best periods are: at payment; upon delivery of the product or service; and, when the consumer perceives positive and tangible results. These situations are favorable because he is in a moment of high satisfaction and, therefore, more inclined to recommend your brand,” explains Otoni.
Offer incentives
According to the Manager’s Yearbook: CX Trends 2024, prepared by OpinionBox in partnership with Octadesk, 48% of Brazilian consumers make a point of publicly praising a brand and recommending it to friends and acquaintances after a good experience. In this context, Otoni highlights that it only takes a satisfied customer to start a cycle of recommendations, which can be incentivized with a rewards system. “In addition to thanking for the referral, show the consumer how important this is to you. One way to do this is to adopt a methodology that rewards those who made the recommendation. Thus, when the sale is concluded, the person responsible for the recommendation receives a commission, which motivates them to bring in new contacts,” explains the executive.
Cultivate the relationship Finally, Otoni emphasizes that it is crucial to preserve and cherish the customer relationship in the post-sales, because this action reinforces the consumer’s trust in the brand and generates spontaneous referrals. “From the moment you encourage referrals in your company, this opens up a new sales channel that requires little investment and generates a great deal of return,” he concludes.
