Are Peer Recommendations the way of the Future?
Written BY: Alex Pirouz
Social Media is just another evolutionary step in the way Internet is a connector of people. Every year we are becoming more and more connected with people all around the world and as the years go on we are only going to get closer to each others' lives.
Social media has enabled our lives to be more effective and efficient in how we connect and stay in touch with people. Because of this more people are turning to their friends for product/service recommendation before making a decision on whether or not they are going to buy.
According to a study conducted by The Nielsen Company, participated by approximately 25,000 respondents from 50 countries, 90 per cent of consumers surveyed noted that they trust recommendations from people they know, while 70 per cent trusted consumer opinions posted online.
“The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly,” says Jonathan Carson, President of Online, International, for the Nielsen Company.
This general fact is evident in our everyday lives. If you think about it, you would normally trust what your closest friend would say against what is said on TV or newspaper ad.
It is an indication that people find it more enticing to purchase with what their friends or other consumers suggest rather than what they see on commercials.
READ TOP CONTENT FROM THE WDM CONTENT NETWORK
* Business Travel: The Melbourne Marriot Hotel
* The Top Ways Businesses Can Maximise the Power of Google
* Innovators: IBM’s Watson Dominates
* Read the latest Business Review Australia!
According to Adam Davis of Show Clicks, “People these days want up to date information and want to connect with each other at a more effective and efficient manner. With conversion rates you can already see social media taking over other forms of advertising. Obviously you can reach a lot of people through a TV ad but then again you will have to pay the price whereas with social media you don’t and you will get a better trust rate.”
So the next time you think of advertising, conduct market research and find out the main avenue your customers are using to buy and market in that space to get maximum value from your marketing spend.