Industry Research : YA Survey: Referrals Top Reason Consumers Pick One Brand Over Another
A recent study by YA, a provider in delivering omni-channel marketing promotions, reveals the power referrals have over consumer buying decisions.
In the March 2016 survey of more than 1,000 Americans, 85 percent of respondents said they are more likely to buy a product or service if it is recommended by someone they know, and 76 percent said a referral would cause them to choose one brand over another. In addition, the greatest percentage (38 percent) said that when researching products and services, a referral from a friend is the source of information they trust the most, ahead of online reviews, advertising or news reports.
"52 percent of consumers reported that referrals were very or extremely important when making a purchase. Clearly, Americans are most comfortable making a purchase when someone they know recommends the product or service," said YA President and CEO Chris Behrens. "Simply put, consumers trust and value the opinion of people they know."
Consumers are also very open to making referrals for products and services, with 91 percent of respondents indicating that they give referrals when they like the product. However, only one quarter (22 percent) of survey respondents say they have participated in a formalized refer-a-friend program.
GO FOR GOLD AND REPRESENT YOUR NATION!
Awards for all levels of staff and a fantastic range of corporate awards for contact centers! Click on the banner for details!
According to the survey, 42 percent of respondents cited that they had made a referral when a friend requested information or expressed a need. Without a call to action, consumers are offering referrals when a friend seeks a recommendation. However, consumers are most likely to participate in a referral program after good service (47 percent) or after buying the product (33 percent) according to respondents.
"Timing is key," Behrens added. "Brands should look at their product life cycle and identify key steps in the customer journey to optimize when to ask and incent consumers for a referral. For example, immediately following a purchase or as an integrated part of a customer loyalty program."
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Ergonomics
More Editorial From Young America
Published: Friday, April 1, 2016
Genesys® powers 25 billion of the world’s best customer experiences each year. Our success comes from connecting employee and customer conversations on any channel, every day. Over 10,000 companies in...
Doxim is a provider of SaaS-based customer engagement solutions for credit unions, community banks and wealth management firms. Doxim’s Customer Engagement Platform helps financial institutions transf...
Teleperformance is a global provider of customer experience management in terms of revenue and global scale. We are the industry leader in security and our management has over 30 years of experience w...
Maintaining multi-channel customer support via phone, fax, web and email can be a heavy burden for a company to bear. In addition to maintaining a high quality support system that takes advantage of t...