The voice of the customer has always been one of the most powerful concepts in marketing, and today’s social media platforms act as one giant megaphone for that voice.
In fact, social media has fundamentally changed the balance of power between customers and brands because it enables peer recommendations to play a much greater role in purchasing decisions. According to a McKinsey Study, marketing-inspired word-of-mouth generates more than twice the sales of paid advertising, and these customers have a 37% higher retention rate. Given the importance of peer recommendations and their amplification through social media, influencer marketing has become a widely discussed topic among marketers. This is especially true given the prevalence of influencers in the growing “millennial” and “mom” demographics.
Influencer marketing can be loosely defined as a form of marketing that identifies and targets individuals with influence over potential buyers. In the past, brands may have focused on popular bloggers and celebrities but today there is a new wave of “everyday” consumers that can have just as large of an impact.