According to research conducted by Nielsen, we know that 92% of consumers report that “word-of-mouth and recommendations from people [they] know” are the leading influence on their purchase behavior. Only 37% trust search engine ads, and just 24% trust online banner ads. They trust their friends and family the most when looking for brand recommendations. But what types of recommendations carry the most weight?
Brands are eager to tap into the power of recommendations, and many companies measure an “NPS,” or Net Promoter Score, which illustrates how likely someone is to recommend a specific brand or company. According to a U.K. study by Fred Reichheld, “a 7% increase in word of-mouth advocacy unlocks 1% additional company growth.” His research also shows that “a 12% increase in brand advocacy, on average, generates a 2x increase in revenue growth rate plus boosts market share” and, conversely, “a 2% reduction in negative word-of-mouth boosts sales growth by 1%.”