The personal recommendation of a friend – whether it be for an event, service, or product – has a strong persuasive effect. Unlike company advertisements, the close connections we have with people who are part of our personal lives prime us to view the information as coming from a reliable source. This is the idea behind peer-to-peer marketing, and the operative principle of its success.
In this age of technology, the market landscape where businesses employed methods reliant on passive consumerism is undergoing a change. The digital age is decentralizing the one-way top-down relationship that businesses had with consumers, and power is rapidly shifting towards the hands of consumers. The result of this is a peer-to-peer marketing revolution.
According to Nielsen, people are 4x more likely to make a purchase when referred by a friend.
Through social media platforms like Facebook, Twitter, Instagram and LinkedIn, businesses can actively engage and interact with their consumers. People can comment, like and share their opinions with other people who are interested in a product or service they have tried. An increasing number of people rely on customer reviews of businesses, products, services and events to guide their purchasing decisions.
Engaging with key influencers, consumers and fans makes customers feel valued and respected as individuals [Marketingland]. When customers feels like they are valued, this fosters long-term trust and loyalty which is the foundation for long-term relationship with your customers.
Tinuke Akintayo is an intern at SocialLadder. She is currently pursuing a Bachelor’s Degree in Sociology and Anthropology at Swarthmore College as part of the class of 2018. During her free time, she enjoys dancing, listening to music and drawing