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From word of mouth to word of mouse: operating the kind of business where your customers become advocates is a marketer’s dream. This applies especially in financial services, where referral from a trusted source can be far more powerful than interest generated by traditional advertising or marketing.
It is no secret that word of mouth is the strongest form of marketing that a brand or organisation has. Humans are storytellers and we love nothing more than to discuss our experiences.
Back in August I wrote about influence and advocacy, the characteristics of a genuine influencer and how we can recognise true advocates.
This theme was further explored by Amanda Stevens during the FPA Professionals Congress held in Sydney last month when she discussed how businesses can turn clients into advocates and the increasing role that online platforms have when it comes to word of mouth recommendations.
What we need to to remember is that yes, the online world is growing at an exponential rate and we have seen a shift from word of mouth to ‘word of mouse’. This graph from Ben Foster’s blog shows the exponential growth in Facebook users alone, and when we combine this with the growth across platforms such as Twitter, Instagram, Pinterest and user-generated blogs there is a plethora of online content that influences consumer decisions every single day.
Whether you are considering using advocates in your business, or looking to turn your existing clients into influencers within your target market, here are three important factors to consider if you’re looking to engage with your customers and build an advocacy base for your business – be it offline or online.
The importance of women
Women are five to ten times more likely to engage in word of mouth recommendations than men. The typical pattern of female behaviour is that they have a close-knit group of friends who act like a ‘pseudo family’. These inner circles are powerful sources of both recommendations and scathing reviews.
In addition, 80% of consumer purchase decisions are made by women. By meeting and sharing stories within their powerful inner circles they influence each other’s personal decisions.
And what kinds of decisions are they? Here’s a hint: it’s not the grocery shopping. Or not only the grocery shopping. Over 65% of current start-up businesses in Australia are run by women. Females are more involved in commerce than ever before and this, combined with their habitual behaviour, make them a prime target as influencers for your base.
The rise of the 50+ age group
Divorce rates in the 50+ age group are increasing, and there is a trend for couples to wait until their children are over 18 and relatively independent before separating.
What this means for marketing and commerce, is that there is an older segment of society that’s increasingly relying on peer groups for companionship – and advice and recommendations. People in the 50+ age group are very active consumers and they generally have more disposable income than their younger counterparts. Despite this, many brands do not engage with this group, even though they have time to be advocates for their businesses.
The continued importance of good customer service
No matter what the platform, exceptional customer service will always affect consumer behaviour. In Australia, it isn’t difficult to exceed customer expectations, as shown by an American Express study which revealed that 40% of companies miss customer expectations completely and a mere 2% of them exceed customer service expectations.
The same study also found that 72% of Australians have spent more with a company because of their history of good customer service. So there are clear financial benefits for going above and beyond for your customers. So maybe it’s time to start?
