This is the time of year when many marketers are creating their 2019 marketing plans and budgets.
Here are three reasons why Advocate marketing should be in your 2019 marketing game plan:
1. Word of mouth (WOM) is the #1 driver of purchase decisions.
It’s a proven fact: WOM plays a huge role in purchase decisions because it’s the most trusted form of marketing communications.
92% people trust Word of Mouth (WOM) over any form of advertising (Nielsen)
Up to half of all purchases rely on WOM (McKinsey)
88% say buying decisions are influenced by user-generated content like customer reviews (Gartner Group)
It’s therefore critical that you have a systematic, ongoing program to get your Advocates to recommend your brand and products by doing things like:
Creating and posting positive reviews and stories
Sharing your content and offers
2. Advocate marketing is highly effective.
Here are three data points that prove this:
The conversion rate for most traditional marketing programs is about 1% or less. However, conversion rates for Advocate marketing programs is about 35% (Ogilvy)
On average, when brands send messages to 100 prospects this results in about five in-bound clicks. When Advocates send messages to 100 prospects, brands get about 70 in-bound clicks. (Zuberance customer data)
Customers brought in via Advocate referrals are 37% more loyal than customers brought via traditional marketing (Deloitte)
Cut Customer Acquisition Costs via Advocate Marketing
Here’s another proof point below.
This company was paying a whopping $216 per customer to acquire a new customer using traditional marketing methods like paid media. The company cut this to $52 per customer via Advocate marketing.
In other words, the company was able to acquire new customers via Advocate/WOM marketing for one-quarter of the cost of traditional marketing.