Social networks are profoundly changing consumer behavior. More than 75% of consumers say they seek advice from their social networks before making purchase decisions. Over 600 million people use social networks every day. This is where they get their advice. In future, we believe that purchase decisions will be made this way.
Businesses have always recognized the power of referrals made by their customers. Many offer significant incentives for these referrals, as tacit acknowledgment of their quality and the loyalty they engender.
The biggest opportunity for businesses in a socially connected world is to drive new business using the proliferating social connections of their customers. Impactful referrals from like-minded people are just a click away. Companies that rethink their incentive and promotional programs and tie them to customer referrals will discover an extremely effective way of acquiring new customers, at very low cost.
Indeed, this could well become their biggest competence.