Definition

Recommendation marketing - a type of marketing activities based on recommendations from people who have already tried a given product or service. Satisfied customers become people promoting a given brand, which translates into greater brand awareness among potential customers, improved recognition and higher sales results. The basis for the effectiveness of this strategy is the credibility and trust that potential customers have in current users of given products or services.

Trivia

1. Recommendation marketing is cheaper than traditional advertising, and at the same time, in some cases, it is more effective. 
2. The credibility of the recommended product or service increases seven times compared to the effect caused by traditional advertising.
3. A friend's recommendation of a specific offer quadruples the likelihood of making a purchase.

Information

Recommendation, i.e. recommending something to people around you, may be spontaneous or arranged. In the first case, the initiative comes from a satisfied customer who, after trying the product or service, has a sincere desire to inform people around him about his feelings. An example of spontaneous recommendation marketing could be a friend praising the services of her hairdresser, or a loved one who still uses one brand of cleanser and claims that no other brand has worked better for her. Customer comments about a service or a purchased product serve a similar function on the Internet. The risk of spontaneous recommendation lies in the subjective nature of the assessment - some features of the offer that are attractive to one group of customers may be off-putting to another. It is also worth remembering that the scope of spontaneous recommendation marketing also includes messages discouraging products or services that have not brought the user satisfaction. 

In addition to the natural reflex of sharing positive experiences, sales managers also undertake arranged activities consisting in actively obtaining recommendations. For this purpose, customers are asked to leave a comment on the website, often offering an additional benefit in return (e.g. in the form of a discount), or encouraged to share their opinion with others, e.g. through social media. 

Recommendation marketing is particularly effective among close people because their mutual trust translates into reduced criticism towards the product. When a friend or colleague from work talks about a successful purchase, the person listening to such a statement does not think that someone is trying to sell them something. Rather, the thought arises that "if she found this movie so interesting, maybe it's worth going to the cinema to see the recommended screening." 

The undoubted advantages of recommendation marketing include the ability to create, at a low cost, a base of loyal customers who have a positive attitude towards the company and have a higher than average result on the CLV scale (calculating the customer value based on the price and frequency of orders and the period of brand loyalty), which translates into increased profitability companies. Sellers also gain the invaluable opportunity to receive feedback that can provide suggestions on what next steps should be taken to increase customer satisfaction. 

Summary

Recommendation marketing is a strategy based on recommendations from satisfied customers that contribute to greater brand awareness, improve recognition and increase sales. Activities within this strategy are based on trust and credibility of recommendations, which translates into lower costs compared to traditional advertising, as well as higher effectiveness. Recommendations, both spontaneous and arranged, play a key role in building customer loyalty and acquiring new ones. Recommendation marketing also brings benefits in the form of feedback that helps improve your offering and increase customer satisfaction. 

Related entries:

Marketing plan, image creation, brand management, marketing planning, image creation, customer acquisition, sales audit, branding activities, creating a company brand, image creation