Forget The Risk. Let Your Customers Sell Your Products

In the past, generating word of mouth was a goal for every marketer but getting the buzz going was a huge challenge.  Today, on communities and in blogs, customers are talking about your product whether you want them to or not.

Earlier this month, Yahoo presented a research study on brand advocates with some interesting findings. Of course, the term “brand advocates” inherently implies that these folks are loyal.  Turns out they are also likely to generate twice as much revenue as non-brand advocates through their recommendations.  For example, in the auto industry, 38% of customers are advocates and 14% of them had at least one friend make the same purchase based on their advice.  Think about it…hundreds of thousands of friends buying new cars without additional marketing spend.

How are these advocates spreading the word?  They have broad social circles online.  On a weekly basis, brand advocates are three times more likely than non-advocates to communicate in an online community, read a blog, or post an opinion.   They like being “go-to” people and they have a built-in audience – 76% of consumers would rather turn to another consumer for information about a product or service than get an expert recommendation.

So…what does this mean for all those risk-adverse companies afraid to jump into social media? They need to stop trying to control the flow of information and meet it head on.  They should provide forums for conversation, take product suggestions from advocates seriously and contribute to the dialogue, even when it’s negative.   It's simple.  Companies need to keep their brand advocates happy and engaged.  The revenue is worth the risk.