Forget social media, friends and family drive purchases
Study indicates that people tend to consult family and friends rather than social media when buying a product
Study indicates that people tend to consult family and friends rather than social media when buying a product. PHOTO: SHIPOUTFROMUSA
PARIS:
Although many companies are pouring money into social media to market their goods, the recommendations of friends and family remain the top driver of purchasing decisions, a study released Thursday found.
"Direct word-of-mouth recommendations from friends and family are by far the most important source of information for customers thinking about buying a product or service," said a study by Boston Consulting Group.
In fact, it found such brand advocacy to be about four or five times more influential than traditional and social media in making purchases.
Read: Evil eyes on Facebook
The study was based on a survey of 227,000 consumers across the world, including the United States, France, Germany and Japan.
It showed half of consumers said they most often consult friends and family before making purchases. Company websites followed at 39 percent, and blogs at 35 percent. Television came in alongside newspapers and magazines at 13 percent, and social media 10 percent.
With recommendations from family and friends also a considerable motor for sales growth, it found customer loyalty programmes and customer experience were important.
The report also found that satisfied customers spent more.
Boston Consulting Group is a global management consulting firm that advises companies in a range of areas, including marketing and sales.
Although many companies are pouring money into social media to market their goods, the recommendations of friends and family remain the top driver of purchasing decisions, a study released Thursday found.
"Direct word-of-mouth recommendations from friends and family are by far the most important source of information for customers thinking about buying a product or service," said a study by Boston Consulting Group.
In fact, it found such brand advocacy to be about four or five times more influential than traditional and social media in making purchases.
Read: Evil eyes on Facebook
The study was based on a survey of 227,000 consumers across the world, including the United States, France, Germany and Japan.
It showed half of consumers said they most often consult friends and family before making purchases. Company websites followed at 39 percent, and blogs at 35 percent. Television came in alongside newspapers and magazines at 13 percent, and social media 10 percent.
With recommendations from family and friends also a considerable motor for sales growth, it found customer loyalty programmes and customer experience were important.
The report also found that satisfied customers spent more.
Boston Consulting Group is a global management consulting firm that advises companies in a range of areas, including marketing and sales.