At CrewFire, we talk a lot about peer-to-peer marketing.
In fact, we’re a little obsessed with it.
But it’s not just us. Peer-to-peer (P2P) marketing is one of the industry’s hottest terms—and for good reason.
Known by many names (word-of-mouth, referral marketing, viral marketing, ambassador marketing, influencer marketing, etc.), peer-to-peer marketing refers to the brand-related conversations held between consumers. These conversations can be organic or incentivized by the brand and hold a special place in the minds of marketers as one of today’s most effective promotional channels. They’ve even been called the “future of reaching people” and the “most powerful force in marketing.”
But just what is it that makes peer-to-peer marketing so effective? We’ve dived into the research—and boy is there a lot of it—to get to the heart of the matter.
Without further ado, here are 50 statistics that help explain why everyone is talking about P2P marketing:
Even if you don’t have a dedicated peer-to-peer marketing program in place, your business is bound to be already reaping the benefits of customer evangelism. Check out these shocking stats on just how much customers talk about their favorite brands:
For many brands, P2P isn’t just another marketing channel. It’s a necessity for staying competitive and growing market share. After all, if customers are going to rave about a brand, you’ll want make sure it’s your own and not a competitor’s.
While marketers often associate word-of-mouth with offline conversations, more and more of these conversations are happening across your customers’ preferred social networks. And, for marketers, this is nothing but good news—as you now have a way to measure, reward, and respond to word-of-mouth.
It’s no secret that millennials place high importance in referrals and online reviews when comparing products or making a high-consideration purchase. However, they’re far from the only generation engaging in peer-to-peer marketing.
In what we call ‘the battle for the eyeballs,’ peer referrals are just what the doctor ordered for getting in front of your target customers. They break through the noise in a way that paid media and other marketing channels just can’t keep up with.
Of course, it’s not just about getting in front of your customers. It’s also about earning their trust. Today’s consumers are both increasingly skeptical of traditional marketing channels and increasingly elusive when it comes to reaching them by paid means, like online advertising and TV commercials.
Fortunately, there is one channel consumers continue to trust: Word-of-mouth. By having your message come from people, rather than corporations, peer-to-peer marketing takes roots in pre-established lines of trust that add the invaluable element of social proof to your marketing message.
For brands, this all means one thing: Revenue. Referred customers typically cost less to acquire, convert easier, stick around longer, and have a higher lifetime value than that of your average customer.
Send them our way, by leaving a comment below or tweeting us at @CrewFireApp, and we’ll work them into this post!
Alan VanToai is the Co-Founder and CEO of CrewFire.