Word of mouth has always been crucial for brands, as consumers are typically heavily influenced by the opinion of others they trust. With the development of social commerce, businesses have found new ways to harness the power of consumer recommendations by making various offers and discounts, Marketing Week reports.
Most brands know that user-generated content is a strong marketing tool and are not shy to use it to their own advantage. Pizza Hut, Debenhams and Tesco are all employing the new approach – they encourage consumers to share products and opinions on social sites in exchange for some sort of reward.
Tesco started its Share & Earn scheme last month, which allows consumers on the retailer´s brand page to earn points for sharing content with their friends. Mark Entwistle, marketing director at Tesco.com, says that the scheme is just a way of expressing the brand´s gratitude towards all those who recommend its products online.
However, it appears that many people are happy just to share their experiences, even if they are not offered grand rewards. Frozen foods retailer Iceland knows this, as it is reaping the benefits of social recommendations just by providing consumers with simple surveys to fill in, which are then shared with their friends. Steve Pennington, retail operations manager at the company, says that two million people have already been exposed to branded content thanks to this simple strategy.
