If you’ve watched Amazon Prime’s LulaRich, the story of the multi-degree advertising and marketing firm, LulaRoe, you most likely seen that the important thing to buying a number of ranges was recruiting like-minded folks, whose curiosity had already been piqued by buyer evaluations. (And, if you happen to haven’t watched it but, maintain this in thoughts whenever you do.)
This received us considering. Why was this peer-to-peer (P2P) advertising and marketing strategy so profitable? Why does having somebody relatable—a peer—sharing the non-public experiences they’ve had along with your model, resonate with prospects? Plus, how does P2P advertising and marketing evaluate to its extremely efficient counterpart, influencer marketing?
Read on to see if these #advertisements are simply #fads.
What is Peer-to-Peer Marketing?
Peertopeermarketing.co says P2P advertising and marketing is basically turning your model’s stakeholders (prospects, companions, workers, traders, and so on.) into further advertising and marketing channels. The first step is interesting to your present prospects to encourage them to share genuine evaluations of your merchandise, their procuring experiences, or each.
Really, P2P advertising and marketing is an evolution of phrase-of-mouth advertising and marketing. We’re all aware of the phrase-of-mouth advertising and marketing story: a buyer advised his pal who advised her pal who advised their pals about their expertise along with your model and now your product is promoting like hotcakes. Not solely does this enhance gross sales, however it’s free promoting. The dream, proper?
Peer-to-peer advertising and marketing is simply an extension of this. But, as a substitute of purely natural, literal phrase-of-mouth diffusion, manufacturers truly encourage prospects to take to numerous platforms and share their experiences. After all, 92% of consumers world wide belief the suggestions of their family and friends.
Encouragement from manufacturers can are available in quite a lot of completely different varieties. Typically, this might embrace incentives like bonus rewards factors in a loyalty program, a novel coupon code, or a free product pattern. And, whereas these advantages could enhance the client-model relationship, these methods are supposed to elicit real, genuine evaluations, not drive constructive ones.
Why does Peer-to-Peer Marketing Work?
The key time period right here is authenticity. Peer-to-peer advertising and marketing is extra real than most different advertising and marketing channels. “Peers” don’t have to be buyers’ finest pals, both. Just getting a product assessment from an actual individual, moderately than an ambiguous model or unrelatable celeb, builds belief. In truth, 91% of people repeatedly or sometimes learn on-line evaluations, and 84% belief on-line evaluations as a lot as a private advice.
“Millennials and their Gen Z brethren are interested in authenticity, not salesmanship. They have diminished brand trust compared to past generations, and they want insights from people whose lives are like theirs — not from people who have additional privileges.” – Entrepreneur.com
The mixture of extremely valued evaluations paired wIth youthful generations—significantly Gen Z—flocking to social media for inspiration has created the right platform for buyers to share their real experiences with merchandise or manufacturers.
The (Social) Proof is within the Pudding
As outlined by TechTarget, “Social proof is the influence that the actions and attitudes of the people around us (either in real life or online) have on our own behavior. The ‘proof’ element is the idea that if other people are doing it (or saying it), it must be correct.” The advantage of utilizing present buyer suggestions as social proof in your advertising and marketing efforts is that your present prospects are seemingly fairly just like your potential prospects.
By placing buyer evaluations in your emails, for instance, you’re creating social proof. In the instance beneath, Bite, a sustainable toothpaste model, is displaying their email subscribers that their friends loved their merchandise by that includes direct quotes from present prospects. This is a wonderful instance of how manufacturers can harness peer-to-peer advertising and marketing to make it work of their advertising and marketing methods.
Social media can present a direct line of communication for buyers to attach immediately with one-one other. Potential prospects can join with prospects who’ve bought your merchandise up to now, getting social proof straight from the horse’s mouth. That line of communication shouldn’t be as open, if open in any respect, for connecting immediately along with your model’s product designer or a celeb influencer.
How does P2P Compare to Influencer Marketing?
We’ve touched on it already , however peer-to-peer advertising and marketing is rooted in the concept that potential prospects will see themselves within the individual reviewing your product, making them assume, “Hey, if they like this, I’ll like this too.” Influencer advertising and marketing, however, loses numerous that relatability.
When celebrities and influencers with devoted social followers tout their favourite merchandise by means of promoting channels or social posts accompanied by the now-required “#ad,” it exhibits buyers that these “rave reviews” are being paid for, making it laborious to understand how the influencer truly feels in regards to the product.
The Federal Trade Commission required “#ad” be tacked on to social posts that have been paid endorsements as a result of it’s misleading to move paid posts off as natural. Michael Atleson, a workers lawyer for the FTC’s Bureau of Consumer Protection said, “Many consumers rely upon influencer recommendations in making purchasing decisions, and they should know when a brand paid an influencer for an endorsement, because it affects the weight and credibility the consumers may give to that endorsement.”
While manufacturers can, and will, encourage evaluations and reward prospects who present evaluations and create person-generated content material, it’s not an outright ask to talk fondly of a product in trade for fee. Peer-to-peer advertising and marketing takes all evaluations into consideration—the nice, the dangerous, and the ugly. With not-so-favorable evaluations, you possibly can attain out to prospects who’ve offered detrimental suggestions, work out find out how to repair the issue, or take the difficulty to your product workforce for future enhancements, additional strengthening your relationship with that buyer, and displaying potential prospects that your model listens.
Peer-to-peer advertising and marketing turns into an asset in your model, your present prospects, and potential prospects. Be certain you’re making the most of this person-generated content material in your cross-channel advertising and marketing technique.
Weaving P2P Into Cross-Channel Marketing
Getting prospects to speak about your merchandise (sure, positively and negatively) is a win in your model. Not solely do you will have direct suggestions from the folks utilizing your merchandise—free focus teams, anybody?—however you will have a wealth of recent content material that may be shared by means of your varied advertising and marketing channels, creating social proof.
To discover how a real cross-channel technique might be carried out in tandem with peer-to-peer advertising and marketing, schedule an Iterable demo.