Networking: why bother?
Business research shows the real benefits of networking, and why should we be investing in developing our referral skills ahead of other forms of advertising.
We typically trust word of mouth referrals more than any other source.
Traditional channels continue to be trusted more than “on-line” channels.
Word of mouth business referrals typically result in:
· Higher order conversion rates on web sites (up to 75% higher)
· Greater likelihood of repeat business (up to 37% higher)
· Greater customer lifetime value (up to twice the value).
The table below compares the extent we trust referrals by “word of mouth” with other forms of “advertising”.
|
Traditional |
On-line |
||
|
Referral - word of mouth |
84% |
|
|
|
On-line: consumer opinions |
|
68% |
|
|
Editorial content - newspaper |
67% |
|
|
|
Ads on the TV |
62% |
|
|
|
Ads in magazines & newspapers |
60% |
|
|
|
Ads on-line from search engine results |
|
48% |
|
|
Ads on-line video |
|
48% |
|
|
Ads in Social networks |
|
48% |
|
|
Ads on-line banners |
|
42% |
|
|
Ads linked to texts |
|
37% |
Source: The Nielsen Company 2013. % scores relate to completely trust and somewhat trust scores – global averages.
