Consumers are taking ownership of brands, and their referral power is priceless—Mark Zuckerberg

“78% of the owners say that positive shoutouts on social media are a “significant driver” of business.”

Zlati Meyer of Fast Company says that a lovely Instagram shoutout could save a small business from shuttering this year. Meyer leads her November article by saying few things put more smiles on the faces of small-business owners than social media recommendations about their products or services, and that new research proves that those online shoutouts also put cash in their bank accounts. 78% of the owners say that positive shoutouts on social media are a “significant driver” of business.

Meyer is right: now more than ever people are listening to influencers, friends and family about whom to trust, with whom to do business and where to buy the best products and services. Small retailers are all looking for a new way to ring registers. I have been recommending social media and influencers to our clients for years now. It may be too late for businesses to make a big impact using social media and influencers this year, but they can sure get a good start. Once we begin 2021, retailers must hit the ground running, their arsenal loaded and ready to fire.

I have been meeting with many potential clients who want to meet with our agency and develop their brand on social media, clients who missed the six-month window during the recent Covid-19 struggle to enlist followers. Many say they were scared to spend money or that they feared they had nothing to say. But operating from fear ultimately cost them an audience and a chance to create customer loyalty. Instagram stories are where people get to know about a brand they’ve not heard of before.

In her article, Meyer notes that Teri Johnson, the founder of the Harlem Candle Co., has seen the value of social media recommendations firsthand. Though beauty and lifestyle influencers have cited Johnson’s high-end scented candles, the biggest were nods from singer Alicia Keys and renowned ballerina Misty Copeland.

The importance of social media recommendations grows as consumers become more sophisticated. They turn up their noses at commercials and digital ads, because while those are great at keeping brands top of mind, consumers are more discerning, knowing the messaging is paid for and not always 100% true.

As consumers become more discriminating in their buying decisions, we all look for recommendations from family, peers, or even celebrities to help fill the void for businesses hoping to drive sales.

“Word-of-mouth from peers matters.”

“Word-of-mouth from peers matters,” Meyer says. “Because they’re felt as authentic and genuine. There is less of a perception of authenticity from a celebrity. However, in general, what it lacks in authenticity, it compensates for in the desire to emulate. I wish I were like Brad Pitt. One step closer to being Brad Pitt is drinking the same coffee he does.”

The time to start is now. Please tell all my clients you agree!

Source: Wall Street Journal, Morning Brew, Retail Dive, ICSC