A customer recommendation refers to the action by which a satisfied customer recommends a product or service. This recommendation can be spontaneous, encouraged, or even solicited by the company. Traditionally, spontaneous recommendations circulated primarily through word of mouth, whether within family, friends, or professional circles. With the advent of the internet, a significant portion of recommendations now take place online, through reviews, testimonials, and social media posts. These recommendations can be directed at people unknown to the original referrer.
Customer recommendations are a communication tool that enjoys considerable trust, especially when they come from close friends or acquaintances. In certain sectors, particularly banking and insurance, customer recommendations are crucial for acquiring new customers. For example, Boursorama revealed that half of its new customers were acquired through recommendations, highlighting this point in its communications and emphasizing its close relationship with its clientele.
In the B2B sector, customer referrals also play a major role in reducing the perceived risk associated with choosing suppliers or service providers, which is crucial in industries where mistakes can be costly. It’s worth noting the exceptional conversion rate of the “customer referral channel” in B2B, as highlighted in a cited source.
Marketing managers particularly value customer referrals because they offer a recruitment tool often described as “free” or low-cost, especially within the framework of paid referral programs. Various studies provide valuable data on customer referral behavior and motivations.