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Many firms, especially retailers, encourage customers to recommend products they have bought or used and even have visitors to their Web site rate the quality of the recommendations. Research has shown that these online product recommendations increase customer loyalty and provide a competitive advantage for sites that offer them. One survey reveals that, of the shoppers who bought from sites with recommendations, 40 percent said the recommendation was the main reason they made the purchase. That group of product recommendation users was also 21 percent more satisfied with its purchases than other buyers and 18 percent more likely than other buyers to buy from that site the next time it needed similar products.
This got me to thinking: What is the best type of customer recommendation?
This got me to thinking: What is the best type of customer recommendation?