Friends direct us to our favourite brands?

What is the key to loyal customers? Every company wants returning consumers, because once we are hooked on a brand, we stay and buy more.

But what is just as important is that loyal consumers will spread the word, telling their friends about their experience, giving the a brand even more loyal consumers, buying even more... 

A new report from Nielsen shows that preferred product and price are the most important factors when buying health and beauty products, which makes sense. But consider how we get hooked in the first place; how does a brand become "preferred"?... 58% of consumers said in the study they bought products based on personal recommendations.

Personal recommendations open the door! According to a study made at Henley Centre, 90% trust their spouse when it comes to consumer products. 82% trust their friends and 69% trust their work colleagues.

Ads are not as strong when it comes to influencing people. Only 27% trust manufacturers/retailers. 14% trust advertisers and just 8% trust celebrities.

Brands become preferred after first being introduced by buddies (or by low price), and this is why companies like Australian Soup and Swedish Pronto are getting more work. They use "word of mouth" marketing, or buzz marketing, to help brands get fans. Very powerful. Very smart.