As one of the UK’s leading tech companies for fashion brands, keeping on top of the latest trends and consumer shopping habits is vitally important. In fact we need to always be one step ahead.
When a collaborative retail report from trade title The Industry.Fashion, and tech marketeers Mention Me, landed in our inbox last week about ‘referral marketing’ – or word of mouth recommendations – we read it avidly.
So what were the key findings of the report?
- The importance of families and friends
Of the 2000 people surveyed (aged from 16-65+), almost half (45%) buy a new fashion product based on the recommendation of a family and/or friend.
- Influencer and blogger backlash
Even though influencer marketing is at an all-time high, (the global market was worth $1.3 billion in 2018 and is set to double by 2020) consumers are rejecting the ‘aggression’ of the paid for #ad across social media platforms. Influencer marketing alone makes up 75% of Estee Lauder’s advertising budget – but if this report is anything to go by should they be looking a little closer to home to find their customers’ key influencers?
Face to face recommendations are far more successful, says Courtney Wylie, VP at Mention Me. In short, whilst we know shopping habits are being driven online, it is offline endorsements that generate a considerable percentage of sales of clothing and accessories – and shouldn’t be ignored.
- Tracking the ROI of Referral Marketing
The report clarifies that there is little ROI on referral marketing, which may imply why several companies shy away from these type of campaigns in order to invest in more trackable activity.
But Wylie flags that businesses can influence referral marketing, and offer incentives to encourage these faces to face conversations. She highlighted that customers need a reason to recommend your brand, and suggested that loyalty schemes, invites to exclusive events and offering desirable products at competitive prices, were key motivators behind any endorsements.
If you manage a fashion brand, the report is certainly worth reading and can be downloaded here.
Finally, if you are looking for a fashion tech company that can transform the way you manage your brand across multi channels – wholesale, concessions, B2B, to name a few, call us on 01234 761 757 or email . We have over 140 brands in our brand portfolio ranging from independent start-ups to internationally recognised fashion game-changers.