Even more than social media, Millennials’ shopping habits are primarily influenced by old fashioned word-of-mouth.

The Great Recession of 2008 hit young workers hard right when they were trying to get on their feet, and the ensuing years haven’t been much kinder. Given what they have already been through, it’s no wonder that Millennials (people born between 1981 and 1996) put high value on trust and word of mouth when it comes to their loyalty to products and brands.

The evolving advertising landscape.

A generation ago, companies harnessed the massive power of radio, television, and printed ads to get the word out about their products. The opinions of friends and family were important, but consumers tended to trust the pronouncements of the spokespeople who touted the virtues of the products and services on sale. With the dawn and spread of the internet, social media, and globalization, that has changed markedly.

These days, buyers are relentlessly barraged with media messages, recommendations, and sensationalized warnings. Celebrities seem to endorse merchandise almost randomly, with little connection between their identity and the brands they promote. As a result, many potential buyers have begun to tune out most of these messages altogether.

These days, it doesn’t take much capital to launch a website, set up an ecommerce platform, and begin to accept credit card payments. Buyers are very aware that a glitzy website and attractive product images do not necessarily mean that a company is credible or above suspicion. Some businesses even use reputation management software to sanitize their brand by removing unwanted negative reviews and feedback from the internet. But for today’s savvy millennials, this air-brushing does not necessarily make for a trusted company.

How to bring the power of word of mouth to your business.

Anonymous social media content and bland banner ads aren’t enough to inspire today’s buyers to open their wallets and sign on with your brand. Ideally, these people want to get the green light from known contacts who have already had a positive shopping experience with your company. When they receive a recommendation from one of these trusted sources, the likelihood that they will become a regular customer is heightened.

As a business owner, it might seem like there is little you can do to encourage other people’s social contacts to recommend your store. However, this supposition is wrong. Below are some of the most effective ways to make this direct marketing strategy work for you.

• Incentivize referrals. Your point of sale system has a database function where you can collect valuable contact information, shopping history, and incidental data about customers. Once you have it, get in touch with them, and incentivize them to refer family and friends. Rewards can be free or discounted products, entries into lucrative drawings or even extra loyalty points.
• Transform social media-savvy customers into brand ambassadors. Millennials might be wary of anonymous social media posts and of ads obviously generated by your marketing team, but the same is not the case when they can identify with people like themselves who have already tried your products and are happy with them. In effect, this replicates the word of mouth that people would receive from a friend or relative.

One estimate posits that word of mouth might be responsible for as many as nine out of ten online purchases. Even if the actual number is less, this figure highlights the importance of spreading the word about your brand and services in the most personalized ways possible. Once you do, the sales and loyal customers will follow.