The news: One-third of consumers first heard about their latest credit card from their friends or family, per a PYMNTS Intelligence survey conducted in August 2024.
- This is a larger share than any other method, including online research or in-person offers.
- And 73% of those who received a recommendation said it was very or extremely influential in their decision-making process.
Why this matters: Word-of-mouth marketing is critical to customer acquisition.
Here are ways credit card issuers can get the most out of word-of-mouth marketing:
-
Create a strong referral program. Referrals encourage cardholders to recommend their credit card so they can then get the associated rewards. Their friends and family are also more likely to act on this recommendation to get rewarded on their end.
-
Invest in influencer marketing. Influencer marketing can replicate word-of-mouth marketing when issuers partner with trusted creators. Many young consumers view their favorite creators as one of their “friends” and therefore tend to follow their advice: Almost half of Gen Zers (48%) and 44% of millennials trust products recommended by influencers, per YouGov.
Our take: Relying on word-of-mouth marketing also creates risks for credit card providers—they can’t control the message being spread.
A cardholder’s negative experience could therefore damage a potential customer’s view of the brand. And when this anti-recommendation is shared on social media, the risks amplify as it reaches more people.
This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.