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Word of Mouth Still Drives Consumers to Black-owned Businesses

Word of Mouth is Still a Huge Factor in Consumers Choosing to Use Black-Owned Businesses

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A new survey from customer experience automation platform, ActiveCampaign, conducted by Dynata research shows that there has been a shift in consumers who want to make purchases or use the services of Black-owned businesses. And some of that shift has absolutely nothing to do with expensive online marketing campaigns.  

ActiveCampaign engaged Dynata to survey 1,000 people in the U.S. in a broad demographic (ages 18–65 plus) in early 2021.   

The survey found that most consumers begin their search for Black-owned businesses online and reach out to their friends, family and business colleagues for company references. Almost half of the survey respondents told Dynata that their awareness of minority businesses comes from social media posts. Still, a large percentage has skirted now traditional marketing campaigns for an old-fashioned guerilla method. Yes, 42% surveyed said they learn about Black-owned businesses by word-of-mouth. 

Utilizing word-of-mouth and online reviews are still crucial indicators, according to the survey, of how consumers make their purchasing decisions in addition to the overall customer experience, whether in the ease of online ordering or how they’re treated in a store. Those businesses that have made this experience positive for consumers continue to grow in the marketplace.  

But, an increasing number of consumers are also making purchase decisions behind brands that reflect their values. The survey revealed that many consumers altered their buying habits over the past year due to social justice or environmental concerns. Of those polled, 19% said they are actively seeking to use sustainable brands, 19% look want minority-owned businesses, and another 19% want to support small businesses. 

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