What Is Social Proof and How Does It Work?

Social proof is a psychological effect in which people are guided by the actions and decisions of others.

This phenomenon is widely used in marketing to increase sales and build customer loyalty.

Reviews from reputable experts, opinion leaders, and celebrities serve as advertising tools and convince potential customers of the value of the product. Positive feedback or experience from real buyers, posted on the company's website or on social networks, increase customer trust and stimulate sales.

Altcraft sharing good customer results

Companies demonstrate the number of readers, likes, and satisfied customers to create the impression of brand popularity and demand. For example, on YouTube, a large number of subscribers to a channel often serves as a sign of its quality.

The principle of social proof was developed by Robert Cialdini. He studied how the opinions of others influence our decisions and identified several types of social proof:

• We are more likely to trust the opinions of experts and celebrities. For example, advertisements often feature well-known doctors recommending medications or athletes promoting clothing.
• What is difficult to obtain seems more valuable. For example, limited offers, "today only" sales, or limited edition products. We think: "I can't miss this opportunity."
• We trust more those we like. People or companies that are actively involved in charity or support environmental projects seem more reliable to us.
• If someone has done us a favor, we feel obligated to reciprocate. If a brand offers us a free version of a product, we are more likely to make a purchase after the trial period ends.
• We appreciate people who keep their word. Companies that adhere to their stated values ​​evoke more positive emotions in us.
• We are more likely to trust the opinion of the majority. For example, after seeing that many people have already used a service or bought a certain product, we are more likely to do the same.

In the field of marketing, social proof plays an important role, especially when it comes to very expensive or new products. In such cases, the buyer does not have enough information to make an informed choice.

With the rise of e-commerce, the significance of social proof is growing exponentially. In the absence of the ability to physically inspect and evaluate a product, individuals rely heavily on the opinions of other users, particularly those who have already purchased the item.

What is Used as Social Proof?

Social proof is any indicator that people have highly valued a particular thing. There are several main types of such indicators:

Feedback. Social proof through reviews is based on trust in the opinions of others — friends, relatives, or strangers on the Internet. Even staged reviews in advertising have an impact. It is important to consider not only positive reviews but also negative feedback. Users often turn to marketplaces or review sites to find an honest assessment of a product or service. And people are more likely to share negative experiences than positive ones. To encourage good reviews, companies often offer bonuses.

Reviews on laroche-posay.co.uk

Bandwagon effect. Social proof becomes even more powerful when it comes to popularity. The more people trust a company, the more likely a new customer is to choose it too. People assume that such a large number of buyers must be making a good decision. For example, when choosing a coffee shop, you might pick the one with a line, figuring the coffee must be better there.

A shop with a large number of positive reviews on DoorDash

UGC. Chances are you've come across engaging product reviews or brand-centric stories in video format. All this is user-generated content. It builds trust, increases audience engagement, and reaches new people. Run contests with reposts and come up with unique and memorable hashtags. You can even collaborate with well-known bloggers.

Products review by a blogger on YouTube

Harnessing the credibility of those who already have it. This can be done by associating with well-known and respected individuals, particularly experts in their field. For instance, when a doctor recommends a medication, we tend to trust their expertise. Similarly, a brand can benefit from this borrowed trust by aligning itself with such experts. If an expert endorses a product, it lends credibility to the brand and encourages consumers to purchase it.

Influencer marketing works on the principle of borrowed reputation. The influence of bloggers on the audience is comparable to UGC but with one important difference: the influencer usually has a bigger following.

Social media marketing (SMM), which was once a rather straightforward approach, is gradually giving way to more subtle and sophisticated formats. Bloggers no longer simply advertise products; they integrate them into the context of their own lives. They show how and where they use the product, share their impressions, and explain in which situations it is useful.

Authentic photos on the website. No more stock images. Brands are betting on authenticity and showing real people: their customers and employees. Text and video reviews with real names and sometimes even links to customer profiles are becoming the norm. Now potential buyers can directly reach out to other consumers.

A review on Altcraft Platform’s website

Client logos on the website. This serves as social proof, demonstrating to potential clients that they are dealing with a reliable and experienced company. This is especially effective when showcasing logos of well-known brands. If you don't have any experience working with large organizations yet, that's okay. Share any interesting and illustrative projects you've completed. The main thing is that these case studies are relevant to your target audience and demonstrate results using concrete results.

Logos on Altcraft Platform's website

Media coverage. This goes beyond mere advertising, serving as a powerful validation of the company's credibility. What do these publications convey? Above all, that the company is held in high regard within its industry. Its work is acknowledged by experts, signifying its trustworthiness.

Source: thetimes.co.uk

How to Benefit from Social Proof

For more expensive goods, where trust is important when making a purchase, such as dental services, fitness courses, or premium smartphones, social proof is of great importance. Customers lack the information to easily make a decision. It is difficult to sell such goods without demonstrating positive feedback from satisfied customers.

However, social proof is also effective for everyday goods. A clothing store with active social media accounts showcasing stylish looks from real shoppers will attract more attention. Or, for instance, a travel agency that proudly displays awards for "Best Family Vacation" is more likely to pique the interest of families planning a trip.

Here's a closer look at how to turn the power of social proof to your advantage.

Referral Program. Studies show most people take recommendations from those close to them seriously. We trust those similar to us, making this type of social proof particularly powerful.

Customer Reviews on Your Website. The more detailed and personal each review, the better. A detailed description of a personal experience increases the chance a potential customer will see themselves reflected in the story — the similarity principle in action. Fabricating reviews is ineffective. Generic phrases like "everything is great" or "awesome" are unlikely to win a customer's heart. It's difficult to write believable feedback without real experience. If your clients are other companies, you'll need case studies. Reviews and logos aren't enough here.

Feedback on third-party resources. The number of reviews is crucial. A product rating of 4.7 based on 200 reviews will inspire more trust than five stars from three users (one of them being the company owner).

Popular bloggers. Their power lies not only in the number of subscribers but also in their storytelling ability. Professional content creators can convey the product's benefits in a vivid and detailed manner. Surprisingly, advertising with micro-bloggers sometimes works better than with celebrities. Many people are willing to buy something based on the recommendation of an influencer with a small but loyal audience.

Focus on the number of customers who have chosen you. Impressive figures, such as "15,000 users" or "500,000 purchases," create the image of an incredibly popular product. This is particularly effective for those who are afraid to miss out on potential benefits.

“Only 2 left in stock!” Rapidly selling a product creates the impression that it has already been valued and loved by others. This works on two psychological principles at once. Firstly, social proof comes into play. People are inclined to trust the opinion of the majority, so they are more likely to buy what others like. Secondly, the principle of scarcity kicks in. We tend to value things that are about to run out. A limited supply creates a sense of exclusivity and prompts a quick purchasing decision.

Source: amazon.com

Increase your social media following. This will create a sense of mass appeal and popularity for your company. People will see that you are already known and used by others, which will in turn increase brand trust.

Leverage expert opinions. Create various materials featuring famous experts; such as articles, videos, or social media posts.

Conclusion

Social proof is a powerful tool that can boost trust in your company, enhance your image, and attract new customers. By employing various methods like testimonials, ratings, client logos, and expert opinions, you create the impression that your product or service is widely popular and trustworthy.

Remember, social proof should be genuine and organic. Faking reviews or using logos of companies you haven't partnered with is unlikely to improve your brand reputation.