WOMM or word-of-mouth marketing has influenced purchasing for hundreds of years and is still going strong in the 21st Century. From supermarket shopping to home buying, people trust the opinions of others. A positive buying experience instills confidence in shoppers and often results in a referral sale. Here are 20 impressive word-of-mouth statistics that you should be aware of.
What is WOMM?
Word-of-mouth marketing involves things that people say about a given product, service, or company. It could be opinions passed from friend to friend or relative to relative. Not only does WOMM mean conversations, but it also includes online reviews and social media posts.
- Nearly 3/4ths of consumers (70%) trust what they read from online reviews. (HubSpot)
- 90% of the people believe personal recommendations when they come from family and friends. (HubSpot)
- Every week, consumers talk about specific brands an average of 90 times. The discussions are casual conversations that occur at work, home, supermarkets, and other environments. (HubSpot)
- There is a 71% chance of a sale when someone is referred by social media and only 7% for those not referred. (HubSpot)
- A vast majority of consumers (83%) trust personal recommendations from friends, family, and colleagues on services and products. This trust is either complete or partial and is the best source for receiving buying information. (Nielsen)
- Word-of-mouth remains one of the most effective ways to promote your business.
- In a 2013 survey, 68% of online review readers trusted what they read from people they do not know. These figures were up from 61% in 2007, making online opinions the 3rd most trusted source, next to branded websites and recommendations from known people. (Nielsen)
- Most consumers (84%) either sometimes or always took action because of personal recommendations. (Nielsen)
- Incentives are 50% more effective for getting personal referrals. Those incentives include cash, gifts, prizes, customer loyalty programs, and social recognition. In a survey from Software Advice, half of the participants said that incentives and gifts were significant for referrals.
- Social recognition is essential when it comes to giving referrals. When asked, 66% of the under age 34 group stated social recognition made them more likely to refer others to a business, service, or product. (Software Advice)
- Material and monetary incentives can make a difference when it comes to generating referrals. For example, 39% of the Software Advice study respondents said that gift cards, discounts, and similar incentives made them more likely to recommend services or products to others.
- Sharing products on social media can bring in a lot of business for a company. Close to half (43%) of social media users have made purchases after viewing favorites or receiving information from someone on Pinterest, Twitter, or Facebook. (VisionCritical)
- Would you like to increase the effectiveness of your marketing efforts? It may not be that difficult. In fact, according to MarketShare, WOMM can improve your marketing efforts by 54%. The study was significant because this kind of information was not previously available. (Forbes)
- According to the Word-of-Mouth Marketing Organization (WOMMA), most people (64%) believe that word-of-mouth is more effective than standard or traditional marketing methods.
- How do you get your news of the day? If you are like 72% of the study people, you get that news from family and friends. (Pew Research )
- Almost as many people (88%) trust what they read from online reviews as what they hear from their personal contacts. (BrightLocal)
- 58% of consumers like to share positive company experiences and are interested in others' opinions on brands. (SDL)
- According to Ogilvy Cannes, nearly 74% of consumers use WOM as a significant factor in making their buying decisions.
- Radius Global reported that WOMM is the top influencer for buying big-ticket items, financial products, clothing, and packaged goods, for Millennials and Baby Boomers.
- When friends share on social networks, it influences 81% of the people affected. (Market Force)
- 77% of brand conversions on social networks are people seeking information, assistance, or advice. (Mention)
Things to Remember
Word-of-mouth remains one of the most effective ways to promote your business. Studies show that most people trust WOM when making purchasing decisions. You can utilize this powerful business tool with social media, incentives for referrals, and requesting online reviews.