50+ Word Of Mouth Statistics (Marketing Stats)
People sharing information influences a significant $6 trillion of yearly consumer expenses and makes up for 13% of consumer purchases.
Word of Mouth Statistics
- Nielsen’s study revealed that 92% of buyers trust recommendations from friends and family more than advertisements.
- Besides friends and family, 88% of individuals have faith in online reviews by other consumers as much as suggestions from personal contacts.
- HubSpot presented data showing that 75% of people don’t trust ads, but 90% have faith in suggestions from friends and 70% trust consumer reviews.
- 49% of consumers would shop online more if they felt surer about delivery, and 57% hesitate to use a seller again if delivery is late.
- People are 90% more inclined to believe and purchase from a brand endorsed by a friend
- 88% of buyers place the highest trust in word-of-mouth recommendations from familiar people.
- 75% of individuals distrust paid ads.
- In the US, merely 4% of buyers rely on brand-supported content.
Word of Mouth Marketing Statistics
- Over the past three years, Google observed a 1500% increase in “influencer marketing” search queries
- More than 80% of marketers believe influencer marketing is effective in their strategies
- 63% of consumers between 18 and 34 years old stated that they “trust what influencers say about brands much more than what brands say about themselves in their advertising.”
- 17% of firms will allocate over half of their yearly marketing budget to influencer marketing campaigns
- 60% of millennials are more inclined to take advice from YouTube influencers compared to traditional media personalities
- 86% of females look to social media for buying suggestions
- 130 million Instagram users tap on shopping posts for product information every month
- 80% of buyers have bought something through an influencer recommendation
- 41% of shoppers find new products through influencers weekly
- About three in four buyers would spend up to $629 on items suggested by influencers
- 22% of significant purchase choices by 18-34-year-olds are impacted by influencer approvals
- 71% of marketers believe the quality of influencer marketing traffic surpasses other sources
ROI from Word-of-Mouth Advertising
- 74% of buyers recognize word-of-mouth as a major influencer in their buying choices.
- Examination of certain case studies revealed a 10% rise in word-of-mouth (both offline and online) resulted in a sales increase between 0.2 – 1.5%.
- Word-of-mouth marketing views bring about 5 times more sales than a paid media view
- 64% of marketing leaders believe word of mouth is the most beneficial marketing form.
- 70% of respondents plan to enhance their online word-of-mouth marketing budget, and 29% will increase their offline word-of-mouth marketing budget.
- 82% of marketers utilize word of mouth marketing to raise their brand recognition, with 43% anticipating WOMM to enhance their direct sales.
- Word-of-mouth influences $6 trillion in yearly global spending and contributes to 13% of all transactions.
- Word-of-mouth holds more sway than paid promotions, leading to five times more sales.
- 64% of marketers assert that word-of-mouth is the most effective marketing form.
- Most marketers (83%) use word-of-mouth marketing because itboosts recognition of your brand.
- 43% of marketers utilize word-of-mouth advertising to raise sales numbers.
- WOMM brings 5 times more sales than paid advertising.
- The return on investment from influencer marketing is 11 times higher compared to banner ads.
Facts about Word of Mouth Marketing for B2B
- When purchasing business software, 46% of small enterprises make decisions based on recommendations from colleagues and other businesses in the same sector.
- 8% of B2B marketers consider word-of-mouth advertising effective for promoting live marketing events.
- In the United States, word-of-mouth marketing constitutes 48% of businesses ’ most effective marketing strategies.
- Recommendations from others count as one of the leading sources of traffic for small businesses engaged in affiliate marketing.
- 20% of businesses intend to incorporate word-of-mouth marketing into their annual marketing plans.
- Most companies learn about new artificial intelligence technologies through recommendations from associates, networking, and observing other companies utilize them.
- In the United States, word-of-mouth advertising ranks as the best marketing tool for 48% of businesses.
Statistics on Word of Mouth Marketing and Brand Loyalty
- Bain & Co project that enhancing customer retention by 5% can skyrocket a company’s profits by 75%.
- 65% of consumers have discontinued associations with a brand due to a single negative encounter, emphasizing the importance of creating exceptional customer experiences.
- Brands that evoke higher emotional intensity receive 3 times more word-of-mouth promotion compared to less emotionally engaging brands.
- 28% of consumers indicate that word-of-mouth plays a pivotal role in either strengthening or weakening their connection with a brand.
- 28% of individuals attribute an increase in brand loyalty (which reflects a customer’s shared values with a brand) to word-of-mouth recommendations.
- Customers acquired through word-of-mouth promotion tend to spend 200% more than an average customer.
- Brands that establish an emotional link receive three times more word-of-mouth referrals compared to those lacking such connections.
Statistics on Word of Mouth Marketing and…Brand Discovery
- Millennials demonstrate a 38% higher likelihood of learning about new brands through suggestions from friends and relatives.
- In Australia, 42% of individuals discover unfamiliar brands via search engines, while 38% lean towards word-of-mouth endorsements.
- Generation X exhibits the highest inclination to discover products through word-of-mouth, with 18% regularly spotting products in this manner.
- In contrast, Generation Z only rely on word-of-mouth to discover new products to a lesser extent, about 12% of the time.
Statistics on Word of Mouth Marketing and…Offline vs. Online
- 70% of marketers are exploring ways to increase their digital word-of-mouth budgets, while 29% are focused on offline strategies.
- When it comes to awareness of Amazon Prime Day in 2020, most consumers learned about it directly from Amazon’s website. However, 17% discovered the event through referrals from friends and family.
- 23% of shoppers in Singapore made in-store purchases in 2019 based on recommendations from friends.
- 37% of Americans determine their dining choices based on word-of-mouth suggestions.
- Likewise, 31% of electronic purchases are heavily swayed by word-of-mouth recommendations.
- 20% of North American consumers who learn about a product through word-of-mouth make an immediate purchase decision.
Statistics on Word of Mouth Marketing and…Negative Feedback
- According to recent word-of-mouth marketing data, 96% of dissatisfied customers choose not to provide feedback to a company after a negative experience, but they do share their grievances with approximately 9-15 people.
- About 13% of unhappy consumers relay their negative encounters to 20 individuals.
- In contrast, content customers tend to inform only 3 people about their positive experiences.
- An extraordinary 91% of displeased customers opt to not directly engage with the business but share their criticisms with a significant number of acquaintances.Do not purchase from a company if you had a bad experience before.
- It needs approximately 40 positive interactions with customers to counteract the harm caused by 1 negative review.
- Almost 53% of customers anticipate brands to respond to negative reviews within a week.
- Only 1 in 25 consumers will voice their dissatisfaction about their experience with the brand.
- It requires nearly 40 positive customer interactions to offset the negative impact of a single bad review.
- 96% of brands take a long time to reply to customers’ mentions on social media.
This post forms part of our Martech statistics series, which consolidates essential data and trends. Other topics include:
That’s a huge number – yes, I said Trillion! With a T! Now, those are some big numbers like Elon Musk’s ones.
Word of Mouth marketing has been present as long as people have been suggesting the newest cave drawing or gladiator match. It works because people believe other people.
This is known as “Social Proof”, which means that most people are right. So, to make the best decisions, individuals look at the choices others have made before making their own decision.
This mental shortcut can have both positive and negative impacts on the individual. These observed behaviors of others are meant to provide a hint, not solid evidence. So, people often imitate others based on limited evidence. This can be beneficial for marketers. However, they must also recognize that if their customers act and feel let down, negative word of mouth can be extremely harmful.
This indicates companies have been searching for ways to replicate the trust that arises from these types of referrals. It has been discovered that brands that evoke strong emotions receive 3 times more word of mouth marketing compared to less emotionally connected brands. This means brands must think about how to position their marketing, product, and customer experience to generate the most engagement between customers and potential customers.
But this is not simple. With one misstep, word of mouth marketing can turn – it can be just as harmful with negative feedback as it can be successful with positive feedback.
Brands need to understand why and how recommendations from customers’ friends and family carry so much weight in this area. By taking measures to use this strategy and mindset, we have witnessed the emergence of brands leveraging influencers, big and small. So, how can brands embrace this unconventional, grassroots marketing style to the fullest? And does it really still work? Let’s find out.
