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47 Word-of-Mouth Marketing Statistics That You Should Know

Recommendations

  • 58 percent of the consumers have positive experiences and they also seek experiences that are positive from their family and friends as they talk about brands they are interested in on social media(SDL)
  • 77 percent of the consumers are interested in buying new products when they learn about it from their family and friends. (Nielsen)
  • 84 percent of the consumers completely trust the recommendations they get from their family and friends (Nielsen)
  • 89 percent of the millennial women trust the recommendations they get from their friends, peer, family members more than the recommendations from the brand. (Mom Central)
  • 36 percent of the books that has been sold because of the topic.(Nielsen)
  • 33 percent of the books sold is because of the author.(Nielsen)
  • 21 percent of the books sold is because of recommendations from family and friends. (Nielsen)
  • 25 percent of women are more likely to rely on their friends than men relying to theirs for advices related to financial matter.(Nielsen)
  • 84 percent of the global consumers believe that recommendations from the friends and family could be trusted more than information sources of the products. (Nielsen)
  • 43 percent of the consumers would more likely purchase a product they learned about from social media.(Nielsen)
  • 68 percent trust the online opinions from people who have actually used the products. This is why online opinions are the third most trusted source of product info.(Nielsen)
  • 71 percent of the consumers in United Kingdom recommend a company if they have experienced a positive customer service experience. (Loyalty360)
  • 14 percent of the European smartphone owners have actually called or SMS a friend or family about a product while they are shopping in a store. (ComScore)
  • 40 percent of the moviegoers in the US value the recommendations that come from their family and friends ono Social Media Channels. (Nielsen)
  • 45 percent of the teens in the US have book references which are influenced by social media sites. (Nielsen)
  • 56 percent of the grocery shoppers globally learn about the latest products through friend and family recommendations. (Nielsen)
  • 77 percent of the advices from family and friends are more persuasive as they look for new product information. (Nielsen)
  • 30 percent of the consumers learn about the latest products from personal social media accounts of their friends. (Gladson)
  • 62 percent of the social media users from Europe have more chances of watching a movie trailer a friend has liked on Facebook. (European Commission)

Word Of Mouth

  • $6 Trillion of the yearly consumer spending is driven by word of mouth. (CMO)
  • 20 to as much as 50% of the purchases are from word of mouth recommendations. (AdAge)
  • 92 percent of the consumers from all over the world trust the earned media such as the recommendations from family and friends, and word of mouth above all the other advertising strategies. This is an 18 percent increase compared to 2007. (Nielsen)
  • 74 percent of the consumers identify word of mouth as one of the best influencer as they decide to buy something. (AdWeek)
  • 62 percent of the marketers from the US, Canada, UK are satisfied with the business value of the campaigns of word of mouth marketing. (Forrester Research)
  • High emotional intensity brands compared to low emotional brands earn as much as 3 times more word of mouth. (Keller Fay)
  • 28 percent of the consumers say that word of mouth is the most important factor in eroding the brands affinity or strengthening it. (Kentico Software)
  • 30 percent of the consumers in the US rely on word of mouth from their friends and family when they research for medications. (Orc International)
  • Consumer to consumer word of mouth that are marketing induced generates 2x more sales compared to other source of paid advertising. (McKinsey)

Referral Marketing

  • 37 percent retention rate for customers who were referred by the other customers. (Deloitte)
  • 16 to 25 percent higher lifetime value for referred customers. (Wharton School of Business)
  • Referrals who are friends are more likely to succeed when used by online businesses. (eMarketer)
  • Customers who are referred tend to be more loyal than the customers who discovered you on their own. This difference actually persist over time. (American Marketing Association)
  • 39 percent of the respondents say they they are more likely to refer their friends for monetary incentives. (B2B Marketing Mentor)
  • 66 percent of the respondents who are under 34 years of age are more likely to refer their friends after receiving social recognition. (B2B Marketing Mentor)
  • 72 percent of the marketers don’t leverage or recognize customer referral value. (Loyalty360)
  • 50% of respondents have higher chances of giving a referral if they are offered an incentive, access to exclusive loyalty programs, or social recognition. (B2B Marketing Mentor)
  • Offering rewards are known to be an encouragement for referrals but the size of the reward won’t really matter. (American Marketing Association)
  • Between acquaintances, rewards are an important factor to increase referrals. (American Marketing Association)
  • 49 percent of the consumers are in some way influenced by product referrals from their social media channels.(Marketing Land)
  • 83 percent of the advocates are very much likely to share information about the products you’re selling compared to the typical web users. ( BzzAgent)
  • Advocates have 50 percent more chance to be able to influence a person from buying. (BzzAgent)
  • There’s a 75 percent more chance for advocates to share an amazing product experience. (BzzAgent)
  • Advocates would likely share a product opinion 3 times more with people they don’t know. (BzzAgent)

Referral marketing and Word of mouth marketing works hand in hand because they enhance and amplify each other. Most of the time they are treated as synonymous but they are more like siblings. The playoff of word of mouth marketing is huge, but it remains to be intangible from a planning standpoint. As long as you get to hit hard at the start, you would be able to see very good results. Social media, and emails are a very modern touch points that makes it very easy to spread the word. Now, referral marketing is also good because it removes every thought of being uncertain because it’s very straightforward and it gets the ball rolling right away. Referral marketing focuses not only in spreading the word but also considers A/B testing, incentives, and other related strategies. When you ask a referral after putting an incentive in front of people, there’s really no need for them to actually love the product. Their friends would also be looking at their referral because there’s an offer for them too which makes it more interesting. In referral marketing you are the one giving people the chance to share and get rewards from it, it levels the playing field- and everybody loves getting something in return.

Conclusion

When it comes to word of mouth marketing, it involves good interactions, nurturing the relationship through advocates. Referral marketing is more on accelerating the conditions that make word of mouth work effectively. Referral marketing is manageable at scale through a software. So, if your idea is to capitalize on the power of recommendations and put in effort into word of mouth marketing then referral marketing would be your answer. There’s no magic, but there’s referral marketing which is manageable, trackable, and optimizable.

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