50+ Word Of Mouth Statistics (Marketing Stats)
The technique of spreading information through conversations immensely impacts $6 trillion of what people buy every year and is assumed to contribute to 13% of what people purchase.
Word of Mouth Statistics
- Nielsen’s study revealed that 92% of people value advice from friends and family more than advertisements.
- Besides friends and family, 88% of individuals have faith in online feedback from other customers as much as they trust suggestions from personal contacts.
- HubSpot’s data shows that 75% of people do not trust ads, yet 90% rely on recommendations from family and friends, and 70% value customer reviews.
- 49% of buyers would shop online more if they felt more certain about delivery, and 57% are hesitant to use a retailer again if the delivery is delayed.
- People are 90% more inclined to trust and buy from a brand recommended by a friend
- 88% of purchasers depended the most on personal recommendations from acquaintances.
- 75% of folks do not rely on paid promotions.
- In the USA, only 4% of people trust content sponsored by brands.
Word of Mouth Marketing Statistics
- Over the last three years, Google observed a 1500% rise in searches related to “influencer marketing.”
- More than 80% of marketers consider influencer marketing effective in their plans
- 63% of individuals aged between 18 and 34 stated that they “trust what influencers endorse about products more than what companies state about themselves in their ads.”
- 17% of firms will allocate over half of their yearly marketing funds to influencer marketing drives
- 60% of young adults are more prone to take suggestions from YouTube influencers over conventional media personalities
- 86% of women turn to social networks for shopping recommendations
- 130 million users on Instagram tap on shopping posts for product details each month
- 80% of buyers have bought something because of an influencer’s advice
- 41% of shoppers explore new items through influencers weekly
- About 3 in 4 customers would spend up to $629 on purchases influenced by influencers
- 22% of significant buying choices by people aged 18-34 are swayed by influencer endorsements
- 71% of marketers believe the quality of visitor traffic from influencer marketing is better than other sources
ROI of Word of Mouth
- 74% of customers recognize word of mouth as a significant influencer in their buying choices.
- When specific cases were examined, researchers noticed a 10% surge in word-of-mouth (offline and online) leading to a sales increase ranging from 0.2 – 1.5%.
- Word of Mouth marketing outcomes result in 5 times more sales compared to paid media appearances
- 64% of marketing leaders believe word of mouth is the most efficient marketing form.
- 70% of survey participants aim to increase their online word of mouth marketing budget, and 29% plan to raise their offline word of mouth marketing budget.
- 82% of marketers use word of mouth marketing for boosting their brand recognition, with 43% expecting it to enhance their direct sales.
- Word-of-mouth generates $6 trillion in yearly global expenditure and contributes to 13% of all transactions.
- Word-of-mouth is even more potent than paid commercials, leading to five times more sales.
- 64% of marketers acknowledge word-of-mouth as the most potent marketing strategy.
- Majority of marketers (83%) utilize word-of-mouth marketing because itboosts knowledge of your brand.
- 43% of marketersutilize word-of-mouth marketing to raise sales.
- Word-of-mouth marketing generates5 times more purchasesthan paid advertisements.
- The return on investment from influencer marketing is11 times greaterthan banner ads.
Statistics for B2B Word of Mouth Marketing
- When small businesses purchase business software, 46% choose based on recommendations from colleagues and other industry companies.
- 8% of B2B marketersconsider word-of-mouth marketing effective for promoting live marketing events.
- In the United States, word-of-mouth marketing is considered as48% of businesses’ most effective marketing tool.
- Word-of-mouth is a major traffic driver forsmall businesses involved in affiliate marketing.
- 20% of businessesplan to include word-of-mouth marketing in their annual marketing strategy.
- Many businesses learn about new artificial intelligence technologies through colleagues, networking, and observing other companies using them.
- In the United States, word-of-mouth marketing is considered the best marketing tool for48% of businesses.
Stats on Word of Mouth Marketing and Customer Loyalty
- Bain & Co estimates that increasing customer retention by 5% can improve a company’s profits by 75%.
- 65% of consumershave stopped engaging with a brand due to a single negative experience, emphasizing the importance of creating a positive customer journey.
- Emotionally engaging brands receive3 times more word of mouth promotionthan less emotionally connected brands.
- 28% of consumersconsider word of mouth as a vital factor influencing brand loyalty.
- 28% of peoplebelieve that word-of-mouth enhances brand affinity by reflecting a customer’s shared values with a specific brand.
- Customers referred through word of mouth tend tospend 200% morecompared to an average customer.
- Brands establishing an emotional connection receivethree times more word-of-mouth visibilitythan those lacking such a connection.
Word of Mouth Marketing Figures and…Discovering Brands
- Millennials are38% more inclinedto discover new brands through recommendations from friends and family.
- In Australia,42% discover new brandsthroughsearch engines, and38% viaword-of-mouth referrals.
- Generation X predominantly discovers products through word-of-mouth, with18% regularly finding productsthis way.
- For Generation Z, only12% discover new productsthrough word-of-mouth recommendations.
Word of Mouth Data and…Offline vs. Online Impact
- 70% of marketersaim to increase their online word-of-mouth investments, while 29% focus on offline strategies.
- For Amazon Prime Day in 2020, most consumers learned about it through Amazon’s website. However, 17% heard about itfrom friends and family.
- 23% of Singaporean shopperspurchased items in physical stores in 2019 based on friends’ recommendations.
- 37% of Americanschose restaurants based on word-of-mouth referrals.
- Similarly, 31% of electronics purchasesare greatly influenced by word-of-mouth suggestions.
- 20% of North Americansimmediately buy a product after learning about it through word-of-mouth.
Word of Mouth Figures and…Negative Feedback
- According to word-of-mouth statistics, 96% of dissatisfied customersdo not complain to the company after a bad experience; they share it with around 9-15 people.
- About13% of dissatisfied customersshare their negative experiences with 20 individuals.
- In contrast, a happy customer typically tells3 peopleabout their positive experience.
- An overwhelming91% of dissatisfied customerswillnot purchase from a company they’ve had a negative interaction with again.
- Undoing the harm caused by 1 negative review requires approximately 40 positive customer experiences.
- Over half of customers (about 53%) expect brands to respond to negative reviews within a week.
- Only around 1 in 25 consumers will express dissatisfaction with their experience with a brand.
- It necessitates almost 40 favorable customer experiences to counteract the impact of a single unfavorable review.
- 96% of brands take a prolonged amount of time to respond to customers’ mentions on social media.
This article is part of our Martech stats series, which compiles key data and trends. Other series include:
That’s a whole lot – yes, I said Trillion! With a T! Those numbers are quite impressive, resembling the figures associated with Elon Musk.
Word of Mouth marketing has existed since the early days of people recommending things like cave paintings or gladiator battles. It functions because individuals trust recommendations from others.
This idea is known as “Social Proof“, which suggests that following the majority is usually a good idea. People tend to look at others’ choices before making their own decisions.
This mental strategy can have both positive and negative implications for an individual. People observe others’ actions as hints, not definitive proof. Therefore, individuals often emulate others with limited evidence. While this can be advantageous for marketers, they must also realize that if consumers are dissatisfied, negative word of mouth can be extremely destructive.
This leads companies to seek ways to replicate the trust inherent in these types of recommendations. Studies have shown that brands that evoke strong emotional responses receive three times more word of mouth marketing than less emotionally-engaging brands. Consequently, brands need to strategize how they present their marketing, products, and customer experiences to maximize interactions between current and potential customers.
However, achieving this is no simple task. A single misstep can turn word of mouth marketing sour – its impact can be as negative as its positive effects can be beneficial.
Brands must ponder why recommendations from customers’ friends and family carry so much weight in this realm. By incorporating this approach and mindset, we have witnessed brands increasingly utilizing influencers, both large and small. How can brands effectively adopt this grassroots-style of marketing to its fullest extent? And does it truly still work in today’s landscape? Let’s delve into that.
