Even though technological advancements have given birth to a variety of marketing channels and tools, word of mouth or WOM marketing hasn’t lost its relevance.
People continue to interact with each other in social settings and share their experiences as customers and consumers, albeit the modes of these interactions have changed with time. Word of mouth is still the most common way customers learn about new offerings and promotions. It can either help you win more business or cause you to lose clients. Not convinced?
Let’s take a look at some word of mouth marketing statistics to see the role this kind of customer engagement plays in business marketing and how it can affect a business’s reputation. We will also give some word of mouth marketing examples.
Let’s do this!
Can you see yourself asking for or sharing your personal experience with your friends and family? Well, join the rest of us and let’s dive into the word of mouth marketing statistics we collected for you!
Here are some interesting WOM marketing statistics to make you realize the importance of word of mouth in the world of business:
(Source: Referral Candy)
The latest research reveals that word of mouth effectiveness supersedes all other major marketing channels. These include television advertisements, print ads, and even social media.
(Source: Referral Candy)
More than half of the buyers tend to share their reviews of new products and services with other people. Depending on individual preferences, this could either be done online, offline, or both.
The trust factor plays a major role here. Since people trust their friends to give honest reviews of a product, service, or company, they are more likely to purchase from the brands recommended by friends.
(Source: Writer’s Block Live)
Since small businesses do not have huge marketing budgets, they rely heavily on word of mouth marketing to gain new customers, and the majority of them are discovered through word of mouth channels.
The sales percentage may not seem too impressive. But, it can translate to a significant number of sales for big businesses with hundreds or thousands of customers.
(Source: Referral Candy)
Word of mouth marketing not only helps you attract more people but also gets them to spend more money. Simply put, people spend more money when buying from brands they have been referred to or recommended by other buyers than the ones that they have discovered through other channels.
By definition, word of mouth marketing is free and accessible by any business. This makes it one of the most common forms of promotion. People are happy to share their experience with goods or services – either online or face-to-face, either positive or negative.
The word of mouth marketing statistics in 2019 reveal its great influence. Why is that? What makes the word of mouth marketing so important?
It’s all about the driving force – the people. There’s nothing more powerful to us than our own experiences, right?
We seek our friends’ advice on just about every topic we can think of. When it comes to planning a wedding, though – it’s a must that we receive a hands-on experience recommendation about every bit of it. Recommendations from friends are valued over 300 times more than anything else when it comes to planning the big day.
43% of Millenials and 71% of Boomers rely on word of mouth and previous experience when making a purchasing decision about wine and Champagne. Cheers!
With the boom of social media channels, another layer of word of mouth advertising emerged. Now we have at our disposal a good amount of online recommendations shared by our fellow social media friends. As the saying goes: the more word of mouth channels – the merrier, right!
Social media is the perfect environment to get as many viewpoints as we need, to share ours with a broad audience, to take only what fits our interests. All of that with ease, with a great reach and as fast as your internet connection allows.
Paid marketing campaigns can be expensive, time-limited and inefficient. Instead, why not make your customers the ambassadors of your brand. Let them spread the word about the quality and satisfaction with your services.
Your successful word of mouth marketing strategy would be to go the extra mile and inspire both online and offline conversations about your business.
Whether you posted your review online or shared it with your friends face-to-face, it still makes а difference. But we are already very much used to social media, so if you are a business owner, chances are that you will receive a lot of reviews online too. You need to pay close attention to those.
Two-step recipe for success:
First, create your Brand – put your heart in it and second, add Value to your product or service – offer quality above anything else. The final result – a happy customer. One happy customer equals an X amount of potential leads, don’t forget that!
Correct – we trust strangers way more than ads nowadays. Wait, they’re not simply strangers but people with experience that we value and seek. From unboxing and assembling a new drawer – to fixing an irritating error popping up in Outlook.
Word of mouth marketing stats are clear that we seek reviews of other people. 77% of people would write a review if asked, so give people the means to do so, sit, watch and analyze the feedback.
We touched on this already – outrageous comments get the most attention on the web. How exactly impactful is negative word of mouth? Let’s see.
(Source: Reputation Refinery)
Negative word of mouth marketing can ruin your business’s reputation since consumers are more likely to share bad experiences and with more people than they would share a good experience with. What makes this behavior even more troubling is that most customers do not register their complaints with the brand they have had bad experiences with. This means, in most cases, that brands won’t even know how many potential customers they are losing due to negative word of mouth marketing and, hence, won’t be able to do anything to control or rectify the damage.
How is the advertising industry performing in 2020 compared to people’s recommendations – offline and online?
There’s clearly a contradiction here. While product recommendations are a standard and the results are clear, businesses still tend to somewhat disregard word of mouth influence.
The popularity of social media has us spending longer on our mobiles doing all sorts of things – and we’re constantly interacting with each other. Word of mouth is more powerful than ever.
How do we do that? It’s not a simple process, of course, but it’s doable.
Here are some word of mouth marketing ideas that you can work on and apply to your marketing approach:
With an estimation that by 2040, 95% of all purchases would be made through eCommerce, you should think again about your web presence. Design your website with a smooth checkout process, ask for feedback, create a community on social media and interact with your customers – the happy and the not so happy ones.
Word of mouth marketing statistics demand that you take the good with the bad. Make it right!
At the end of the day, WOMM is the power of people to build brand awareness and why not bet on it as a business owner? With a polished product and outstanding service, a word of mouth marketing strategy can get your business to the next level.
Amazon is the most loved brand in America in 2019 with 68% of consumers trusting the brand and about 80% with a favorable opinion about it.
WOMM is the perfect advertising strategy to create buzz and sentiment around your product or service and have people organically raise your brand’s popularity. The best part of it – it’s free of charge!
A: It is a form of promotion where a user of a certain product or service recommends it to others. The traditional form of word of mouth used to happen face-to-face. Lately, though, we have been giving WOM recommendations online too – via social media, forums, product reviews, etc.
A: It is a process of actively encouraging conversation (either offline or online) about your brand, service, event, etc. There are various techniques that marketers apply to achieve the goal – have people build your brand’s awareness themselves.
A: Various paths to get there:
A: Word of mouth recommendations are a powerful tool you can use to drive sales. Websites that feature reviews or ratings influence purchasing decisions – 63% of visitors are more likely to buy after reading one.
A: There are a couple of easy steps to take:
A: Yes. It’s a way to get free advertising for your products and services – through people recommending them to each other. The recommendations are shared either face-to-face or online.
A: WOM increases sales 5 times more than paid advertisements. Face-to-face advice has a bigger effect on purchasing decisions than online reviews; however, both can make a huge difference.
Marketers are well aware of the effects of the word of mouth marketing techniques. Being arguably the most dynamic, evolving and impactful industry today, marketing specialists are equipped with the tools to measure that effect.
While the core of WOMM is still the advice based on personal experience, there are still ways to take this concept further. As with anything that brings money, marketers have taken WOMM down to a science. As such, it has the potential to bring in great results.
We hope that with the word of mouth marketing statistics we talked about, we triggered your interest to learn more about WOMM. Why not implement it into your marketing strategy?
See you soon!