In this post, we discuss Word of Mouth Marketing Statistics 2023
You may market your company and generate sales in a variety of ways. Paid search, organic traffic, social media marketing, video marketing, SEO, etc.
But, what about word-of-mouth marketing?
It may surprise you to hear that it is responsible for $6 trillion in annual consumer expenditure worldwide, accounting for 13% of all consumer sales.
These are some great numbers on word-of-mouth marketing, and we’re about to share even more. WOM marketing is a free kind of advertising that relies on devoted consumers to circulate information about your services or products in many circumstances.
WOM is a close cousin of viral marketing on the internet, and it works in two ways:
Organic word-of-mouth (WOM) happens when consumers become brand champions because they’ve had a positive experience with the product, are consumers, and want to express their enthusiasm and support.
Amplified WOM marketing strategy: In amplified WOM, a company will start a campaign aimed at encouraging or speeding up word-of-mouth and attracting new customers.
Keep reading this article for some WOM marketing statistics that demonstrate how effective it is and why many people believe it to be the best of marketing.
Facts and Figures on Word of Mouth Marketing
- Whenever it comes to discussing our favorite items with friends and family, 23 percent of us do so on a daily basis.
- At least once a week, 78 percent of us brag about our favorite experiences to individuals we know.
- Whenever a family member or friend recommends a product, 88 percent of people are far more likely to believe it.
- Word-of-mouth (#1) is the most popular way to recommend a business, trailed by Facebook, Google, & Twitter.
- WOM (word-of-mouth) can be positive or negative, and unfavorable word-of-mouth causes 21% of individuals to lose trust in a business, regardless of whether they’ve been a customer.
- By word-of-mouth, 61% of respondents have referred a local brand to someone they know.
- At least 90 times per week, consumers casually discuss certain brands. Consumer online reviews are trusted by 70% of individuals.
- 58 percent of customers use social media to express their favorable experiences with a business and to ask family, coworkers, & friends for their thoughts on companies.
- Brands that elicit a higher level of emotional intensity receive three times the amount of WOM as brands that elicit a lower level of emotional intensity.
- After posting or favoriting a product on Pinterest, Twitter, or Facebook, 43 percent of social media consumers say they bought it.
- When it comes to shopping decisions, 49% of consumers say they lean on influencer recommendations.
- More than 50% of purchases made as a result of social media sharing happen within a week of the sharing or favoriting.
- Within 3 weeks of sharing, 80% of purchases made as a result of social media are made.
- Visual user-generated material is more impactful than brand photographs or videos for 85 percent of website visitors.
- A whopping 83 percent of Americans have passed on a recommendation.
- At least once a month, 55 percent of Americans provide personal recommendations, and 30 percent provide recommendations once per week.
- WOM suggestions from family and friends are valued by 41% of Americans far beyond social media recommendations.
- An anonymous online review is trusted by 66 percent of Americans more than a suggestion from a former boyfriend/girlfriend.
- Before making a purchase, 61% of shoppers use search engines to check product reviews.
- When consumers are granted a reward or social recognition, they are 50% more likely to join a referral program and promote a product.
- Because they had a “wonderful experience,” 71% of respondents will provide a referral.
- 65 percent of companies rely on word-of-mouth referrals to fill open positions.
Statistics on the Effectiveness of Word-of-Mouth Marketing
- Electronic word-of-mouth is responsible for a whopping $6 trillion in worldwide annual spending, accounting for 13% of all sales.
- Word-of-mouth marketing is the most efficient kind of marketing, according to 64% of marketers.
- WOM marketing is used by 83 percent of marketers because it enhances awareness of the brand and the number of clients referred.
- Personal experience is the most valuable source of information. On a five-point scale, marketers ranked the reliability of a word-of-mouth referral as 4.28.
- Almost half of the marketers estimate that recommendations account for 20% to 40% of all leads.
- Word-of-mouth was regarded as the most influential factor in millennials’ shopping decisions for clothing, big-ticket items (such as vacation and technology), financial products & packaged goods.
- WOM was identified as the most influential factor in Baby Boomers’ purchasing decisions for financial goods and big-ticket items.
- People seeking help, information, or guidance account for 77 percent of brand interactions on social media.
- Potential clients are 4 times more inclined to buy after receiving a referral from a friend.
- Word-of-mouth is considered the finest marketing method by 80 percent of furniture retailers.
- WOM marketing increases the overall efficacy of marketing by 54%. When compared to a paid advertisement, word-of-mouth generates five times the amount of sales.
- For small businesses that undertake affiliate marketing, word-of-mouth is one of the most important traffic sources.
- WOM marketing is helpful in promoting live shows for marketing goals, according to 8% of B2B marketers.
- Most firms learn about new artificial intelligence technology from coworkers, networking, and observing how other businesses employ them.
- In 2019, 23 percent of Singaporean customers purchased something in a brick-and-mortar store based on a friend’s recommendation.
- Twenty percent of North Americans who heard about a product through word of mouth bought it right away.
- More than half of craft beer drinkers in the UK said they would order a drink they had never tried if a friend recommended it.
- When it comes to choosing a premium hotel to live in, 17 percent of Chinese visitors say word-of-mouth is 1 of the most important elements in their decision.
- In the year 2019, 28 percent of people contemplated visiting a certain convenience shop after hearing about it from a friend.
- When deciding what to buy for Christmas gifts, 23% of customers use word-of-mouth suggestions.
- When it comes to Valentine’s Day gifts, 23% of consumers are influenced by recommendations.
- WOM is the least common technique to explore new products in Romania, with only 28 percent of the population using it to do so.
- Search engines are used by 42% of Australians to find new brands, and word-of-mouth recommendations are used by 38%.
- Word-of-mouth referrals are how 20% of consumers learn about Smartphone apps.
- 32 percent of individuals learn about new podcasts through word-of-mouth recommendations, including 29 percent of them coming from friends.
- In Mexico and Colombia, word-of-mouth recommendations account for 39 percent of all product introductions.
Positive and Negative Effects of Word-of-Mouth Marketing
- 90 percent of all purchases are made as a result of word of mouth.
- When researchers looked at several individual case studies, they discovered that a 10% boost in word-of-mouth (offline and online) resulted in a sales boost of between 0.2 and 1.5 percent.
- Word of mouth, according to 28% of consumers, has a significant impact on whether a brand’s affinity is strengthened or eroded.
- WOM ranked as the most powerful buying influencer among millennials in each category.
- For expensive purchases and financial items, word-of-mouth is the most influential factor among baby boomers.
- The majority of small businesses (85%) feel that word-of-mouth referrals gained them the most customers.
- Especially if there are several customer reviews, 32 percent of people believe online reviews.
- In some consumer categories, a Facebook fan is worth $174 on average. The biggest motivation for “liking” a company’s Facebook page, according to 79 percent of users, is to receive discounts.
- If given a social recognition, direct incentive, or accessibility to an exclusive brand loyalty program, 39 percent of respondents are willing to make a reference.
- Money or material incentives, such as gift cards, free swag, or discounts, are said to improve the likelihood of recommending a company to others by 39% of respondents.
- Positive word-of-mouth about a firm increases the likelihood of consumers using it by 91%.
- A 10 percent increase in word-of-mouth referrals can boost sales by 1.5 percent.
- An average client will inform around 8 to 16 individuals about a terrible encounter.
- Consumers who have a 2nd negative experience with a company will tell over 20 people about it.
- A happy consumer who has gotten their problem fixed by a company would often tell 4 to 6 people about their excellent experience.
- If a consumer is pleased with their experience with your company, 96 percent of them will visit again, and they are more likely to tell others about their positive experience.
- Only 33% of organizations actively seek out and gather customer reviews.
Statistics on Word-of-Mouth Marketing vs Advertising
- Word-of-mouth is five times more effective than sponsored advertising in terms of generating sales.
- User-generated content and internet word-of-mouth are trusted by 92 percent of worldwide consumers more than advertising.
- WOM has a 115 percent greater influence on millennials than traditional advertising.
- When it comes to wedding preparation, word-of-mouth from friends and family is 331 percent more important than traditional advertising.
- According to a survey conducted by the WOM Marketing Association, 64% of respondents believe that word-of-mouth marketing is much more efficient than traditional marketing.
- Word-of-mouth advertising has been incorporated into 50% of companies’ typical marketing campaigns.
- Consumers distrust commercials, with 75% believing them to be false. For American voters, advertising is the seventh most significant source of information.
Faith in Word of Mouth Stats
- More than a quarter of consumers believe that word-of-mouth improves brand affinity.
- Aside from friends and family, 88 percent of customers believe internet reviews provided by other customers as much as personal recommendations.
- Consumers are 90 percent more inclined to trust & purchase from a brand that a friend has recommended.
- A referral from somebody they know is trusted 41% more than a social media suggestion.
- Internet reviews from other consumers are trusted by 68 percent of respondents, making them the 3rd most trustworthy source of product details.
- 72% of customers agree that reading positive customer evaluations makes them trust a company more.
- In general, it takes 2 to 6 reviews to persuade 56 percent of customers to trust a company.
- If a local business has a 4-star rating, 92 percent of people will use it.
- If a local business has a three-star rating, 72 percent of customers will use it. When it comes to making a purchasing choice, 61 percent of IT buyers feel that a reference from a colleague is the most important consideration.
- When it comes to choosing a restaurant, millennials are 99 percent more inclined than older generations to believe a social media suggestion.
- Before believing a local business, the average consumer examines ten reviews.
- 97 percent of customers who check reviews before buying also read the company’s response to the reviews.
Statistical Results From Word-of-Mouth
- 70% of respondents plan to boost their online word-of-mouth marketing cost, while 29% plan to increase their offline word-of-mouth marketing spend.
- After reading a reputable review, 92 percent of B2B clients are more inclined to purchase.
- After seeing a positive review, 57 percent of consumers will go to the website of a local business.
- Exceptional service was cited by 81 percent of marketers as a way of encouraging word-of-mouth.
- After viewing a positive review, 72 percent of customers will take some form of action.
- Sixty percent of marketers track word-of-mouth recommendations by simply asking clients how they learned about their company.
- Offline word-of-mouth is a source of data and guidance for 56 percent of B2-B buyers.
- When internet word-of-mouth sources are included, the percentage rises to 88 percent.
- When it comes to choosing a source of information, 50% of Americans rely on word of mouth.
Conclusion: Word of Mouth Marketing Statistics 2023
A potent marketing channel that performs incredibly effectively for all types of businesses is word-of-mouth marketing. WOM will always assist you, no matter what industry you’re in.
The following are some of the benefits of word-of-mouth and influencer marketing:
You can raise sales without spending money on advertising: Numerous different brands now rely on word-of-mouth promotion to expand their fan base and improve sales rather than investing money in advertising.
Rather than creating a commodity, it creates a community: Word-of-mouth marketing is a powerful tool for connecting with customers.
Customers that are more involved are more likely to make repeat purchases and refer your business to their family and friends.
Greater funding, more freedom: Customer loyalty & repurchases make your company more appealing to angel and venture capitalists.