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WOMM is one of the most powerful marketing tools available because it’s based on trust. When we hear about a new product or service from a friend, we’re more likely to check it out than if we saw an ad for it. That’s because we trust our friends’ recommendations more than we trust a company’s marketing message.

WOMM can be an effective way to reach new customers, but it only works if you have a satisfied customer base that is willing to spread the word about your business.

If you provide excellent service and create happy customers, they will do your marketing for you.

Key Word of Mouth Statistics

About a quarter of us talk about our favorite products on a daily basis with our loved ones.
78 percent of us share our most memorable moments with friends and family on a regular basis. People are 88% more likely to trust a brand that has been recommended by a friend or family member.
Word-of-mouth (#1), Facebook, Google, and Twitter round out the top five most popular methods of recommending a business.
There are both positive and negative aspects to word-of-mouth (WOM), and 21% of people lose faith in a brand due to negative WOM, regardless of whether they’ve ever purchased from the company.
By word-of-mouth, 61% of people surveyed have referred a local business to someone they know.
At least ninety percent of the time, consumers casually discuss specific brands. Consumer reviews on the internet are trusted by seventy percent of internet users.
More than half (58 percent) of customers use social media to tell others about their positive experiences with a company or to solicit feedback from friends, family, and coworkers.
Brands that elicit strong emotional responses receive three times as much positive word-of-mouth (WOM) as those that don’t.
When a product is shared or favored on Facebook, Pinterest, or Twitter, 43 percent of social media users end up purchasing the item.
Almost half of the people (49 percent) say they rely on influencer recommendations when deciding what products to buy.
More than half of purchases are made within a week of being shared or favored on social media.
Within three weeks, eighty percent of people who see an item shared on social media will make a purchase decision.
85% of website visitors find visual user-generated content more influential than brand photos or videos, according to a recent study.
According to 83 percent of Americans, they’ve made a recommendation via word-of-mouth.
Personal recommendations are made at least once a month by 55% of American adults, and 30% of adults make recommendations once a week.
WOM recommendations from family and friends are more valuable to Americans than social media recommendations, according to a survey conducted by Pew Research Center.
A recommendation from an ex-boyfriend or ex-girlfriend is more trusted by 66% of Americans than an anonymous online review.
61 percent of consumers use search engines before purchasing a product.
An incentive or social recognition increases the likelihood of customers participating in a referral program and spreading the word about a product by 50%.
71% of people are more likely to recommend a product or service if they had a “great experience” with it. 65 percent of companies rely on employee referrals when it comes to filling open positions.

Word of Mouth Marketing Effectiveness Statistics

Approximately 13% of all sales are driven by electronic word-of-mouth, which generates an annual global spending volume of $6 trillion.
64 percent of marketers believe that word-of-mouth marketing is the most effective form of marketing.
Brand awareness and customer referrals are increased by 83% of marketers who use WOM marketing.
A person’s own life experiences are the most valuable sources of information.
On a scale of one to five, word-of-mouth leads were rated at 4.28 out of five.
According to nearly half of all marketers, referrals account for between 20% and 40% of all new leads generated.
When it comes to clothing, and big-ticket items (like travel and electronics, packaged goods, and financial products), millennials ranked word-of-mouth as the most important influencer in their purchasing decisions. 
WOM was the most important factor for Baby Boomers when making purchases of financial and high-ticket items.
A whopping 77% of brand conversations on social media are centered around people looking for help, information, or advice.
Potential customers are four times more likely to make a purchase after hearing about it from a friend.
Word-of-mouth is considered the most effective marketing strategy by 80 percent of furniture store owners.
There is a 54% increase in overall marketing effectiveness when using WOM strategies.
Five times as many sales are generated by word-of-mouth than by paid advertising.
For small businesses that use affiliate marketing, word-of-mouth is one of the most important sources of traffic.
8 percent of B2B marketers believe that word-of-mouth marketing (WOM) can be used to promote live events.
Most businesses first learn about new AI technologies from colleagues, networking, and seeing how other companies are using them.
About 23% of Singaporeans made a physical store purchase in 2019 because a friend recommended it.
According to a recent study, 20% of North Americans who heard about a product via word-of-mouth purchased it immediately.
As many as half of British craft beer drinkers said they’d be more likely to buy new beers they’d heard about from friends.
One-fifth of Chinese hotel guests say that word-of-mouth is the most important factor in their choice of a luxury hotel.
A friend’s recommendation prompted 28% of people in 2109 to give a convenience store a second thought.
23 percent of Christmas gift-buyers take recommendations from friends and family into account when deciding what to buy.
Valentine’s Day gifts are influenced by 23 percent of people’s recommendations.
In Romania, only 28 percent of the population relies on word-of-mouth marketing (WOM) to learn about new products.
42 percent of Australians use search engines to discover new brands, while 38 percent rely on recommendations from friends and family.
Word-of-mouth recommendations are how 20% of people learn about new smartphone apps.
With 29 percent of those recommendations specifically coming from friends, 32 percent of people discover new podcasts via word-of-mouth recommendations.
39 percent of people in Mexico and Colombia learn about new products through word-of-mouth recommendations.

Word of Mouth Marketing Stats: Positive and Negative Impact

Most purchases are influenced by recommendations from friends and family.
In some specific case studies, researchers found that a 10% increase in word-of-mouth (online and offline) resulted in a 0.2 to 1.5% increase in sales.
Word-of-mouth, according to 28% of consumers, has a significant impact on whether or not people have a strong attachment to a brand.
A majority of millennials rely on word-of-mouth (WOM) to make purchasing decisions.
When it comes to major purchases and financial products, word-of-mouth is a king among baby boomers.
85% of small businesses believe that word-of-mouth referrals are the most important source of new customers.
If multiple customers have left a review, 32 percent of consumers are more likely to believe it.
In some consumer categories, a Facebook fan is worth an average of $174.
In fact, 79% of those who “like” a business’ Facebook page do so primarily in order to take advantage of special offers.
If a direct incentive, social recognition, or an exclusive brand loyalty program is offered, 39 percent of respondents are more likely than not to recommend the product or service.
39 percent of respondents say that monetary or material incentives such as free swag, gift cards, or discounts have a significant impact on their likelihood of recommending a brand to other people.
91% of customers are more likely to use a business after hearing good things about it from others.
Sales can rise by 1.5% if word-of-mouth referrals increase by 10%.
Between 8 and 16 people will hear about a bad customer service experience on average.
Over 20 people will be informed about a customer’s second negative experience with the company.
Four to six people, on average, will hear about a company from a happy customer who had their issue resolved.
96% of customers will return if they have a positive experience with your business, and they are more likely to tell others about it.
Fewer than one-third of companies actively seek out and collect feedback.

Word of Mouth Marketing vs. Advertising Statistics

Consumers around the world place more faith in user-generated content and online word-of-mouth than traditional forms of paid advertising.
As a result, word-of-mouth (WOM) is 115% more influential on millennials than traditional advertising.
331 percent of a wedding’s success can be attributed to word-of-mouth recommendations from family and friends.
64 percent of Word of Mouth Marketing Association survey participants strongly or completely believe that word-of-mouth advertising is more effective than traditional advertising.
More than half of all marketers now use word-of-mouth advertising in addition to more traditional forms of advertising.
Seventy-five percent of consumers say they don’t believe ads and don’t trust them.
In the United States, advertising is the seventh most important source of information for voters.

Trust in Word of Mouth Statistics

In the opinion of more than a quarter of consumers, word-of-mouth marketing increases brand affinity.
Eighty-eight percent of people trust online reviews as much as they do personal recommendations from family and friends.
People are 90% more likely to trust and purchase from a company that a friend has recommended.
41 percent of people trust a recommendation from a person they know more than a recommendation from a social media platform.
More than six in ten people rely on online reviews from other customers, making them the third most trusted source of product information.
More than two-thirds of consumers say reading positive customer reviews helps them feel more confident in a company.
56 percent of customers are willing to place their trust in a company after reading two to six reviews.
If a local business has a 4-star rating, 92% of users are more likely to patronize it.
If a local business has a three-star rating, 72% of consumers are more likely to patronize it.
Most IT buyers cite recommendations from colleagues as the most important factor in their purchasing decisions.
There are 99.999% more people who trust social media recommendations from friends and family than those who don’t use social media when making a restaurant choice.
It takes an average of 10 reviews before a customer decides to put their trust in a local business.
97 percent of the people who read reviews before making a purchase read the business’ response to those reviews.

Results From Word of Mouth Statistics

More than two-thirds of respondents plan to increase their online and offline WOM (word-of-mouth) marketing budgets, respectively.
Trusted reviews increase the likelihood of a B2B buyer making an actual purchase by 92%.
Customers who read positive reviews are more likely to visit a local business’s website.
Eighty-one percent of marketers said their strategy for encouraging word-of-mouth was to provide exceptional service.
After reading a positive review, 72% of customers will take some sort of action.
By asking customers how they heard about the business, 60% of marketers are able to track their word-of-mouth referrals.
56 percent of B2B buyers rely on offline word-of-mouth as a source of advice and information.
When online word-of-mouth sources are included, this number rises to 88 percent.
Fifty percent of Americans rely on recommendations from friends and family when making informed decisions.

Conclusion

More than two-thirds of respondents plan to increase their online and offline WOM (word-of-mouth) marketing budgets, respectively.

Trusted reviews increase the likelihood of a B2B buyer making an actual purchase by 92%.

Customers who read positive reviews are more likely to visit a local business’s website.

Eighty-one percent of marketers said their strategy for encouraging word-of-mouth was to provide exceptional service.

After reading a positive review, 72% of customers will take some sort of action.

By asking customers how they heard about the business, 60% of marketers are able to track their word-of-mouth referrals.

56 percent of B2B buyers rely on offline word-of-mouth as a source of advice and information.

When online word-of-mouth sources are included, this number rises to 88 percent.

Fifty percent of Americans rely on recommendations from friends and family when making informed decisions.

When compiling this list of word-of-mouth marketing statistics, we found the following resources very helpful: 

  • Big Commerce 
  • Invesp 
  • ReferralRock 
  • SEM Rush 
  • Everyonesocial 
  • GetAmbadassor 
  • Convince and Convert

CHECK OUT THESE STATS AS WELL

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