Word of Mouth Statistics
- A report by Nielsen shows that 92% of consumers trust recommendations from friends and family over advertisements.
- Besides friends and family, 88% of people rely on online reviews made by other consumers as much as they trust suggestions from personal contacts.
- HubSpot’s study indicates that 75% of people lack trust in ads, but 90% trust recommendations from family and friends while 70% trust consumer reviews.
- 49% of consumers would shop online more if they were more sure about delivery, and 57% hesitate to shop again from a retailer if delivery is delayed.
- People are 90% more inclined to trust and buy from a brand recommended by a friend.
- 88% of consumers put the highest level of trust in word-of-mouth recommendations from people they know.
- 75% of people distrust paid advertisements.
- In the US, only 4% of consumers have trust in brand-sponsored content.
Word of Mouth Marketing Statistics
- Over the last three years, Google has seen a 1500% increase in searches related to “influencer marketing.”
- More than 80% of marketers believe influencer marketing is effective in their strategies.
- 63% of consumers aged 18 to 34 mentioned that they “trust what influencers say about brands much more than what brands say about themselves in their advertising.”
- 17% of companies will allocate over half of their annual marketing budget to influencer marketing campaigns.
- 60% of millennials are more receptive to advice from YouTube influencers than traditional media personalities.
- 86% of women rely on social media for buying guidance.
- 130 million Instagram users click on shopping posts for product details each month.
- 80% of consumers have made a purchase based on an influencer’s recommendation.
- 41% of customers discover new products through influencers weekly.
- Approximately 3 in 4 consumers are willing to spend up to $629 on purchases influenced by influencers.
- 22% of significant buying decisions by 18-34-year-olds are impacted by influencer endorsements.
- 71% of marketers believe that the quality of traffic from influencer marketing is superior to other sources.
Stats About Return on Investment from Word of Mouth
- 74% of consumers consider word of mouth as a major factor in their buying choices.
- After examining specific case studies, researchers discovered a 10% increase in word-of-mouth (both online and offline) translated to a sales boost ranging from 0.2% to 1.5%.
- Word of mouth marketing generates 5 times more sales than a paid media impression.
- 64% of marketing executives believe that word of mouth is the most effective marketing approach.
- 70% of respondents plan to increase their online word of mouth marketing expenditure, and 29% will boost their offline word of mouth marketing budget.
- 82% of marketers utilize word of mouth marketing to enhance their brand visibility, with 43% anticipating that word-of-mouth will enhance their direct sales.
- Word-of-mouth leads to $6 trillion in yearly global expenditure and contributes to 13% of all sales.
- Word-of-mouth is more effective than paid advertisements, resulting in five times more sales.
- 64% of marketers acknowledge that word-of-mouth is the most powerful marketing strategy.
- A majority of marketers (83%) employ word-of-mouth marketing because itboosts how well people know your brand.
- 43% of marketers use friends’ recommendations to increase how much they sell.
- Word-of-mouth marketing can result in 5 times more sales than using advertisements.
- The return on investment in influencer marketing is 11 times bigger compared to banner ads.
Facts about Word of Mouth Marketing for B2B
- When small businesses buy business software, 46% follow suggestions from colleagues and other companies in the same industry.
- 8% of B2B marketers believe that using word-of-mouth marketing can effectively promote live events for marketing purposes.
- Among businesses in the U.S., word-of-mouth marketing contributes to 48% of their best marketing techniques
- For small businesses that do affiliate marketing, word-of-mouth is one of the most significant sources of new customers.
- 20% of businesses plan to include word-of-mouth strategies in their yearly marketing plans.
- Many businesses learn about new artificial intelligence technologies from connections, networking, and observing how other companies utilize them.
- In the U.S., word-of-mouth marketing is one of the most effective marketing tools for 48% of businesses.
Insights on Word of Mouth Marketing and Brand Loyalty
- Bain & Co estimates that a 5% increase in customer retention can enhance a company’s profits by 75%.
- 65% of consumers have stopped using a brand due to a single bad experience, showing the importance of creating exceptional customer encounters.
- Brands that evoke strong emotions attract 3 times more word-of-mouth sharing compared to less emotionally engaging brands.
- 28% of consumers indicate that word-of-mouth plays a vital role in either strengthening or weakening their bond with a brand.
- 28% of people believe that word-of-mouth helps build a stronger connection to a brand (having shared values with a brand).
- Customers attracted through word of mouth tend to spend 200% more than an average customer.
- Brands that establish emotional connections attract three times more word-of-mouth referrals compared to those that don’t.
Insights on Word of Mouth Marketing and…Brand Discovery
- Millennials are 38% more likely to discover new brands through recommendations from friends and family.
- In Australia, 42% of people find new brands through search engines, and 38% through recommendations from friends and family.
- Generation X relies more on word-of-mouth for discovering products, with 18% regularly relying on this method.
- Generation Z, on the other hand, mostly discovers new products through other means than word-of-mouth.
Statistics on Word of Mouth Marketing and…Online vs. Offline
- 70% of marketers are aiming to increase their online word-of-mouth budgets, while 29% are focusing on offline strategies.
- When it comes to Amazon Prime Day in 2020, most consumers learned about it directly from Amazon’s website. Nonetheless, 17% were informed by friends and family.
- 23% of Singaporean shoppers made in-store purchases in 2019 based on friend recommendations.
- 37% of Americans decide where to eat based on word-of-mouth recommendations.
- Similarly, 31% of electronics purchases are strongly influenced by word-of-mouth referrals.
- 20% of North Americans who become aware of a product through word-of-mouth make an immediate purchase.
Statistics on Word of Mouth Marketing and…Dealing with Negative Feedback
- According to statistics on word-of-mouth marketing, 96% of displeased customers don’t talk to the company about a bad experience; instead, they share it with around 9-15 people.
- Approximately 13% of unsatisfied customers share their negative experiences with 20 people.
- In contrast, a satisfied customer typically tells only 3 individuals about their positive experience.
- an overwhelming 91% of dissatisfied customers willDo not purchase again from a company if you had a bad experience with them.
- It will require roughly 40 positive interactions with customers to counteract the effects of one negative review.
- Approximately 53% of customers expect brands to respond to negative reviews within a week.
- Only 1 out of 25 consumers will formally complain about their unpleasant encounter with the brand.
- Count around 40 positive customer exchanges to compensate for the harm caused by a single negative review.
- 96% of brands take a significant amount of time to respond to customers’ mentions on social media.
This article is part of our Martech statistics series, which gathers essential data and trends. Other topics include: