Word of mouth is hardly a new concept; as the original social media it has been around since the dawn of communication. However, in today’s digital age it has taken on new life. With the advent of the Internet and the increasing power and importance of social media platforms, conversations and engagement are traveling at unprecedented speeds. Through tweets, Facebook posts, blogs, reviews, WOM travels around the web (and around the world) at supersonic speeds.
It’s a new and improved style of WOM, and it’s driving billions of dollars of sales each year. It’s no longer something that companies can afford to leave up to chance. Rather, they must actively incorporate it into their marketing strategy or risk being left in the dust.
Still need some convincing? We’ve compiled these essential stats you need to know about word of mouth marketing and why it shouldn’t be ignored.
People Actively Seek Out Word of Mouth
- Word of mouth is the primary factor behind 20% to 50% of all purchasing decisions. (McKinsey & Co.) [tweetthis url=”http://bit.ly/1NetXBQ” twitter_handles=”@Insightpool”]”Word of mouth is the primary factor behind 20% to 50% of all purchasing decisions.”[/tweetthis]
- 92% of consumers trust recommendations from other people—even if they don’t know them personally—over promotional content that comes directly from brands. (Nielsen)
- 77% of consumers are more likely to buy a new product when learning about it from friends or family. (Nielsen)
- 81% of people said they’re influenced by what their friends share on social media. (Market Force)
- 49% of U.S. consumers say friends and family are their top sources of brand awareness, up from 43% in 2009. (Jack Morton)
- 43% of consumers are more likely to buy a new product when learning about it on social media. (Nielsen)
- 81% of U.S. online consumers’ purchase decisions are influenced by their friends’ social media posts versus 78% who are influenced by the posts of the brands they follow on social media. (Market Force)
- 68% trust online opinions from other consumers, which is up 7% from 2007 and places online opinions as the third most trusted source of product information. (Nielsen)
- 72% say reading a positive customer reviews increase their trust in the business; it takes reading between 2-6 reviews to get 56% of them to this point. (BrightLocal)
- 84% of consumers reported always or sometimes taking action based on personal recommendations. 70% said they did the same of online consumer opinions. (Nielsen)
Word of Mouth Has Proven Value
- 85% of fans of brands on Facebook recommend brands to others. (Syncapse)
- Brands that inspire a higher emotional intensity receive 3x as much WOM as less emotionally-connected brands. (Keller Fay Group)
- Consumers sharing a brand’s message generated more than double the sales that resulted from paid advertising. (McKinsey & Co.)
- Brands that leverage social influencers to spread their message are seeing up to a 10X increase in conversion rates. (Content Marketing Institute) [tweetthis url=”http://bit.ly/1NetXBQ” twitter_handles=”@Insightpool”]”Social influencers can create up to a 10X increase in conversion rates.”[/tweetthis]
- Customers who were acquired through social influencer efforts have a 37% higher retention rate. (Forbes)
- Research shows that a small number of active influencers accounted for a disproportionate share of total recommendations. (McKinsey & Co.)
- When specific case studies were analyzed, researchers found a 10% increase of WOM (off and online) translated into a sales lifts between 0.2 – 1.5%. (MarketShare)
Marketers Are Taking Notice (So You Should Too)
- 64% of survey respondents mostly or completely agree that WOMM is more effective than traditional marketing. (WOMMA)
- 70% of respondents are planning to increase their online WOMM spend, and 29% will increase their offline WOMM spend. (WOMMA)
- 82% use WOMM to increase their brand awareness, but 43% expect WOMM to improve their direct sales. (WOMMA) [tweetthis url=”http://bit.ly/1NetXBQ” twitter_handles=”@Insightpool”]”43% of marketers expect WOMM to improve their direct sales.”[/tweetthis]
With numbers like these, it’s pretty obvious that WOM isn’t something to ignore. For tips on how to become a word of mouth marketing master, be sure to check out Insightpool’s eBook The 6 Steps to Mastering Word of Mouth Marketing. Curious to see how your word of mouth marketing efforts stack up? Request your WOM score from Insightpool today!