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9 Compelling Referral Marketing Statistics You Need To Know

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According to the Word of Mouth Marketing Association (WOMMA), there are more than 2.4 billion brand-related conversations everyday in the United States. Sharing is an innate human trait, and people are always interested in talking about their favorite products/services.

Leveraging word-of-mouth is one of the best marketing decisions you can make. Referred customers are more loyal, less likely to churn, and are a cost-effective way to sustainably grow your business.

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Here are some incredible numbers that show the power of referral marketing:

 Image via Deloitte

  1. People who were referred by their friends are 4x more likely to make a purchase (Nielson)
  2. 84% of consumers trust the recommendations of others over other forms of marketing (Nielson)
  3. The lifetime value of a referred customer is 16% higher compared to a customer who wasn’t referred (Wharton)
  4. The churn rate of referred customers is 18% lower than other channels (Wharton)
  5. Referred customers generate 16% more in profit than non-referred customers (Harvard Business Review)
  6. 92% of consumers trust referrals from people they know (Nielson)
  7. People are 2-10x more likely to rely on word-of-mouth than paid media (Boston Consulting Group)
  8. Referred customers have a 37% higher retention rate (Deloitte)
  9. Word of mouth generates more than twice the sales of paid advertising in some industries (McKinsey & Co)
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Image via Deloitte

 

If you aren’t currently leveraging word-of-mouth marketing, you could just be sitting atop a large potential of missed growth opportunities.

“This article first appeared on GrowSurf.com