According to the Word of Mouth Marketing Association (WOMMA), there are more than 2.4 billion brand-related conversations every day 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.
Here are some incredible numbers that show the power of referral marketing:
- People who were referred by their friends are 4x more likely to make a purchase (Nielson)
- 84% of consumers trust the recommendations of others over other forms of marketing (Nielson)
- The lifetime value of a referred customer is 16% higher compared to a customer who wasn’t referred (Wharton)
- The churn rate of referred customers is 18% lower than other channels (Wharton)
- Referred customers generate 16% more in profit than non-referred customers (Harvard Business Review)
- 92% of consumers trust referrals from people they know (Nielson)
- People are 2-10x more likely to rely on word-of-mouth than paid media (Boston Consulting Group)
- Referred customers have a 37% higher retention rate (Deloitte)
- Word of mouth generates more than twice the sales of paid advertising in some industries (McKinsey & Co)
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.
See also, ‘The Essentials to Build Thought Leadership as a Business Leader“
Read this interesting piece of content about Business Promotion Strategy
“This article first appeared on GrowSurf.com”