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