Word-of-mouth recommendations are the primary factors behind 20% to 50% of all consumer purchasing decisions, according to McKinsey Quarterly.
The influence of word of mouth is greatest when consumers are buying a product for the first time or when products are relatively expensive—factors that tend to make people conduct more research, seek more opinions, and deliberate longer than they otherwise would. Expect its influence to grow as the digital revolution transforms one-to-one communication to one-to-many, where consumers post product reviews online and social networks spread consumer opinions to thousands in seconds.
Understand three forms of word of mouth, the researchers point out:
How can you harness the potential of word of mouth and realize higher returns on your investments? Follow these tips: