71% of consumers define word of mouth as IRL recommendations
While those on social media with large followings can make a persuasive case for purchasing products and services, 46 per cent said word of mouth from family and friends represents the biggest influence on their spending, according to research published by 5WPR.
The New York-based public relations firm commissioned a survey of more than 2,000 American shoppers to produce its 2024 Consumer Culture Report. This represents the fifth edition of the research.
While the rise of digital channels could blur the traditional way we describe “word of mouth,” 5WPR found the majority continue to see it as product recommendations they get from people in real life (IRL). In fact, social media ranked third in the definition of word of mouth, following customer testimonials or reviews.
In terms of what actually converts them into buyers, social media was cited by only 16 per cent of those surveyed. Another significant source was coverage in the media, according to more than a quarter of consumers.
“The best way for brands to convince consumers to purchase from them is by sharing the genuine experiences of customers just
like them,” the report’s authors wrote. “Consumers become less likely to equate information about products and services with word of mouth the further removed from them the source becomes . . .
“This may be because as sources’ fame grows, consumers assume they will have been paid by brands to promote products and services, therefore making the information provided less impartial, perhaps even less trustworthy.”
360 Magazine Insight
The 5WPR report notes there are differences in outlook around word of mouth when you break down the findings by demographics. Not surprisingly, it’s the youngest cohort that sees social media as word of mouth. Still, the research suggests it’s important videos or posts recommending products find their way organically into consumers’ feeds rather than paid promotions.
Customer experience (CX) professionals sometimes neglect word of mouth as a goal or metric compared with going after an increase in customer satisfaction (CSAT) or a boost in their brand’s Net Promoter Score (NPS). Those latter metrics may be easier to track, but the 5WPR suggests there could be considerable value in using Voice of the Customer (VoC) surveys and other feedback tools to ask your audience how often their IRL network has talked about or recommended your brand.
The research also noted that three out of 10 consumers see shopping as a social activity they enjoy with friends and family. Couple that with the 39 per cent who said they prefer to items in store and it’s clear that brands should be designing experiences with groups of shoppers, rather than solo consumers, in mind.
Though this report is relatively short at just seven pages, it packs in some valuable insights in a range of areas. This includes how consumers are reacting to periods of high inflation, and what kind of product categories are considered “splurge-worthy” despite the economic turbulence they’re going through.
