In the most recent McKinsey Quarterly, there is an article with updated statistics about the value of word of mouth advertising as seen in the photo above.
…word of mouth1 is the primary factor behind 20 to 50 percent of all purchasing decisions. Its influence 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. And its influence will probably grow: the digital revolution has amplified and accelerated its reach to the point where word of mouth is no longer an act of intimate, one-on-one communication. Today, it also operates on a one-to-many basis: product reviews are posted online and opinions disseminated through social networks. Some customers even create Web sites or blogs to praise or punish brands.
You can see from the statistics that social media is playing a large role in helping people decide what to buy. It is also an important way for buyers to learn about new products, services, websites and companies. People buy from those they like and trust and they trust the friends they follow on Twitter and Facebook.
Have you begun to embrace social media as part of your strategy to connect with potential customers? If so, you may want to consider having a policy for social media to establish the ground rules for corporate participation of your associates.
Need help determining how to get started and create a strategy? I can help. Give me a call. 330-414-8792.
To read the entire article you will have to sign up for the free account but their articles are worth the time it takes to fill out the form. Here is the link to the complete article called A New Way to Measure Word of Mouth advertising