The Hidden Threat most businesses rely on referrals. Statistically speaking, 82% of small businesses rely on word of mouth referrals as their main source of new business. When we speak to businesses, it seems like more than 95% of them rely on referrals.
If you rely on other people mom database talking about your business, pat yourself on the back. You care about your business. You’re doing a good job. If you’re relying on that as your stream of income, your profit, the money you bring home for yourself, your family, etc., that means you have faith in yourself and your business.
And good things should come from that.
Word-of-Mouth Referrals: Key Stats and Insights
Why do we love word-of-mouth referrals so much? If you look it up online, you’ll find a flood of data that supports our love for referrals!
According to techreport. The site even has a form that visitors can fill out com, 92% of consumers trust word-of-mouth recommendations over advertising.
83% of consumers say they are willing to refer your business after a positive experience.
Referrals drive sales 5X… even as much as 100 times more than otherwise!
McKinsey, a huge consulting firm, says it’s the primary factor behind 20-50% of all purchasing decisions.
A sampling of Other stats (that you can easily find online):
- 49% of U.S. Shoppers Discover Brands Through Family and Friends (Miller, n.d.)
- A Single Happy Customer Can Yield Nine Referrals (Source: Oberlo)
- Referral Leads Boast a 30% Higher Conversion Rate (Source: Finances Online)
Word-of-Mouth Referrals: Essential for Your Business’ Survival
The Hidden Threat clearly, it is crucial that you care and continue getting those word-of-mouth referrals. But did you know that most businesses are losing word-of-mouth referrals, and they don’t even know it?
When you think lob directory about it- how would they know?
If I hear about a business, I’m likely hearing it. Like actually hearing it verbally…I’m not getting a business card or the cell phone number of the business owner.
Picture this- you decide on a new restaurant when you’re visiting a town that you don’t live in, you have done all your research/got that word of mouth referral. Now you want to go there. You’re going to order takeout or you’re going to sit down with your friends or your family. BUT- you show up and they’re not open. Or worse, they’re not even there.