Special post to the SBDC National Blog by Christine Adolf of Brownbook.net

Whenever we are looking for a new product or service, we generally ask our friends and family for recommendations. We trust that our social network will give us their honest opinion and that they are not being paid to endorse a certain product or service. Consumers place a higher level of trust in word of mouth marketing than they do in other promotional activities such as ads because they don’t see it as a marketing activity, but as a recommendation from a personal connection they trust.

With the internet enabling word of mouth to travel faster, farther and to a greater number of people it is crucial that small businesses understand the importance of creating positive buzz for their business online. How can small businesses use word of mouth marketing to reach potential customers? There are several things small businesses can do to leverage the voice of their satisfied customers online. Here are a few things you can do to engage customers and utilize in word of mouth marketing online.

• Use Social Networking Sites

  While it is easy to become overwhelmed by the number of different social networks out there today, they provide a huge opportunity for small businesses to create free buzz online. It is not necessary to join every social networking site, but popular and easy to use sites such as Facebook, Flickr and YouTube can help you to interact with your customers and spark a conversation online about your product or service.

• List your business in online directories

  It goes without saying that in order for people to buy what you are selling, whether a product or service, they need to know it exists. Online business directories are a great way to have an online presence and to provide potential customers with your contact information and a description of your business. At Brownbook.net, you can list your business for free and increase awareness of your company whether it is a restaurant or a dog walking service.

• Listen to your customers and respond when appropriate

  There are many tools available that facilitate tracking what your customers are saying on the internet about you and your industry. Google Alerts is one of my favorites because it is easy to use and allows you to track mentions of your company and related keywords from both websites and blogs. One of the simplest and most important things you can do is listen because you will gain valuable insight that will help you better serve your customers.

• Solicit customer feedback online

  If your company has a website, make it easy for customers to provide their feedback, preferably in a public forum such as a company blog. Even if you do not have a website or blog for your business, urge customers to write reviews on third party websites. While you might worry that negative comments will surface, you get the opportunity to transform an unhappy customer into an advocate for your business.

Creating and encouraging word of mouth marketing online can accelerate business growth and create awareness of your company in an internet age, even if your company does not have its own online presence in the form of a website or blog. According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study’s respondents. (Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”) Clearly, word of mouth marketing is an important marketing tool for small businesses.