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June 22, 2009 By Susan Barr Leave a Comment

Reputation Management: Are Negative Reviews Good for Business?

Great read this morning by Matt McGee at Small Business Search Marketing, “Five Ways Negative Reviews are Good for Business.” Matt suggests the benefits of negative feedback are:

They create trust.
They provide honest feedback.
They can improve your SEO.
They help you make better business decisions.
They offer a golden opportunity.

Matt’s post calls to mind statistics regarding growth in social media participation by consumers. According to Forrester Research Study (October 2008) on social media adoption, consumers who classify themselves as “critics” (those who contribute to ratings, reviews, blogs, etc) increased by almost 50% over the previous year to 37% of those surveyed. Anecdotally, I suspect the number has increased substantially since then. Many recent studies indicate that between 65 -80% of consumers search the web for local businesses and actively read reviews and ratings as part of their purchase consideration process. Consumers are adopting social media at increasing rates across all categories.

I agree with Matt McGee and recommend the following strategies given trends in consumer behavior:

1. Make engagement a standard part of your marketing plan. Develop a social marketing plan that encourages your customers to provide feedback. Include tactics as simple as asking a customers to complete surveys or as complex as creating a product information and rating system on your website. The truth is that most reviews are positive so encouraging engagement only serves to improve your online reputation and customer loyalty.

2. Develop a web presence on social platforms where your customers hang out. If your target customer is on Facebook, create a Fan Page and develop a plan to engage them there. If your customer is on LinkedIn or Myspace, engage them there.

3. Create a pro-active communications plan to address the customer feedback. I recommend my clients use a simple decision tree process. Include decision points to handle situations such as :

a. Customers with verifiable complaints
b. Competitors planting negative feedback
c. Customers with incomplete information or distorted versions of the truth
d. Customers with positive feedback

Matt McGee is correct in suggesting negative reviews provide an opportunity to improve your operations. The beauty of social technologies is that they place inexpensive tools into the hands of a small business owner to form a more personal customer relationship. The functions of these tools play right into the strengths of small businesses that are already heads and shoulders above large organizations in personalizing the customer experience. Responding to the negative feedback in a positive way demonstrates your commitment to the customer and your desire to improve their experience with your business.

Would you rather use negative feedback to improve your operations and service or lose a customer without knowing why?

Filed Under: Get Connected, Get Profits Tagged With: customer experience, Local Search, online reputation, small business technology, social marketing, social media

June 19, 2009 By Susan Barr Leave a Comment

Cheating the Customer?

After speaking recently at the SN4BW Online Global Training Event, I was asked if I recommend small businesses hire Virtual Assistants to respond to business tweets on Twitter. My initial reaction was a strong negative. I reasoned that outsourcing your social interaction on Twitter is equivalent to sending a secretary in your place to a cocktail party or a networking event to which you have been personally invited. The value and the beauty of social media as a marketing tool is that business participation in the media feels personal to the customer, makes the customer feel special and valued. I suggest that the use of “auto-tweets” while generally used for promotion and information, are not good practice for developing relationships or enhancing the value of your brand to a customer.

I tried to think of how and why you would want to outsource responses to your tweets if you are a small office/home office so I decided to consult with Carle Henry , CEO of Chrevian, Inc. and a TeleWeb Service Consultant. Carle is one of the first executives I worked with whose focus was on looking at the business from the outside in, viewing everything in the business from the perspective of the customer and then designing processes and systems around the customer’s perspective and needs. Carle has worked with companies like Harrods, Eddie Bauer, Monster.com, and Sealy to create multi-channel customer experiences. He pointed out several issues with the concept of having a VA respond to auto-tweets.

“The whole cache of social media, what makes it cool and clever is the personalization of the customer experience. My first reaction is that it is way too personal an interaction to outsource. Essentially, the challenge is that most cannot keep a VA knowledge base up to date for traditional inquiries. Once you apply this concept to the Social Media world, it’s as if you’ve put the somewhat acceptable flaws on steroids. The result will be an obvious, exaggerated ‘cheat’ on what should be an intimate, personal experience.” Carle went on to say, “The knowledge base is the most relevant point. If a customer gets a bad answer from a VA, they will search your website for a 1-800 number until they find a way to contact a real person to respond. In other words, customers who interact with you using twitter want a personal exchange: knowledge bases won’t cut it.”

Carle acknowledged he projects most customer service outsourcers of the future will include responding to Tweets (and some do already) from within large corporate customer service departments. The key to making it successful is to train the VA or outsourcing agency (with a long-term commitment in mind) in order to transfer relevant brand knowledge, product knowledge, and company culture and policy. Companies who do not properly train their outsourced service providers suffer the consequences of lost customers, reduced loyalty and brands with tarnished reputations. Some large brands such as Comcast are using Twitter and other social marketing tools to repair brand issues and poor customer service reputations.

If you are a small business, you have a natural desire to build your business with social marketing tools. But, if you are going to use tools such as Twitter, Facebook status updates and such to promote your business, think twice about the frequency and content of your status updates. Too much promotion comes across as Spam. So much self-promotion that you cannot respond to your own tweets is definitely Spam. Outsourcing your status updates and social marketing to a VA can be done ONLY if you have invested enough training so you trust the VA to represent your brand, your products, and your culture in a seamless way. Are your customer and your brand reputation worth the risk?

Filed Under: Get Connected, Get Customers! Tagged With: brand, business strategy, customer service, small business marketing, social marketing, social media marketing, social technology, twitter, Virtual Assistant

May 22, 2009 By Susan Barr Leave a Comment

Is your Brand Boring?

In my last blog post, I talked about how many social media efforts fail to bring profit because the small business does not ask the customers how and where they want to engage with their brand. Does your customer want to be a part of a community? A Facebook page? A blog? A Twitter follower? What is in it for them to engage with your business on one of those platforms?

Check out this blog post from Josh Bernoff of Forrester Research that I ran across this morning. It suggests your social marketing strategy must consider whether your brand is a “boring” brand or a”talkable” brand. Combining your knowledge of the type of brand along with the customer’s engagement requirements leads you to a better social media mix for your business.

For those who are developing a social marketing strategy for your small business, I highly recommend you subscribe to Josh’s blog. I further recommend you read “groundswell” by Josh Bernoff and Charlene Li. The book gives a great overview of social technologies, statistics, and case studies of companies who are winning the social marketing game. The case studies are primarily for larger companies and brands but you are certain to find great inspiration for implementing social marketing programs in your business.

Filed Under: Get Customers!, Innovate!, Strategic Thinking Tagged With: small business marketing, small business technology, social marketing, social media, social media marketing, strategic planning

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