By Kate Kelly and Sadie Ray
Personal recommendations and consumer opinions posted online are the most trusted form of advertising. While the survey was done globally, the results should really be a wake up call for small business owners.
Consider this stat: 90% of internet consumers worldwide trust recommendations from people they know, while 70% trust consumer opinions posted online.*
Why is this especially pertinent for small business operators? National companies generally have the benefit of large media budgets used to create perceptions about their company and build brand equity. Anyone who has taken Marketing 101 has heard the classic examples-Volvo’s brand is associated with safety while the Mini Cooper is associated with fun, for example. The perception created through brand marketing builds confidence with the consumer that the product or services offered are trustworthy.
The majority of small businesses don’t have a wealth of brand equity, even in their local market. As a potential customer searches for the products and services provided by a small business, they rely heavily on other people’s opinions to give them the confidence they need before performing a transaction. A good example is the opening of a new restaurant in town. A fictitious Joe may not want to risk his date night money on a new, unproven restaurant. However, once Joe’s neighbor gives her stamp of approval, Joe’s confidence is strengthened and his risk aversion decreases. If you want to learn more information about Customer Reviews click here ereviewcenter.com
