Reputation Marketing is the best social marketing for local businesses. Social media is increasingly becoming a central customer referral platform: according to Syncapse, up to 85% of fans of brands on the leading social networking site Facebook recommend the brands they follow to others. Furthermore, according to HubSpot, lead conversion rates are 13% higher on social media. In this landscape of social recommendations, consumer reviews and word of mouth are critical factors to local business success, especially with the growth of review sites like Yelp.
An effective Relationship Marketing Strategy aims to leverage the social aspect of consumer reviews and leverage these to the benefit of local businesses. Reputation marketing and management were originally concepts related to public relations, but digital developments on the web have shifted the concept to encompass social media and search engines. An Outbrain study found that search is the top driver of visitors to websites. Additionally, GroupM notes that when consumers are exposed to a brand through both social media and search, they are 94% more likely to click-through to the brand’s websites or links.
Good consumer reviews are proof of the excellent goods or services delivered by local businesses and the good relationship between them and their customers. This proof is the best form of social marketing available: social validation.
Social validation, more typically referred to as social proof in psychology, is simply put in Dr. Robert Chialdini’s book “Influence: The Psychology of Persuasion.” In the book, Chialdini says “When we are uncertain about what to do we will look to other people to guide us. And we do this automatically and unconsciously.” This concept is magnified manifold by social media on the web, where a single negative review can spell disastrous results for a local business. In fact, Harvard University looked into Yelp reviews and found that a 1-star difference in review scores can lead to a possible business loss of 5 to 9%.
Customer Relationship Marketing approaches reputation and relationship management for local businesses in a way that maximizes the potential of social media and consumer reviews. The business provides great service, the customers provide excellent reviews, and the business reputation is continuously built upon and marketed. The Leadership Lion blog is an up-to-date source of information on reputation marketing and reputation management. Visit the website at smartmarketingwizard.com