The culture of participatory social media is having some surprisingly significant effects on both the way satisfied customers play a role in contributing to the marketing message development of products and services. And it is also playing an increasingly important role in defining the key touchpoints that customers use in the deciding factors one what to purchase. What makes this all the more noteworthy is that much of this is rooted in offline purchases. I’m putting this together from two recent studies…

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I keep on trying to legitimize the reasons that Facebook is using to justify their new marketing program, “Facebook Beacon”. But it’s just not happening. It keeps on coming back to user relationships, user privacy, and user benefit. You know, the USER.

If you’re not sure what Beacon is, it’s basically this. Facebook is setting up agreements with online retailers that aren’t part of Facebook to have the retailer directly send information of what people buy on the retailer site to their “friends” on Facebook. The user is first supposed to see a notice on the retail site for which they need to give the thumbs down if they object. So the system is supposed to be opt out. But there’s been some circumstances where the information is just automatically sent without approval or even notification of the buyer. That means the next time you buy a book from Amazon or an item from Overstock.com, the retailer could end up letting your friends know what you bought unless you explicitly stop it.

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This morning I read two important posts written by Greg Sterling on his blog Screenwerk. One is Nielsen - WebVisible Data on Local Search. The other is New Findings on SMBs and User Reviews. It left me more and more convinced how local businesses must view the internet as a marketing and business development source, and as a customer relations and reputation management tool.

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Check out the article in last Thursday’s Times, Dealing With the Damage From Online Critics, that addresses how to handle consumers who develop a personal vendetta against your company. Well, you could send lawyers but legal cease-and-desists generally just make the customer madder than hell and it isn’t hard to just start yet another attack site.

I hate to say it, sucking less always helps. Start with treating your customers better. Also, be sure to register lots of domain names and work on your online reputation aggressively before it becomes a problem.

Online, the best defense is a good offense and an ounce of online promotion is worth a pound of cure. Here are some great commented-by-me excerpts from the article, Dealing With the Damage From Online Critics, so you can get a gist:

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