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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Here’s an amazing statistic:  a full 57% of marketing executives recently responded with the following answer to the question if their firm has a crisis response communication plan:  NO.  What makes it more amazing is that in the same survey, 53% said that their business had experienced a crisis in the past…one that resulted in a loss in sales, a reduction in profits, or negative press.  A majority of that 53% say that the recovery period took a year a more.  Only one-half have trained spokespeople.  And it shouldn’t go unnoticed that there’s an overlap of 4% here of companies that have suffered a crisis in the recent past but have yet to install a plan to address future crises.

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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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All businesses should put some time and energy into reaching out to online influencers. The Wall Street Journal Weekend has a great article, The Price of a Four-Star Rating, on how restaurants, cafes, and bars can do a little face-to-face blogger outreach and engagement to great effect: dominating and pwning their reviews on Yelp!

Last August, Dine spent about $1,500 on an event for members of Yelp, a Web site where consumers post reviews and rate restaurants. The nearly 100 members were treated to an open bar, duck roulade appetizers and red velvet cupcakes for dessert. As a bonus, they all received certificates for discounts on subsequent meals. The result: a torrent of favorable reviews on Yelp. Most reviewers mentioned that they attended a Yelp event, though few highlighted that the food and drink was free.

$1,500 is peanuts, even for a small business, when the outcome can result in a 4-star rating — and it can be much much less — or much more luxurious, too! Additionally, the more folks who review you on sites like Yelp, the less likely that any one particular post will gut your reputation for all to see.

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