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Checkout this article that appeared online recently:
July 2, 2013, by Sarah Marshall
Over 500,000 American businesses dying an avoidable death
Experts today have claimed that over half a million small to medium businesses across the USA face a threat to their survival because of a weak connection with their market.
George Santos from social reputation management firm Big Boys Online stands by his estimate of half-million businesses, but claims the real number of at-risk businesses to be a lot higher, mainly due to the growing irrelevance of small time operators that are increasingly having their markets swallowed and wiped out by larger nationwide competitors. “One of the things that small businesses have in their favor today as much as they’ve ever had is their personal touch, and their innate ability to treat each customer or client personally and uniquely, rather than the big-company feel that consumers have grown used to”, said Mr Santos.
But, the failure of small business to act on their built-in advantage is making the job of their competitors much easier says Mr Santos; “A perfect example is a small 4-person lawn and garden care business in Houston I worked with a few months ago. They have a raving fan base of customers, many of whom had been using their services for over 10 years, but because those customers didn’t have a place to connect online to share their genuine and glowing testimonials, it made it hard for new potential customers to hear those stories. As a result, that particular small business was fast losing their local market to a large nationwide franchise that had started up recently and was doing heavy advertising”.
The turnaround of this downward death spiral is simpler, cheaper, and faster than business owners might think, says Mr Santos. “Simply by putting online a Facebook page for this business, and by inviting their long-time customers to ‘like’ the page, and in doing so to share it with their friends, that small-time Houston lawn and garden business was able to grow by over 30% that year – which for a 12 year old company is a big deal, and all without spending a cent on advertising”.
According to those new customers, their decision was made easy when they found the Facebook page, and saw that the business had over 500 ‘likes’. “People tend to trust a recommendation infinitely more than they trust advertising or marketing, even if that recommendation comes from a stranger. To have 500+ likes is really the same as having 500+ recommendations, and 500+ recommendations is worth more than any amount of flyers or newspaper advertisements”, says Mr Santos.
If this tale of small business success is anything to go by, business owners right across the country might just have more low-cost or free marketing ammunition in their armory than they presently know what to do with.