Are you converting your referrals to customers?

This article first appeared on LinkedIn Pulse on December 11, 2015.  The original article can be found here.

Referrals are the lifeblood of any business. You do business with people you trust. You will also do business with companies who have earned the trust of your family, friends and colleagues.  Your best source of marketing is your satisfied customers and their "word of mouth" recommendations and referrals they provide.  So what has changed?

Consumers have adopted a new trend when the are searching for products or services they need. They still seek the advice and recommendations from people they trust. They all love to have choice in their lives and will most likely seek two or three options from their network. The next step is the one that many businesses need to understand. Consumers will take the three referrals and conduct additional research online. If your online prominence and level of authority is less than your other two competitors, who do you think will be contacted?  Definitely not you. The added danger for businesses is they will not be aware of the lost customers because they never received a phone call or visit from the customer in the first place.  All they see are less calls and contact from new customers.

Consumers have a new powerful tool at their disposal.  They have the internet. They can quickly research their choice of vendors. What the see online as a result of their research will greatly influence who they select to contact. If your company looks inferior to your competition, you will most likely  not be contacted. Word of mouth as it was ten years ago is different today.  The internet is the new "word of mouth".

What do consumers look for during their online research?

Consumers are now very sophisticated and have a wealth of information they can access. Here are seven influencing factors you need to address as a business:

• An up to date website. Does your site look like it was built in the 1990's? If it does, it is time for a makeover.
  
  
• Is your website mobile friendly? Smart phones pack  a lot of power in a small device. Consumers are mobile and know how to use that power. Does your company show well on a smartphone?
  
  
• Visible online testimonials. Recent online marketing reports indicate consumers are placing more trust in online testimonials than in the past. Do you have testimonials on your website and social media properties such as Facebook, Google+ and Google My Business? Are you actively pursuing testimonials from your customers?
  
  
• An active social media presence. Reports are also indicating consumers now place more emphasis on a vendor's social media presence and the degree of activity and engagement. Is your social media page quiet? When was the lat update created?
  
  
• Case studies and white papers. Consumers like to be informed and educated. Having content in the form of case studies and white papers raises the level of your authority in your market. Consumers are attracted to industry thought leaders.
  
  
• Membership to industry and local business associations. Belonging to your industry association, the BBB or the local Chamber of Commerce provides a level of trust that you are established in the local community that of your industry.
  
  
• Is your content easily found online? If someone types your name or that of your company into the search engine, what are the results? Is your content properly optimized and indexed by the search engines? Is your content consistent and current?

While your company may provide an excellent service and product, how you look on the internet compared to your competition is vital. Consumers are researching you online more often than you are aware. A lack luster image and presence will not do you any favours and not generate any contact from a potential new customer.

There are three things you need to do.

1. Go to Google.com and google your name or that of your company. Take a look at the results.  Are you pleased with what you see. (Be critical in your assessment.) Document what you like and what you think can be improved.
   
   
2. Next go back to Google.com and google the names of your top three competitors. Take a look at what you see. What do you like? Where to you look more prominent or authoritative? Document your findings.
   
   
3. Put yourself in the shoes of a potential customer. Seeing the results from your search and that of your competition, who would you call? If you would call your competition, then it is time to do something about your online presence, authority and brand.
   
   

Sometimes a comparative analysis such as this can open your eyes and propel you into taking positive steps towards improving your online status and appeal.

About the Author:   M.J. Plebon is an online marketing specialist who operates his marketing agency out of Montreal and Fort Lauderdale Florida. He also teaches social media and effective public speaking at Concordia University and online marketing at Champlain College's Continuing Education Department. He is an article contributor to "Small Business Trendsetters" and "BusinessInnovators.com, US based online business magazines.