Even as a small business owner, your relationship with your customer base is changing so quickly it’s hard to stay one step ahead.  Web 2.0 (blogs, social networks, ratings & reviews, etc.) is dramatically changing the way your prospects are researching their purchase options.

It’s no longer enough to pretend you operate in a closed loop with your customers and prospects: while you can start a dialogue online or over the phone, your prospects have a wide range of options at their fingertips to better assess your value as a potential supplier or retailer. In nearly real time, they can get an instant read on how other customers feel about your products and services. As a result, they are becoming less and less likely to make rash purchase decisions based on limited information. Today’s online customers are simply more informed than ever, and in a better position to make intelligent, heavily researched decisions.

This new online reality can work for or against you. The question is, are you doing everything you can to facilitate the research process, or are you struggling to control your prospects’ perception about your company and your products or services? Here’s a quick checklist you can use to assess where you are on the Web 2.0 curve:

1. Do you go the extra mile to provide extensive product/service information on your website, including case studies, customer comments, etc.?
2. Do you encourage your prospects to check out independent “Ratings & Review” websites so they can better assess your offering?
3. Have you implemented (or considered implementing) a rating/review system on your website to help guide more informed customer purchase decisions?
4. Are you tracking what the online universe is saying about you? Are you reading your industry’s blogs and online forums?
5. Do you make changes to your products/services based on negative feedback you’ve received from customers (either directly or via online forums and ratings/reviews websites)?

If you answered “no” to more than three of these questions, BizAssist recommends that you invest greater energy in building a Web 2.0 relationship with your existing customer and prospect base. While opening the kimono in front of your customers can be a daunting proposition, it demonstrates both your awareness of how customers have changed their purchase habits and that you’re invested in building a relationship built on trust. As a small business owner, trust is fundamental to the way you do business – Web 2.0 tools and technologies are best utilized to extend that level of trust into the online world. Here’s how.

Step One – Get Informed

There’s simply no excuse for not knowing what your online customers are saying about you. A quick search will take you directly to any online blogs or forums, and help you quickly locate popular Ratings & Review websites. Do an inventory and compile a list of five low-impact things you can do to change what your customers and prospects are saying about you. These lessons will help you build a better online shopping experience, source better products or make changes to the service packages you offer – the list is endless, but choose actionable changes you can implement to see incremental improvements.

Step Two – Make Sure Customers Can Find You Online

Remember, you want your prospects and customers to be talking about you. That comes with the risk of negative reviews, but if you’re committed to delivering value to your customers you will invariably see that translate into online referrals. If prospects and customers can’t find you online, or aren’t seeing your name mentioned in online communities, you’ve got a problem on your hands. Make sure you have a search marketing strategy in place, and start thinking about ways to encourage your satisfied customers to share their experience with online peers.

Step Three – Enter the Dialogue

So you’ve found a negative review of your product online and you have the opportunity to share your point of view.  What should you do? First off, don’t take it personally: a negative review is an opportunity to transform a customer relationship. It might be tempting to refute the feedback, but your goal is not to permanently alienate your customers. Don’t assume that a negative review means they will never buy from you again. Thank your customer for taking the time to share their experiences, and offer to help change that experience into a positive one.

While this scratches the surface of marketing to customers in a Web 2.0 world, by better understanding how you can utilize Web 2.0 tools to build trust you’ll take positive steps toward more profitable online customer relationships.