<p>At Feefo, we believe that every business no matter what size they are deserve to be supported to make the right decisions for their business and their customers. In this article, we’re looking at the world of small businesses – in the US and UK. What we will discuss is:</p><ul><li>What makes up a small business</li><li>The problems they face</li><li>Marketing strategies for small businesses</li><li>And how Feefo can support them during Small Business Week and the other 51 weeks of the year too.</li></ul><p></p><p>No matter which side of the Atlantic you live on or what you do, small businesses will have played a vital part in your life - directly and indirectly.</p><p></p><p>You probably use a small business several times a week or even daily. They help provide jobs and support consumer spending. Without them, both the UK and US economies would have serious problems. Even though they’re individually ‘small’, the contribution they make to each economy is anything but.</p><p></p><h2>What constitutes a small business</h2><p>The definitions of what makes a small business in the UK and in the US are quite different. The UK government defines a small business as one with less than 50 employees and a turnover of less than £10 million. In the US, as with so many things, small businesses are bigger – with the Small Business Administration’s general definition being fewer than 500 employees. Another measure they use is a maximum turnover of $41.5 million. These US figures do change, though, depending on the industry in question.</p><p></p><p>With such big differences in the way small businesses are classified, it’s difficult to make meaningful direct comparisons between each country. So, let’s look at how they impact each of their economies separately.</p><p></p><p>In the UK, there are around 217,000 small businesses. And while this means they’re only 4% of the total number of firms in the country, they employ 16% of the working population. And they generate 15% of the country’s total business turnover.</p><p></p><p>Small businesses in the US account for a huge 44% of the country’s economic activity. They’re also responsible for over 60% of jobs in America.</p><p></p><h2>The issues facing small businesses today</h2><p>The covid pandemic and the global economic problems caused by the war in Ukraine have had a significant impact on small businesses worldwide and added to the day-to-day problems they encounter.</p><p></p><h3>Rising cost and falling spending</h3><p>Inflation is the main problem for small businesses at the time of writing. They’re facing rising supplier costs and reduced customer spending in a double whammy for business owners.</p><h4>How Feefo can help</h4><p>We can’t do anything to cut the rising costs small businesses face. But verified reviews do help alleviate consumer anxiety when it comes to parting with their cash.</p><p></p><p>Using a platform like Feefo that collects genuine reviews from real customers establishes your business as one that people can believe in – especially important if you’re a small brand. Current customers will feel reassured they’ve made the right choice in picking you. And new prospects will feel confident to shop with you.</p>

Digital Marketing Coordinator, Medical Monks 

<h3>Revenue and cash flow</h3><p>In the small business world, healthy revenue and consistent cash flow are vital, and even a small interruption can be fatal for some companies. With consumer confidence and spending hit, many businesses are seeing revenues fall and becoming less profitable. To overcome this, they have to choose between passing increased costs on to customers or cutting their profit margins further.</p><h4>How Feefo can help</h4><p>Displaying verified reviews can drive <a href="https://www.feefo.com/uk/business/resources/customer-acquisition/customer-acquisition-guide" target="_self">customer acquisition</a>, revenue and cash flow.</p><p>When customers leave positive reviews, studies have shown online sales can be boosted by <a href="https://www.dixa.com/page/reconnecting-the-customer-experience/" target="_self">up to 18%.</a> Reviews are also one of the biggest influences on customers’ buying decisions, with up to <a href="https://www.brightlocal.com/research/local-consumer-review-survey-2017/" target="_blank">85% of consumers trusting online reviews</a> as much as they do personal recommendations. That’s great news for small or niche brands that people might find hard to get any personal recommendations on.</p><p>Reviews of individual products have been shown to increase sales by up to 200% better than those without too.</p><p>Our reviews can help improve your performance in search results and <a href="https://www.feefo.com/uk/business/resources/customer-experience/google-reviews" target="_self">generate Google stars</a> to make you rank above bigger competitors with larger budgets. Adding our reviews to your adverts can <a href="https://blog.reviews.io/post/how-online-reviews-impact-click-through-rate" target="_self">triple click-through rates</a>. Simply displaying reviews can <a href="https://spiegel.medill.northwestern.edu/wp-content/uploads/sites/2/2021/04/Spiegel_Online-Review_eBook_Jun2017_FINAL.pdf" target="_blank">increase conversions by 270%</a>. </p><p>With companies, especially smaller ones, having to look closely at their marketing and new business budgets, reviews are a proven way to keep cash flowing.</p>

Digital Marketing Manager, Impact Factory

<h3>Improving your products, service and keeping customers loyal</h3><p>If you don’t know someone has had an issue with your products or service, you can’t put things right and you may lose their custom. The same problem could go on impacting others too. Before you know it, your loyal customer base could have shrunk considerably.</p><h4>How Feefo can help</h4><p>A verified customer review platform lets you hear the voice of your customers. It gives them an easy way to let you know what they think and when they feel let down. When you <a href="https://www.feefo.com/uk/business/features/respond-to-reviews" target="_self">proactively respond to a review</a>, especially if things haven’t gone perfectly, it shows that you’re committed to providing excellent customer service. In fact, <a href="https://www.qualtrics.com/blog/online-review-stats/" target="_self">89% of consumers</a> pay as much attention to the reply to a review as they do to the review itself.</p><p>Having both positive and negative reviews on your website actually increases trust too. Consumers obviously feel a brand that gets just glowing feedback is too good to be true. Because our reviews are from verified customers, you can relax knowing there are no fakes in there.</p><h3>Planning ahead</h3><p>Just the day to day running of a small business is a full-time job. So, getting the time to even think about taking it to the next level can be difficult to say the least. And you need that genuine insight to base your plans on.</p><h4>How Feefo can help</h4><p>Listening to feedback and our AI technology gives you access to insights that help you identify opportunities, spot trends, and get better at everything you do. They’re always there as well for when you need them so you can make quick decisions if you have to.</p>

Director, Harris & Jones

<h3>Establishing your sustainability claims</h3><p>Consumers expect businesses to act on sustainability - even small ones. Staff too are actively seeking out companies that take sustainability seriously. With greenwashing rife though, people don’t automatically trust claims made by brands.</p><h4>How Feefo can help</h4><p>Depending on your business model and how you operate this can be a great way to differentiate yourself from the competition – especially the ‘big boys’ that might have other reputational issues. We’ve designed our <a href="https://www.feefo.com/uk/business/features/sustainability-awareness-solution/ecolabels" target="_self">Sustainability Awareness Solution</a> to help you demonstrate your independently verified sustainability claims. Based on the <a href="https://www.feefo.com/uk/business/resources/business-insights/united-nations-sustainable-development-goals">United Nations Sustainable Development Goals</a>, which cover a wide range of sustainable activities, it can be a real game-changer.</p><p></p>

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<h2>What is Brand Advocacy?</h2><p>Advocacy is the act of promoting or supporting a cause or idea. An advocate can be an individual or an organisation that works on behalf of another to promote their interests and get their voice heard.</p><p>For businesses, advocacy is promoting a brand, product, or service through word-of-mouth marketing. Advocates are usually customers who are passionate about a brand - both positively and negatively - and are willing to share their experiences with others. </p><p>When it comes to brand advocacy, there are several stages a customer needs to go through before they become an advocate, and it is essential to bear this in mind.</p><p></p><figure style="text-align: center"><div data-img-caption-container="true" style="display: inline-block; text-align: center;"><img src="https://eu-images.contentstack.com/v3/assets/bltc0d0a8caf49440b8/bltbeb0130b1798c65a/656f02b75722dc04076c7126/image.png" height="auto" style="text-align: center;" /></div></figure><p></p>

<p>At its simplest, the loyalty ladder theory is that as a brand exceeds customer expectations at every interaction, a customer will move up the ladder — gradually becoming more loyal and engaged.</p><p>It forms the basis of customer loyalty strategies, such as reward programmes, and customer retention communications, such as newsletters and information about special offers or new products or services. Advocates are at the top of the ladder as the most engaged and loyal customers a brand can have.</p><p>Feefo CEO, Tony Wheble agrees: "Loyal and satisfied customers are your biggest advocates. Peer recommendation from advocates carries more weight than any other form of advertising. Their genuine and authentic reviews lead prospective customers to trust the brand they advocate for."</p><p>You can learn more about this in our Power of Advocacy report, which looks further into how to turn customers into loyal advocates and measure customer loyalty throughout the ladder.</p><h2>Types of Brand Advocates</h2><p>Customer referrals are the most common type of brand advocate.</p><p>Organic customer referrals are precious as they don't cost anything to acquire but are highly effective. A <a href="https://www.invespcro.com/blog/referral-marketing/" target="_blank">recent study found </a>that referred customers have a 30% higher conversion rate, a 16% higher lifetime value rate, and a 37% higher retention rate than leads generated from other marketing channels.</p><p>However, you can rely on something other than organic referrals to achieve these figures.</p><p>Another way to generate brand advocacy is by creating customer referral programmes, where individuals can benefit by introducing others.</p><p>London-based fintech Revolut executed this with great success in 2018 - 2019. Offering up to a £50 cash reward for every referral, they reported a<a href="https://performancein.com/news/2020/10/19/pma20-winner-case-study-impact-revolut/" target="_blank"> 700% increase in the number of customers acquired</a> over the same period.</p><p>However, customer brand advocates are just one type of advocate you can have for your business.</p><h3>Employees</h3><p>Done well, employee advocacy can be compelling. For larger organisations, there are potentially hundreds of individuals working towards common goals whose authority you can harness to promote the products and services that they are working on via their own social media channels, individual networks, and word-of-mouth interactions.</p><p>Your employees should already be invested in your values and your product. If this is the case, they are likely already positively talking about your brand in everyday conversations. They are powerful advocates you have on your side who will need little direction or guidance.</p><h3>Partners</h3><p>Whether working with an agency to support your marketing efforts or partnering with a charity to improve your CSR initiatives, you will have partners across your business who advocate for your brand. They can be essential in sharing positive experiences and insights into your company and product, which will help differentiate you from your competitors.</p><p><strong>Note:</strong> It is important to be selective about which partners you want to harness as advocates. Make sure you are partnering with businesses and charities that align with your values and culture and that they have a genuine passion for your brand and what you stand for.</p><h3>Influencers</h3><p>Some companies employ brand ambassadors who actively reach out to others. Social media has encouraged this with the rise of 'influencers' who are paid to promote goods and services to their followers, and has become a popular marketing tactic in recent years. By partnering with advocates, brands can leverage their reach and influence to promote their products or services.</p><p>Although this route for brand advocacy can be expensive, it can also be highly effective. A <a href="https://thesocialshepherd.com/blog/influencer-marketing-statistics#:~:text=61%25%20of%20Consumers%20Trust%20Influencers,trust%20branded%20social%20media%20content." target="_blank">recent study showed</a> that 61% of consumers trust influencer recommendations, whilst only 38% trust branded social media content.</p><p>Unpaid brand advocates will always have a more powerful impact than paid influencers because their feedback is altruistic, prompted by a genuine connection with the brand — the strongest form of social proof and resonates widely with other potential buyers.</p><h2>Building a Brand Advocate Strategy</h2><h3>Ensure you fully understand your audience</h3><p>The first step to developing a compelling brand advocate strategy is to ensure you fully understand your audience. Consider their values, needs, and pain points, and you will be halfway there.</p><p>Developing a product, creating a strategy, and streamlining your communications to answer these questions effectively will enable your customers to identify with your brand and feel like you genuinely understand them.</p><p>This, in turn, will drive the engagement you are looking for. If you aren't sure of the impact your strategy is making, then you can also run surveys over an extended period to get a better idea of the impact you are making.</p><h3>Create content you know will resonate with your audience</h3><p>Secondly, you must create content you know will resonate with your audience. The more you create content that engages them, the more likely they will be to build an emotional connection with your brand, which gets them talking about you.</p><p>It is also worth considering how best to communicate with them. It isn't just social media that allows you to build that connection. Think of podcasts, newsletters, video content and blogs that all focus on the needs and values of your customers.</p><p>User-generated content (UGC) has become an essential part of marketing for businesses in recent years. By encouraging customers to share their experiences with a brand, companies can also create a library of content that can be used to promote their products or services in a way that comes across less "on-the-nose".</p><h3>Provide first-rate customer service</h3><p>When you treat your customers well, they are more likely to stick around and recommend your business to others, so always provide first-rate customer service.</p><p>Our research has shown that 44% of people who leave a negative review are happy to use a business again if they receive a satisfactory response, and 40% of consumers post positive comments on social media about companies that handle their complaints well.</p><p>This goes to show that unhappy customers can still be turned into advocates.</p><h3>Make it easy for your customers to share your products</h3><p>Your customer engagement should continue even after they have purchased and left a review. Make it easy for your customers to share your products or services with others by including social sharing buttons on your website and email newsletters, and consider creating content such as videos or infographics that customers can easily pass on to their peers.</p><p>You can continue to drive engagement after they have purchased and motivate them to be loyal customers by offering incentives such as a discount code, free products or a chance to win a prize in exchange for referrals or social shares.</p><h2>The Benefits of Brand Advocacy</h2><h3>Increases Brand Awareness &amp; Engagement</h3><p>Advocacy creates a virtuous circle of engagement, where the feedback you receive from your advocates supports your brand in improving. Your advocates increase your brand's reach, sharing enthusiasm with their networks. They lead the way in responding to any initiative your brand undertakes, encouraging others to follow their lead - further extending the power of social proof.</p><h3>Builds Trust &amp; Loyalty</h3><p>Trust is central to brand success. A <a href="https://hbr.org/2022/11/4-questions-to-measure-and-boost-customer-trust#:~:text=Our%20own%20research%20shows%20that,and%20less%20likely%20to%20leave." target="_blank">2022 Harvard Business Review study</a> showed that trusted companies outperform their peers by up to 400% in total market value, and 88% of consumers are more likely to buy again from a brand they trust. Customer trust matters because it helps companies both attract and retain loyal customers. Many businesses focus on <a href="https://www.feefo.com/uk/business/resources/customer-acquisition/customer-acquisition-guide" target="_self">customer acquisition</a>, but retention is equally important.</p><h3>Increases Customer Retention &amp; Satisfaction</h3><p>As we know, brand advocates are happy, passionate customers. Many businesses focus on <a href="https://www.feefo.com/uk/business/resources/customer-acquisition/customer-acquisition-guide" target="_self">customer acquisition</a>, but retention is equally important. Acquiring new customers can cost five to seven times more than retaining existing ones, depending on the industry involved. Research by Frederick Bain, the inventor of the Net Promoter Score, found that <a href="https://www.feefo.com/uk/business/resources/customer-retention" target="_self">increasing customer retention</a> rates by 5% increases profits by 25% to 95%.</p><h3>Improves Brand Perception</h3><p>According to John Galpin, Co-Founder of Design by Structure: "Customer perception is about the customers' own experiences of a brand, how it aligns with their own beliefs and values, their interaction with it at every touchpoint, from the awareness, through to purchase-decision to having it in their home. Brands don't hold the reins completely."</p><p>It is only natural that people's beliefs and values align with those of their peers. You can read more about this in our <a href="https://www.feefo.com/uk/business/resources/business-insights/brand-perception-report" target="_self">Brand Perceptions Report 2021,</a> where we look further into the many changing factors that affect consumer motivation.</p><h3>Provides Trusted Recommendations</h3><p>When you have brand advocates, they shout about your brand, not just to their network and peers but also online, on social media and through review sites. With 93% of consumers reading reviews before purchasing, prompting your advocates to provide verified reviews is essential.</p><p>Verified reviews are the real window into what people think about a brand following a proven interaction or experience, or after purchasing a product they're reviewing. You can read more<a href="https://www.feefo.com/uk/business/resources/business-insights/what-makes-a-review-verified-and-why-it-matters" target="_self"> about verified reviews and the importance of them here.</a></p><h3>Lower Acquisition Costs</h3><p>Turning to consumer advocacy is a cost-effective method of brand promotion, as once you've won over your customers, many are willing to advocate for a product or service for free. Much as fans of a sports team or musician will leap to the defence of their chosen idols if they receive online criticism, engaged consumer advocates will discuss their preferred products or services, providing fresh content.</p><p>Beyond the obvious reviews and star ratings and the impact these can have on sales, advocates are an invaluable source of insight for brands. Insights can improve products, highlight gaps in service, and deliver sustainable, organic growth.</p><p>When consumers are vocal about their experiences with a brand or product, businesses can learn from that feedback and improve their offerings. Companies can build stronger customer relationships and ultimately improve their bottom line by paying attention to what consumers say and responding to their concerns.</p><p>The perception of your brand and the resulting brand advocacy should be a key focus for your business and an integral part of your strategy going forward. You can learn more about this in our <a href="https://www.feefo.com/uk/business/resources/business-insights/brand-perception-report" target="_self">Brand Perceptions report,</a> which reveals several intriguing statistics about how people perceive the brands they buy from and why this data is so important.</p><p></p>