Editor's note: This article appeared in the May 9, 2011, edition of Quirk's e-newsletter.
Consumers are doing their homework when it comes to making decisions about which local businesses to frequent but no one factor or source overwhelmingly influences the final choice - including those highly-touted deals and discounts. However, the Facebook "Like" button, launched in 2010, has already trumped the review as the way consumers prefer to show their support online for local businesses, according to a poll from Rochester, N.Y., research company Harris Interactive on behalf of CityGridMedia, West Hollywood., Calif.
"Surprisingly enough, Likes are trumping reviews when it comes to sharing feedback but this does not translate to Facebook being the first or only place consumers turn when deciding to try someplace new," says Kara Nortman, senior vice president, publishing, at CityGrid Media. "What this means for small businesses on the Web is that they should encourage Likes but also round out marketing efforts to reach consumers across a variety of touchpoints. The truth is, there's no one silver bullet to influence people that are choosing local businesses on or offline."
Overall, Likes do trump reviews of face-to-face interaction wins out overall. With the popularity of the Facebook Like button, businesses don't need a grand stage to broadcast their popularity to the world. Even still, a whisper in the ear trumps a click when people want to show their support for local businesses.
So, what are the leading ways that users show support? Three-quarters of people tell their friends and 20 percent of people say they Like it on Facebook to show their support, compared with only 13 percent who write a review. Millennials are even more likely to favor Facebook over reviews, as are women. Forty percent of people under age 35 Like a business. That number increased to 49 percent in the 18-to-24 age group versus 18 percent who said they would write a review. One-quarter of women hit the Like button versus 11 percent who write reviews.
While Facebook may be one of the first places people go to give feedback on a business, it's certainly not the only stop. Despite a sluggish economy and the frenzied attention as of late, discounts and offers are not a major factor in how consumers choose a merchant. More than half (52 percent) of adults under age 35 visit more than two Web sites before checking out a local business. Sixty-three percent of respondents under age 35 head to Google; 24 percent visit Facebook; 21 percent look at reviews sites; and 17 percent copped to clicking on the first link on the search results page (whatever that link may be). Only 8 percent of people said a deal is the number one thing that influences them to try a local business
When doing their homework, those under age 35 report that the business owner's feedback may carry equal weight to input from friends or social networks. So, when doing online marketing - be it Facebooking, tweeting or responding to reviews - be sure your spirit is represented along with your specials. Almost half of people under age 35 are more influenced to try a business from the owner of the establishment than a friend.