WHAT YOU NEED TO KNOW ABOUT
ONLINE INFLUENCE ON BUYING BEHAVIOR
According to a Rubicon study of web users, online reviews are the second biggest influencer of purchase decisions, second only to word of mouth. So while you're taking care of your customers, you'd better pay attention to what's being said about your company and products online, too.

Many companies have made forays into online communities like Yahoo, Facebook, MySpace, and other places on the web where people gather. However, a lot of these companies have quickly backed out, deciding that most discussion happens among web enthusiasts who don't represent the average Joe Buyer.

Turns out, this is a pretty big mistake.

Rubicon's study found that yes, most discussion does involve a small group of regular contributors. In fact, 80% of online user-generated content is created by less than 10% of all users. But here's the flip side to that statistic: the other 90% of us are out there -- reading, researching, evaluating, and making decisions on what to buy based on what we read online. If your company ignores online communities rather than actively cultivating a positive brand image in them, it's missing a chance to communicate with a much bigger group than it would appear -- and ignoring the second biggest influencer in that group's decision to buy.

Think about online communities as a theater, with actors and a crowd watching. Only a small group is participating, but there's a whole silent audience watching the action from their seats, forming opinions based on what they're hearing.

Some of the study's other findings about web usage were:

1. Search (like Google) is the most commonly used web category, but social networking sites are second. Facebook, MySpace, and LinkedIn are among the most commonly used and valuable social networking sites. News sites (CNN.com, NYTimes.com) comprise the third leading web category.

2. The websites that Americans value most, in order, are Google, Yahoo, YouTube, Wikipedia, and Facebook.

3. Social sites have the largest impact on young people. Younger users are more active online, are more likely to search online for information they need, and are more open about their social networks -- more willing to accept connections from people they know only vaguely.

4. Half of the Web's most frequent contributors (that 10% that generates 80% of the content) is under age 21. They are also technically experienced, predominantly caucasian, and more likely to be democrats than republicans. 61% are male, 40% are students, and they are more likely to be single than other web users.

If you want to do some grassroots branding, get out there and into those online communities! Develop a strategy and a presence, and talk about your company and your products. Answer questions; offer frequent updates. Build rapport, just like you would do in person. If you're adding value, you'll make connections and develop a following. And if those online "regulars" feel good about your company, they will talk you up and make you look good... while the other 90%, including your competition, watches.

Check out Mari Smith’s blog for some great content on Facebook for business and this post by Glenn Murray, with terrific tips for getting the most out of Twitter.