Increasing consumer fraud in 2021, blamed on the pandemic, made many customers approach new businesses with caution. The increase in consumer spending combined with a labor shortage gave an opportunity for unscrupulous businesses and scammers to thrive.
Addressing Customer Apprehensions
Reports of customers becoming a victim of problematic businesses are extensive. Some victims, after making large upfront payments, have had contractors fail to return to complete the work. Consequently, consumers remain skeptical about businesses lacking a proven track record.
Establishing Trust with Small Business Customers
For new business owners, establishing trust is key. Practical steps to build credibility and establish a solid reputation are:
- State Registration: Register your business in the state. This allows customers to verify your business’s legitimacy in state databases.
- Google Business Profile: Establish your free Google Business Profile to optimize your business’s online visibility. Become accredited by the Better Business Bureau and utilize profiles on platforms like Yelp, Angi, and Glassdoor.
- Consistent Branding: Maintain consistent visual branding across all channels—website, online profiles, business cards, etc. These details convey professionalism.
- Highlight Credentials: Display licenses, accreditations, and industry affiliations prominently on marketing materials. These demonstrate legitimacy and protection.
- Accessible Contact Information: Ensure consistent contact information across all customer-related platforms. Reliable contact information reassures customers of your accessibility.
- Encourage and Respond to Reviews: Encourage customers to leave reviews. Authentic response to both positive and negative feedback matters more than perfect ratings.
- Active Social Media Presence: Establish an active social media presence. Respond promptly to customer inquiries and engage with posts.
- Personalized Responses: Personally responding to reviews strengthens authenticity.
- Share Your Story: Use the About Us page on your website to share your business’s background, philosophy, and mission. Including a team page further enhances transparency.
Building credibility takes time, but establishing trust with early customers can institute a solid reputation as your customer base expands.
How to Gain Customers’ Trust as a New Small Business (thehartford.com)