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Read closely. Fake testimonials are legal. False testimonials are illegal.

Did you know there are professional testimonial writers? They take the company’s or product’s most desirable attributes and expertly weave them into a lovely story about how Company XYZ’s product changed their (er, someone’s) life. Chances are the testimonial writer has never used the product or service. Just take a peek on any freelance writing job board and you will see job postings for testimonial and review writers for all types of online businesses. Is this the modern day shill?

In the court cases I found on the FTC site (in PDFs so large you would be mad if I linked you to them) the end decision regarding the legality of a fake testimonial was based on whether or not the fake testimonial accurately depicted the experience of the average customer. That is, they basically asked if the content of the testimonial was false.

Of course this practice is controversial. Is it ethical? Is it even legal? Are there varying degrees of its rightness, or is that just justifying lying to the public?

What are testimonials for, anyway?

Probably one of the oldest sales tools in the book, testimonials are supposed to be first hand accounts of fellow customers that tried the product or service and can vouch for its quality and value.

The ethics of writing fake testimonials or reviews are hazy. Here is a look at both sides of the issue.

For: Why using fake testimonials is OKAY

Of course, a business that uses fake testimonials is using them as marketing content. Fake testimonials are used in different ways. Here are some key points regarding the justification of fake testimonials:

• By editing or supplementing a testimonial, you are making it easier to read.
• You are combining a sampling of common customer comments, succinctly writing the testimonial in a tight quote. Nothing wrong with creatively editing comments, right?
• You are writing a testimonial, and then running it by the customer to save the customer time.
• The reality is, businesses do not publish the bad feedback. So using real positive comments to use as testimonials in advertising is not a realistic look at the overall business anyway.
• Many businesses use fake testimonials as a mean to an end. Using fake personal recommendations when a business is first starting out will hopefully draw in more clients that will then provide real comments, thus eliminating the need for fake testimonials.
• Using testimonials is helpful to a site’s conversion rate. They are confidence builders.

Against: Why using fake testimonials is WRONG

Here are a few alternative viewpoints about why using false testimonials is unethical.

• Potential customers like to see that other people just like them enjoyed a product they are considering purchasing. The problem is that there are so many fakes out there that it takes away from the real ones.
• If your product or service is not good, you cannot fake it for long without the word getting out on the street.
• People are smart. Because there is so much garbage, unless you can prove a reputable speaker is providing the comment, it is likely that the comment will be ignored.
• Many people see fake testimonials as false advertising. If you are found out, your business might be deemed untrustworthy.
• Using made up customer recommendations carries across mediums. We all know about fake testimonials on TV infomercials. Many of us carry that same disdain for fake testimonials into cyberspace.

Tips for successfully using testimonials to sell

1. If you can, give the person’s name and business contact information when publishing a testimonial. Many business owners claim that when they do this, the customer is often contacted by potential customers prior to making a purchase.
2. Don’t be afraid to ask your existing customers for testimonials you can use. You will be surprised to find that your satisfied customers can provide more diversely written testimonials than you could! You can use them to help gain buyer confidence without feeling like you are being less than truthful.
3. Always ask for permission from your customers when soliciting real testimonial comments.
4. The best value in a testimonial comes from one with credibility, from someone with authority and some type of expertise in the industry. Your credibility and conversion rates will most likely go through the roof.
5. Buyers tend to prefer the “product review”, like that used on Amazon and other huge e-commerce sites. There is a feeling of being uncensored, which people want to read over the formulated, staged comments.
6. If you feel strongly against using fake testimonials, consider having a Marketing Code of Ethics within your site that details your commitment to only providing factual information through your marketing efforts.

The Saga Continues…

In conclusion, I’m forgainst it.

There is little-to-no-point to sum this one up. This is one of those debates where the truth will not set you free because you’re going to make up that truth anyway and then you’ll probably write a little blurb from little “Johnny Doe of Wichita” saying how your point of view set him free.

If you want to read on…An ongoing dialogue on this topic is going on right now at Grow Your Own Writing Business. Lillie Ammann’s blog, “A Writer’s Words, An Editor’s Eye” has a lively discussion regarding writing ethics.

Additionally, some interesting academic text on business ethics for the online world.

What is Relationship Marketing?

Relationship marketing is the idea of creating and nurturing a relationship with your customers that keep them coming back to you again and again. By providing a great product and excellent customer service and by getting to know your customers and allowing them to know you, customers will be loyal to you and keep coming back for more - in theory and, actually, in practice.

Return Customers = Less Work, More Money

Laura Lake, Marketing Guide on About.com, cites the following statistics in her article entitled, “Customer Relationships are Key to Your Marketing Strategy.” For starters, return customers typically spend 1/3 more than new ones. Amazingly, you will also get 107% more referrals from returning customers than from people that have not done business with you in the past. And finally, it costs at least 6 times more to catch new customers than to generate repeat sales with an existing customer.

When thinking about the overall business development and marketing strategy of your company, focus first on the relationship you have with existing customers. When you have a large percentage of repeat customers, you will be more attractive to new customers, which will soon become part of your customer base. This could spark a debate that includes, at some point, references to chickens and eggs but the point is that if you are spending most of your time and money caring for your existing customers, it will help your business grow in other aspects as well.

There are many ways to work the customer-business relationship to ensure that you customer is happy. Here are five points to consider when thinking about how you can best utilize relationship marketing in your business.

Customer Relationship Tip #1: Provide Top-Notch Customer Service

The main reason why customers do not come back to reuse your business is because they feel your business does not care. And when they leave your business, they typically go to your competitor that has a good offer, and wants their business. Show your customers that you care by effectively handling complaints, anticipating their needs and wants, and providing quick and effective service.

Customer RelationshipTip #2: Treat Your Customers as if You Want a Referral. Then, Ask for a Referral.

If you goof, do your best to resolve customer complaints because upset people say bad things about you. When everyone is happy, referrals are easy to get.

Customer RelationshipTip #3: Shower the People You Love With Love

When you get comfortable with your customers they may begin feel under-valued. Stay on your toes. Generously offer new products and services and be damn appreciative of every second they give to you. They have options of where to buy stuff - no matter how protected you think your niche is.

Customer Relationship Tip #4: Listen, Learn, Give

Do not assume that you know what they want – ask them with surveys and questionnaires. Then move through your business as a customer to see what it is like and where you would make improvements. You could even conduct focus groups of a random sampling of customers, using an unbiased facilitator to gather information. Consider hiring “ghost customers” who will go through your sales process as a mock customer and give feedback on everything from how friendly and knowledgeable your salespeople are to the delivery experience and product quality.

Customer Relationship Tip #5: Use Your Company Business Blog to Communicate

Use your company’s business blog to communicate with customers until they are ready to make a purchase. It is often said that customers will hear a message at least seven times before taking action and making a purchase. By utilizing a business blog, you can easily, and cost-effectively, create a two-way communication with your existing and new customer pool. Wayne Hurlbert’s article on webpronews.com, called “Relationship Marketing: Business Blogs Are The Key” provides insight into how to optimize your blog for relationship management with your customers.

As you write your daily blog entries, your readers get to know you and your business on a more personal level. Your blog begins that all important relationship with your prospects and current customers. You have started a blogging conversation.

As they read about your daily business activities, your problem solving ideas, your business advice, and your various products, they begin to think of themselves as a part of the company.

In fact, they are!

Wanna Go Outside? The Dirty Part

Don’t run around shaking your customers’ hands with a fake smile. Customer relationship management is not something you can just try half-heartedly. It requires a dedicated effort from you and all (yes, ALL) of your employees. Your CRM goals also need to be aligned with the goals of your other marketing, sales, and operational efforts. Relationship marketing should not replace the never-ending need for new customers that will help your business grow. A comprehensive approach is the best way to make sure you are taking care of all of your existing, and potential, customers.

This is a fantastic short (and funny) video about common errors people make with Powerpoint. If you ever use Powerpoint for presentations, you should take a look at it.