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Navigating Social Media Legal Risks: Safeguarding Your Business by Robert McHale

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2. Online Endorsements and Testimonials: What Companies and Their Employees Can and Cannot Tweet, Blog, or Say

Businesses spend considerable time and money building and executing marketing campaigns to promote their brands when, in fact, one of the most effective advertising tools costs almost nothing: word-of-mouth advertising.

Happy customers and their endorsements can steer business in your direction quite effectively, and with little cost. Studies, such as the one recently published by the e-tailing group PowerReviews,1 consistently show that customer reviews have a significant affect on purchasing behavior. This study indicates “shoppers today are spending more time reading reviews before making purchasing decisions, 64 percent take ten ...

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