Friends Vs. Beyoncé: Why You Don’t Need a Celebrity Endorsement

These days it seems like every company has a celebrity linked to its product or services: Beyoncé drinks Pepsi. Betty White eats Snickers (and plays football). Kate Hudson uses Almay and wears Ann Taylor. Ashton Kutcher snaps photos with his Nikon. Sarah Jessica Parker and Giada DeLaurentis both color their hair with Garnier products.

 

The big boys are shelling out the big bucks to big stars in exchange for public support of their business. What should small businesses and franchises do? Is a celebrity endorsement really the best use of money when you’re trying to engender customer loyalty?

 

The short answer? No.

 

Think about it; how often does a celebrity endorsement really affect your buying behaviors? Do you trust 50 Cent? What about Kim Kardashian? I didn’t think so.

 

At its core, each transaction is about trust. As a matter of fact, need or want is irrelevant– sometimes we buy things we want but don’t need and sometimes we buy things need but don’t want. Regardless of our motivation for purchasing something, as we pull the dollar bills from our wallets we’re trusting that the service or product will be or do what we believe it will.

 

A recent study by Battery Ventures makes three very salient points on the subject of buyer behavior in a social context: celebrity affiliation does not build trust, service is king and family trumps friends.

 

So, what should the little guys — franchises and small businesses– do to grow their customer base? It’s easier than you think:

 

  1. Hire the right people and treat them well. Hire employees you trust and are proud to have as part of your team. Invest in their happiness and there’s a high chance they’ll treat your customers with same loyalty and respect.
  2. Treat your customers like friends and family. One of the biggest reasons why we return to the same restaurants, car mechanics and grocery stores is based upon previous positive experiences. Treat your customer’s concerns or complaints with grace and they’ll come back.
  3. Share good news and specials through social media. Social media isn’t just for college students, as you well know by now. Businesses can really make a big difference in their bottom lines by utilizing platforms like Twitter and Facebook to keep customers engaged. It also makes it easier for friends of customers to hear about you. We all know that we trust what our friends and families say about other businesses.
  4. If you want to get someone to endorse your brand, pick someone who’s already been using your business’ goods and services. People are more likely to believe an everyday person uses and likes your business instead of Brad Pitt.