How to Use Social Capital Effectively

Every business is constantly building social capital. It can be positive social capital, which results in recommendations, references and advocacy for your business, or it can be negative, which results in bad consumer reports and negative buzz. Either way, you are going to have social capital. Of course, if you are a savvy and responsible business owner then you will take great care that your social capital is positive. You will be responsive to the needs of clients and eager to deliver and even over-deliver whenever possible. The rare instances of consumer dissatisfaction that you deal with will be overwhelmed by the positive evidence that you are truly a responsible and trustworthy partner.

When you have this kind of positive social capital, you should put it to use. Social capital can be self-perpetuating, but you can also harness it to create even more capital and more business for yourself. Here are just a few ways that you can use social capital to create business and cement relationships:

· Keep a reference list
If a client has been particularly pleased with your service, ask them if you can refer other people to them. Most strongly satisfied clients will be more than happy to tell other people about their experiences as long as you do not overwhelm them with contacts.
· Get it in writing
Another option for showing off your social capital is with testimonials. Customers who do not want to be contacted will likely be happy to write down a summary of your interactions and why they were pleased with your service. A portfolio of these can be very convincing to future potential clients.
· Keep the buzz going
Make sure that your name is out there – even when you may not be the center of conversation. Items like pens, golf balls, magnets, briefcases or T-shirts are all good ways to be visible whether you are physically present or not. When people comment on the brand on the shirt, pen, etc., the owner will then be more likely to describe the pleasant interaction that they had with you.

And remember, market creatively, carefully and often!