For decades, the success of a small business depended on the famous “word of mouth.” Good service, a satisfied customer, and a personal recommendation were enough to guarantee new patrons. However, in recent years, this dynamic has changed. Word of mouth has not disappeared: it has been digitized. Today, what decides which businesses appear first is no longer conversations among friends, but rather the algorithm.
The new word of mouth happens on Google, where customers are drawn by review ratings and geographical proximity, no longer just by direct referrals. The choice of a salon, clinic, or barbershop often begins with a “near me” search, followed by an analysis of ratings and comments. This combination of visibility, location, and reputation has become the new format of recommendation, where the algorithm amplifies the reach of traditional word of mouth without replacing it. The new influencers of local consumption are not just content creators, but ordinary customers. Every review, comment, and photo published on a business profile has the power to influence dozens (sometimes hundreds) of purchasing decisions. For local businesses, this means that every service interaction is also an opportunity to gain prominence in searches and attract new customers.
In this context, the algorithm acts as a megaphone: it amplifies the positive (or negative) experience of each customer. Therefore, a well-rated profile, with quick responses and constant updates, is as valuable as a good physical storefront. Trust remains the central asset, but it is now built publicly. Today's consumer is more demanding, discerning, and rational. They seek evidence before choosing: they read recent reviews, observe real photos, compare prices, and prioritize convenience. A study by the IEOM Society (2020) showed that perceived quality and trust explain over 70% of customer loyalty in services. Meanwhile, research from FGV EAESP (2022) indicated that Brazilians value transparent and consistent companies more than those that merely communicate well. Trust, therefore, is earned through experience and maintained through consistency. Customer loyalty today goes far beyond good service. It involves offering a frictionless digital journey: easy scheduling, automatic reminders, quick responses on WhatsApp, and attentive post-service follow-up. These small digital gestures build the perception of professionalism and care. In practice, this translates into fewer no-shows, more repeat business, and better reviews. It is efficient management transforming relationships into reputation and loyalty.
Even so, many small businesses and independent professionals treat their digital presence as something secondary. Outdated profiles, lack of responses and real photos, and absence of integration between channels are mistakes that undermine trust. Digital presence must be planned with the same care as in-person service, as it is what now builds credibility even before the first contact.
The next stage of customer loyalty will be marked by three pillars: artificial intelligence, personalization, and automation. AI will enable the identification of behavioral patterns, suggest actions during low-demand periods, and personalize communications based on customer history. Automation, in turn, will ensure consistency and efficiency, maintaining an active relationship without losing the human touch.
In the end, building customer loyalty in the digital age is still about trusting, listening, and caring, but now with the help of data, algorithms, and automation. Word of mouth has never been more powerful. Only now, it speaks the language of the digital.
*Davi Iglesias is CEO of Gendo, an online scheduling and management platform aimed at micro, small, and medium-sized enterprises.
