“I read the reviews and decided I must see you.” Those are the magic words that Tracy Menasco, owner of Trixie’s Beauty Bar on North Lombard has being hearing since she opened her business just over a year ago. Her customers aren’t talking about articles in The Oregonian or Willamette Week. They’re referring to unpaid coverage that has appeared on social media websites such as Yelp and CitySearch.

Trixie’s, which offers hair and nail care, as well as facials and waxing, does no traditional advertising. It doesn’t have to. Menasco, a Reed College graduate who earned her M.S. in Marketing from Northwestern University, told me the other day, “My business has grown tremendously as a result of just a handful of online reviews from satisfied customers.”

Not only do these online reviews help her “get the word out,” but they also do wonders for her search engine visibility. Reviews and star ratings often show up in search results and Trixie’s has booked clients from as far away as North Carolina and Japan who were planning their trip to Portland.

This body waxing specialist wants her clients to Yelp – just so long as they go online to do it. She is not alone. As a recent article in USA Today observed, more small- and medium-sized are using online reviews to boost their business than ever.

What’s Roger Ebert got that I ain’t got?
According to Nielsen/NetRatings, nearly 3 percent of all Internet users in March went to Yelp; traffic there has quadrupled over the last year. That represents a significant shift in consumer habits – those who formerly sought out the advice of professional experts are now relying on peers for advice and direction. They are also giving out such advice themselves. These ordinary consumers are influencing commerce to such an extent that traditional media increasingly seems to be just another voice. Last autumn, a survey by Deloitte’s Consumer Products group revealed these telling facts:

-Over 60 percent of consumers read consumer-written product reviews on the Internet.

- Of these, more than 80 percent say their purchase decisions have been directly influenced by the reviews.

- Such reviews reach far beyond the online world: 70 percent of these readers share the news with friends, family or colleagues, thus amplifying their impact.

Of course, newspapers aren’t sitting idly, allowing consumers to scoop all the attention. Readers of Willamette Week, for instance, can take the conversation to the paper’s Web version, rating staff writers’ articles and posting their own comments. (A quick glance at the paper shows that such measures have had lackluster success thus far.) Newspapers, of course, aren’t going away – professional experts will always have a well-deserved audience. Still, they are making room for consumer voices, and staff cuts at bureau desks are as much a reflection of this new reality as they are of the fact that newspaper ad revenues are declining.

Tomorrow, I’m going to check back in with a few dos and don’ts of social media marketing.