One of the key challenges for SMEs is to navigate in a marketplace crowded by large corporations with powerful resources at their disposal.

For many years, consumers have trusted large institutions first, that have a flashy website as well as a plethora of promotional tools from advertising campaigns to PR events. Whatever the industry, it ‘s been tough for SMEs to compete, meaning that they have had to promote themselves across media on a global scale.

However, with the recent collapse of ‘trusted’ institutions that were for years perceived as untouchable (Lehman Brothers anyone?), there is a new opportunity for SMEs to earn the trust of cynical and disappointed customers.

Why? Because by nature, SMEs are small, they are therefore more flexible, personable and approachable.

SMEs are used to being held accountable because they engage in a direct dialogue with consumers. Accountability is key for today’s consumers, who demand to be talked to in a personable manner. Consumers yearn for companies that can reduce the ‘communication’ barriers in order to engage in radical transparency. Accountability is challenging for large organisations that are often perceived as hiding behind complex websites or call centres that bounce from one department to the next customers’ complaints.

Increasingly consumers are more inclined to believe the opinion of other consumers than what features on a company website or is claimed by an advertising campaign. A recent survey by Linkshare and Penn Schoen & Berland associates found that 92% (of 1,000 people surveyed) reported having more confidence in online information about products than advice from shop sales assistants, and 81 per cent said they now conducted internet research before buying a product in order to obtain the largest saving possible. So for SME, there is a real opportunity to become this trusted, personable company, in a sea of ‘one size fits all’ companies.

According to Penn State, 20% of tweets mention brands or products, proving that there is a real consumer appetite for referral online. But even within this space, large corporations are creeping in, paying people to tweet about their services and setting up departments dedicated to answering the comments or complaints posted on social networking websites.

Some SMEs have been creative in the way they use Twitter and have found ways to compete with large corporations, but on their own terms and a smaller scale. This approach can actually create more impact because it enables companies to target their message to a small but interested audience. Unlike large corporations that need to hire people to be their ‘face’, SMEs can rely on a real person that has been engaged with the company for a long time to take on the responsibility of the company blog or Twitter account. For instance, the Albion Bakery in Shoreditch uses a device called BakerTweet that wirelessly connects to a Twitter account and keeps track of the list of baked goods in stock. When something is baked, the baker turns on the dial and presses the button to send out a Tweet to alert interested followers.

AMEX, at the other end of the scale, has set up www.openforum.com – which enables SME customers to connect with other entrepreneurs. It’s a way of helping SME play up to their strength and it seems ironic that this service is provided by a large corporation- but as consumers are increasingly more interested in local content and what is directly meaningful to them, online reputation and the personable approach of SME is something AMEX can also learn from.

The success for managing SME’s online reputation is about engaging in a personable and authentic manner with consumers, as even efforts on a micro scale can go a long way and generate positive world of mouth amongst like-minded individuals that will ultimately help strengthen the brand and business.

Ariane is part of the Future & Trend Insights team at o2