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For those of you that use testimonials, do you leave them unsigned, use just the first name and last initial, or use the full name?
(Obviously, I would get permission to use the quote from the person that said it.)
I would say that the best testimonial is the one where somone writes a review of your product/service and posts it on their website. You can then quote it and provide a link to their site. That's one kind of relevant outbound that doesn't hurt.
I like to rotate my best testimonials on the upper level navigation pages. Within the testimonial I link to the specific service/product referenced.
I strongly recommend at least experimenting with testimonials.
And, most importantly, I secure the permission of the customer to use their comments publicly before they get posted. Maybe it's not really necessary, but I think it shows respect for the customer who may not want their name plastered on a web page somewhere (though nobody has ever refused to let me use their comments).