LinkedIn recommendations are great, but what can one do with them?

At least you can feature them on your own website -- the place where potential new customers will appear. Honest praise from real people who are willing to be quoted in public is powerful and useful.

If people are recommending you without you soliciting them to do so, those people are also self-selecting as your best source for referrals. Thank them for their recommendation, and ask them since they were so satisfied with your service, do they know of anyone else who could use it, and would they be willing to recommend you to them?

And +1 to Jason's answer. Testimonials are great, especially when you can show they're from real people by including a name, photo, and link to their LinkedIn profile.

I also agree with Jason, put your testimonials obviously to your website. If you want to gain new prospects it would be much easier if you have got references, because people usually believe and listen's to other people's opinion, when hesitate to take their own decission.

Whether you use LinkedIn for business customer development in a broad sense, or for the locating of potential Joint Venture possibilities as has been my primary use, recommendations are key. This is particularly true if the recommendations are enthusiastic and from long-term business acquaintances. LinkedIn can serve your business as a central location from which to build your credibility. If you use a thorough signature in every email, posting, or article, listing the URLs of each of your Social Media venues, including LinkedIn, it will provide significant visibility for your business in an understated way.

PS. If you use the free Texter software application it will automate your signature without cutting and pasting, and it can be used for multiple other efficiencies.