Social media has become so ubiquitous nowadays that it seems every person and business in the world has some sort of social media presence. Some businesses may simply have a profile because they have FOMO and want to ensure they have a presence, and some have it and use it to maximise the benefits and potential that social media can bring for a business.
You may not NEED social media, but let’s explore some of the reasons why social media can be good for businesses large and small.
One of the main potential benefits for businesses is the ability to attract new customers. With users logging on habitually, they are constantly exposed to businesses. Whether it is a business they have liked or followed, or businesses who are running paid social advertising campaigns, this active audience provides the opportunity to get eyeballs on your business - through posts, ad campaigns or even through influencers.
If you can create content which is relevant and engaging for your audience, this can help convert your followers into paying customers.
The flip side to this is that it can be extremely noisy and hard to cut through. In 2020, Facebook generated an astronomical $84.2 billion dollars in ad revenues from over 10 million active advertisers on the platform.
That may seem like a hell of a lot of competition, but with the right strategy, tailored to your audience, you can cut through the noise and engage with current customers and attract new ones.
Content is king on social media. It is what grabs people’s attention and encourages them to engage with your brand. Content can be anything from: written articles, videos, images or quizzes/polls.
A survey from Clutch in 2017 found that articles, videos and images were the most successful at engaging customers and cutting through the noise. Developing a strategy that utilises these and communicates your brand identity can be the difference between a successful social media strategy that is able to cut through the noise, and one that doesn’t.
If you’re not on social media but your competitors are, this means that your voice is not being heard. You may have a totally different ethos from that of your competitors, and your absence leaves a void. Your ethos and identity may be exactly what someone is looking for and may align better with their personal beliefs or preferences, but if they can’t find you, then this opportunity is missed. And who will they go to? Your competitor!
Say for example we have a small retailer who sells eco-friendly vegan products such as soaps and candles. The vegan market has grown massively over the past number of years and it can be a very highly engaged community, and also very lucrative. If this business is not online and doesn’t have any social media to promote their products, then they are limited to their bricks and mortar store and the surrounding area.
However, if this business had an active presence on social media, this can widen their audience beyond that of their surrounding area, increase their brand awareness which could also increase their potential customer base, and it could essentially act as a shop window online leading to increased sales revenue.
Obviously there are some logistics which may have to be factored in when considering this for your business, such as resource, both financial and physical.
Social media can require a lot of focus and attention, and many small business owners may feel like their time is better spent elsewhere focusing on the day to day running of their business. It may not work for everyone, but the value cannot be ignored. In the situation where you feel like it is too much of a commitment, engaging with an agency to explore the benefits for your business may be worth a shot. Or alternatively, try to set aside an hour or two each week to plan and schedule your social media content for the next week.
Studies have shown that acquiring a new customer can cost five times more than retaining an existing one. Social media, along with other digital marketing tools such as email, allows you to stay in touch with existing customers. This can be beneficial in reminding them of upcoming events or promotions and keeping them engaged with your brand.
As we have already touched upon, social media can attract new customers through paid social advertising but if you use your social media to keep in touch with existing customers, through organic referrals or recommendations, your existing customers can also attract new customers for you completely free. Consumers are also more likely to trust a recommendation from a friend or family member than any other form of brand advertising. Don’t underestimate the power of word of mouth marketing and social proof!
Not only does strong customer retention help with new customer acquisition, but it can also be hugely important for a business’ growth strategy. If you have an engaged community of returning customers, this can alleviate some pressure when it comes to budgeting decisions.
Social media should not be primarily a place to sell, it is a place to educate and inform. Whilst content which entertains appeals to people’s emotions, content which educates or informs appeals to their rationality.
Creating content that is educational can help engage potential customers and move them along the decision making process, ultimately (and hopefully!) encouraging them to make a purchase decision. This can also increase your brand’s perceived authority and credibility within the industry in the eyes of current and potential customers.
Consumers are savvier than ever, and many will go straight to a company’s social media profiles and website and make an evaluation before making a purchasing decision. If they reach your social media profile and find an empty storefront with little or no information or worse yet, old outdated information, the evaluation they make may not be a good one. Step in your competitor.
Therefore, educational content can boost your brand authority and help create a good first impression to your potential customers.
So whilst the answer to the question “Does my business really NEED social media?” May be “No”… there are a huge amount of benefits that social media can bring to your business which should be considered. Increased sales revenue, customer retention, customer acquisition, communicating your brand and having a voice in the industry, as well as increasing your brand authority. These are all hugely valuable to any business.
Of course there are some cons which should also be considered: financial and physical resources, and technical ability and know-how being the most common, especially for small businesses. It is up to each business owner to evaluate these pro’s and cons and make their own decision.
