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64% of Small Businesses Don't Consider Social Media Important [Data]

 

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As a business, do you fully understand how social media can benefit your marketing strategy? I ask this because, according to research released by eMarketer today, it seems like a lot of small businesses are confused about how engagement in social media can help achieve their business goals.

The way we see it, participation in social media has a number of great business benefits. It can help you demonstrate thought leadership, aid in lead generation, offer a platform for customer support, serve as a promotional vehicle for your content, and more. But ultimately and overall, social media is an extremely valuable tool for generating and increasing word-of-mouth buzz for your business.

Still, many small businesses don't seem to be making that connection...

describe the imageAccording to a June 2011 survey by Hiscox, 64% of the small business decision makers surveyed said social media was either not necessary, they didn't know enough about it, or had no opinion; only 12% were frequent users of social media; and 24% participated just occasionally. This research reveals that the majority of respondents are apathetic about the business benefit of social media engagement.

That said, 50% of those surveyed indicated that word-of-mouth recommendations is a marketing tool they can't do without. Furthermore, just about two in five respondents said word of mouth was the main way they generated business. At the same time though, only 4% of respondents indicated that social media and blogging were tools they couldn't live without.

Wait a minute. Isn't there a disconnect here? Word of mouth is obviously a priority for many of these small businesses, yet don't they understand that one of the main benefits of social media marketing is an increase in word of mouth buzz? Isn't social media, at its very core, word of mouth?

In a nutshell, small businesses aren't exactly treating social media as a priority, and with so many of them relying on word of mouth as a key marketing tool, there must be a lack of understanding here.

How Social Media Improves Word of Mouth Marketing

The fact of the matter is, social media can be a great tool to drive word of mouth marketing for your business, and here are four reasons why.

1. It Helps Spread Messages Beyond Your Immediate Network: One of the beauties of social media is that it helps you spread your messages and content not just to your immediate network of fans, friends, and followers, but also to their fans, friends, and followers. Social media makes it easy for others to retweet, re-share, and pass along your content, spreading your messages to more prospects you didn't initially have contact with and generating word of mouth buzz to a larger group of potential customers.

2. It Offers an Easy Platform for Recommendations & Referrals: People are constantly suggesting products and services to friends in social media. Furthermore, people are constantly asking for recommendations. Social media is a great way for people to share their opinions about products and services and suggest them to others in need.

3. It Gives You Control Over Initial Messaging: Because many times your fans and followers will just be sharing your original message with their networks, social media enables you to control your initial messaging. This gives you the opportunity to shape your marketing messages in the exact way you want them to be perceived by prospects.

4. It Help Build Relationships to Encourage More Word of Mouth: Social media shouldn't be a one-way form of communication. Sure, it can be a helpful tool to promote your content and spread your messages, but it's also critical to also engage in a two-way dialogue with your fans and followers. Building good relationships with your fans will also make them more likely to evangelize and spread your marketing messages, increasing word of mouth!

Are you convinced of the power of social media to help generate word of mouth for your business?

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Posted by Pamela Vaughan on Mon, Aug 08, 2011 @ 04:00 PM

COMMENTS

Word of mouth: Word of fingertips!

posted on Monday, August 08, 2011 at 4:17 PM by pubfish, inc


social media has become a tool for work at home people to use when they don't feel like working or don't have any work to do. They use it to kill time and to socialize with hundreds of people that they don't know and never will. Businesses that say it is not necessary to their business probably say that because they are busy dealing with real people face to face.

posted on Monday, August 08, 2011 at 8:31 PM by Kathleen


When I see a report like this, I want to know more about the survey respondents. Are these "small businesses" local pizza stores, two man CPA firms, or 30 person manufacturers? All three examples I cite are "small business" but the difference between B2B and B2C and employee size can make a big difference in attitudes toward social media.

posted on Monday, August 08, 2011 at 8:46 PM by Bernie Borges


Good survey done. Being in the stream of Social Media, I think this is the fact present scenario in the market.

posted on Monday, August 08, 2011 at 11:41 PM by Nilofer


We are in the process of setting up a part-time business, alongside full time jobs. The use of Social Media has been imperative, in fact, without Twitter, we might not exist...

posted on Tuesday, August 09, 2011 at 12:23 AM by Laura Austin


Nice data. However, I have several questions regarding the true usefulness of social media for small companies. 
In many markets, the positions for "thought leaders" are already occupied. What then should be the objectives for the rest of companies in the market? Not-leaders, or "just another one" are not nice... 
Usually, less than 10% or followers actually participate in company pages. How can a company with few cusstomers (a small, local one) engage with an audience that does not respond? 
Just some wandering ideas about SM.

posted on Tuesday, August 09, 2011 at 1:09 AM by Xavier Paz


I also struggle with the value of social media like Facebook and Twitter. Don't users of these mediums resist traditional advertising on them? Also, if they're going to evangelize a product or company, won't they do that whether or not you're on social media?

posted on Tuesday, August 09, 2011 at 8:08 AM by Dave Fallon


You can drag the horse to water - and watch it die of dehydration. I push SM to many of my fellow businesses who then tell me they don't have time. I counter: How can you not have time to make sales?? Good Luck all - keep up the good fight. SM is nothing but the best generational marketing tool that there is.

posted on Tuesday, August 09, 2011 at 8:17 AM by Kerry Mackay


I think the marketplace for all types of businesses is assimilating a social component. Business leaders can get ahead of the curve by understanding and using social media channels now, or play catch up in the future when competitors have gained the attention of their prospects. Social media is an evolving marketing channel and promises to be an integral part of the marketing mix for almost all types of businesses sooner rather than later.

posted on Tuesday, August 09, 2011 at 8:19 AM by Shannon Lowe


Strikes me that social media is another form of networking just like the face to face networking which everyone takes for granted. Is it the be all and end all, probably not and it will depend on the way it is used how beneficial it will be for any user. My sense is it is another way to keep in touch and to learn, both useful.

posted on Tuesday, August 09, 2011 at 9:40 AM by Lee Kirkby


Very surprised to see these numbers so high. Even for small local businesses...heck, especially for small local businesses, there are so many ways to engage, to get people excited about your business, and to build a community. I think the trick is for business owners to see that SM is not necessarily a place to do marketing per se, but by being there and having personality and interacting, they are marketing nevertheless.

posted on Tuesday, August 09, 2011 at 10:00 AM by Jason Stuart


Businesses should definitely take advantage of social media since it can provide positive results. It's really a very cost effective method in connecting with customers.

posted on Tuesday, August 09, 2011 at 6:01 PM by Justin Dupre


my site has and rss feed that post new products direct to my facebook and twitter accounts. i don't get a lot of traffic from them but better than nothing.

posted on Thursday, August 11, 2011 at 5:30 PM by hugh williams


Comments have been closed for this article.