Social Media and Its Impact on BusinessAndrei Klubnikin
The average user now spends almost 2 hours a day on social media. With the rise of chatbots and social commerce, the figure may grow twofold in the near future. In order to connect with their audience, forward-thinking brands put on social faces, try to deliver a personal customer experience and revise their marketing strategies. Here’s how social media affects business.
The impact of social media websites and apps on business
- Increased brand awareness. While having a brand page on Facebook (over 1.89 billion monthly users) or YouTube channel (1 billion monthly users) is the new black, you can hardly drive brand awareness by simply “being there”. Tech-savvy companies including Uber, TechCrunch and Sephora create chatbots to interact with their customers through Facebook Messenger. The latter, for example, enables Messenger users to book makeovers at Sephora locations across the USA, pick up the right lip color by scanning user images and get personal beauty tips. Considering the fact that messaging apps will soon outstrip social media, investing in bot development will give you a competitive advantage over your rivals. Provided you address a reliable social media app development company, you can also enhance your website with social media components. Sharing high-quality content on your blog is a great opportunity to position yourself as an expert in your field, increase website traffic and distribute content in a natural way;
- Marketing budget optimization. Although the so-called virality is most often created by marketers, a well-though-out social media strategy will help you reduce marketing expenses in the long run. Yes, you can spend $ 5 million on a Super Bowl ad and get a brief spike in revenue. A strong social media presence, on the contrary, guarantees stable revenue growth. 80% of users who follow you on Facebook aren’t likely to make a purchase at all; yet, they can be considered potential influencers – that is, the people who can spread your brand’s name and recommend your company to their family and friends. Forbes reckons 92% of users value recommendations from friends and fellow consumers over all forms of advertising. You can’t miss the opportunity to get promo for free, right?
- Improved communication. A coin has two sides. The growing adoption of social media encourages users to exploit the right of free speech to the point of absurdity. Although social media (and chatbots in particular!) enable brands to communicate directly with their customers and provide tons of valuable feedback, negative customer reviews can also ruin your business. When Mountain Dew asked users to think of a name for their new fruit drink, they suffered a major troll attack. Back in 2012 gay rights activists dragged Chick-fil-A all over the Web after its owner had voiced support for traditional marriage on Twitter. That being said, social media monitoring will give you an idea of what customers really think about your brand. Study the insights – and act accordingly! Develop a corporate social media usage policy, instantly respond to customer complaints, do your best to make it up to your audience – and success will follow!
- Customer loyalty. We’re not talking about complex customer loyalty solutions like Starbucks – although building one is a tried-and-true strategy to drive customer satisfaction! Brands that turn to social listening and monitor the mentions of their company and products across multiple social media platforms significantly improve retention rates. In order to boost customer loyalty, you can also hire an influencer – a specialist who has chosen a certain niche, built an online community and shares his knowledge with followers. Why does influencer marketing work? First of all, customers see influencers as their peers. Second, they need stories they can relate to (and that’s why you should make storytelling part of your overall social media strategy). Last but not least, it’s the freedom of choice. Thinking about how social media affects your business, you can’t ignore the fact that customers who follow you on Twitter do so of their own free will. And yes, an influencer may come from inside your company. R-Style Lab software development company, for example, puts a lot of effort into content marketing and interviews senior developers and system architects to craft high-quality articles on IoT, AR, AI and mobile app development. The approach allows forward-thinking brands to deliver real value to users and subsequently grow their customer base.
Although many companies use social media for business purposes, few manage to measure its impact. The traditional hits, likes and page visits represent the very beginning of the sales funnel (that is, raising awareness), but do not necessarily lead to a purchase. That’s why you should set clear goals for every social media campaign, track leading indicators (such as CTR, page likes and shares), compare its impact to previous campaigns and build predictive metrics to optimize your SMM efforts in the future.