Because it appeared quickly, social media has gained a reputation for some of being a passing fancy, and therefore, not a lucrative one. However, statistics draw a very different picture...
According to Hubspot (Kusinitz, 2014), 92% of marketers in 2014 claimed social media marketing was important for their business, with 80% indicating their efforts increased traffic to their websites. According to Social Media Examiner (Stelzner, 2014), 97% of marketers are currently participating in social media - but 85% of participants aren't sure what social media tools are the best to use.
Let's look at how social media marketing can improve your business:
- Improved brand recognition: Social media networks are new channels for your brand's voice and content. This is important because it not only makes you easier and more accessible for new customers, but also makes you more familiar and recognizable for existing customers.
- Increased brand loyalty: A report published by Texas Tech University (Bell, 2013) shows brands who engage on social media channels enjoy higher loyalty from their customers. Another study (Baer, 2012) found 53% of Americans who follow brands in social media are more loyal to those brands.
- More opportunities to convert: Every post you make on a social media platform is an opportunity for customers to convert. When you build a following, not only will you have access to new customers, recent customers, and old customers, you'll be able to interact with all of them.
- Higher conversion rates: Studies have shown (Hubspot, 2012) social media has a 100% higher lead-to-close rate than outbound marketing, and a higher number of social media followers tends to improve trust and credibility in your brand, representing social proof. So, simply building your audience in social media can improve conversion rates on your existing traffic.
- Higher brand authority: Interacting with your customers regularly is a show of good faith for other customers. When people want to compliment or brag about a product or service, they turn to social media. The more people talking about you on social media, the more valuable and respected your brand will seem to users.
- Lower marketing costs: According to Hubspot (Kusinitz, 2014), 84% of marketers found as little as six hours of effort per week was enough to generate increased traffic. Six hours is not a significant investment for a channel as large as social media. Start small and you'll never have to worry about going over budget - once you get a better feel for what to expect, you can increase your budget and increase your conversions in kind.
- Richer customer experiences: Social media, at its core, is a communication channel like email or a phone call. Every customer contact you have on social media is an opportunity to publicly demonstrate your customer service level and enhance your relationship with your customers. It's a personal experience that lets customers know you care about them.
- Your competitors are already involved. Don't let your competitors reap all the benefits while you twiddle your thumbs. If somehow your competition isn't involved on social media, there's even more of a reason to jump in - the field is open!
- The sooner you start, the sooner you reap the benefits. Social media is all about relationship building, and it tends to grow exponentially. Your followers tell two friends, and their friends tell two friends, and so on...
- Potential losses are minimal. Realistically, you don't have anything to lose by getting involved in social media. The amount of time and money it takes to create your profiles and start posting is insignificant, compared to other marketing channels.
