Social Media: A Major Component of Today’s Business Strategy

Social media is all about connections – searching for them, establishing them, and maintaining them. Business, too, is very much about the search, the establishment, and the maintenance of client and sales leads. It’s a natural progression for businesses to use social media as a way to reach customers and increase revenue. Now more than ever, businesses are effectively adapting social media as an increasingly larger component of their overall marketing strategy.

Consider these statistics:

• According to a recent blog post on The CMO Survey, executives reported 7.1% of the overall marketing budget for their company was spent on social media. Over the next five years, this number is expected to increase to 17.5%.
• Marketwatch.com reported a recent survey by Socialware revealed that in 2010 only 57% of respondents knew if their company had a social media policy whereas just one year later, that number rose to 80%.
• Of the respondents to the 2011 Social Media Marketing Industry Report, 72% felt social media increases website traffic, 62% said social media improved search rankings, and 58% of small business respondents felt social media reduced marketing costs.
•  In a group of statistics presented at AG Beat, 47% of all Americans use at least one social media site – up from 26% just three years ago.

Why Social Media?

Social media use by businesses is on the rise for several reasons. Customers want to feel a personal connection with their favorite brands of products and services, and a social media platform gives them just that. Social media provides a user-friendly forum for questions and concerns. A business can then quickly and easily respond. In turn, this action strengthens that connection and improves customer service.

Social media platforms are also an easy and effective way for businesses to gather customer feedback on new and existing products and services. This feedback can also be used to assess the needs and wants of a company’s target market so adjustments to products and services can be made accordingly. The cost effectiveness of social media has been proven again and again. Startup costs are extremely low and even free in many cases. Businesses commonly opt to hire a firm to manage their social media platform, but that investment is well worth the return. The connection social media forges between a company and its clients serves to build trust, which along with elements, such as branding and a good reputation, is invaluable.

Your Social Media Strategy

Has the use of social media increased as a part of your business’s marketing strategy and, if so, how much? Share your thoughts and experiences in the comments section below. If your company is new to social media and needs help getting started, please contact us to get started.