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Social Media Adoption Brings New Customers To Small Businesses

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The third wave of the Small Business Success Index, by Network Solutions and the University of Maryland’s Robert H. Smith School of Business, reports social media adoption by small businesses has doubled from 12% to 24% in the last year. Small businesses are increasingly investing in applications including blogs, Facebook and LinkedIn profiles.

Small Business Social Media Sources and Usage

Social Media Exposure | % of Small Businesses Using

Company page on social networking site 75%

Post status updates and/or articles of interest on social networking sites 69%

Build network through sites like LinkedIn 57%

Monitor positive/negative feedback about own organization on social networks 54%

Have blog on areas of expertise 39%

Tweet about area of expertise 26%

Use Twitter as customer service channel 16%

Other 8%

Source: SBSI/NetSolutions, February 2010

Key social media usage highlights (% of respondents)

  • 75% surveyed have a company page on a social networking site
  • 61% use social media for identifying and attracting new customers
  • 57% have built a network through a site like LinkedIn
  • 45% expect social media to be profitable in the next twelve months

Dr. Alan Glazier, CEO and Founder of an eye and vision care center, said “… I was forced to consider alternative options to keep my business visible… with a very small investment in social media marketing, I was able to generate new business opportunities… (and) most importantly, my marketing budget has been reduced by more than 80%… ”

61% of the respondents use social media to identify new customers. The biggest expectation small business owners have from social media is expanding external marketing and engagement including identifying and attracting new customers, building brand awareness and staying engaged with customers.

50% of small business social media users say it takes more time than expected. While social media adoption has doubled in the last year, there are still some roadblocks to small businesses fully exploiting its potential. Another 17% feel that social media gives people a chance to criticize their business on the Internet. Related to this, only 6% feel that social media use has hurt the image of the business more than helped it.

Janet Wagner, director of the Center for Excellence in Service at the University of Maryland, says that “Social media levels the playing field for small businesses… ”

Other key findings from the December 2009 Small Business Success Index:

Small businesses experience positive effects from the economic downturn:

  • 72% have found ways to operate more efficiently (up significantly from 66% in June)
  • 47%have been led to find new products and services that benefit customers
  • 43% have become better teams as hard times force people to work together

Building online presence continues to be key focus for small businesses:

  • Company Web sites seem to be the top technology investment in the next two years, with small businesses either adding new features/functionality to their existing Web sites or building one from scratch
  • The ability to showcase their products and services online to attract new customers is second in the hierarchy of technology investments
  • Social media investments rank third in small business investments to be made in the next two years

Customer service the biggest strength of small business owners:

  • Small businesses are highly successful at answering customer questions, ensuring customer satisfaction, showing empathy, providing consistent service, resolving problems and winning repeat business
  • Four of the six customer service dimensions have gotten stronger compared to a year ago, and one of these, ensuring customer satisfaction, is significantly higher

Connie Steele, Director at Network Solutions, concludes that “… social media can be the best friend for small business owners who constantly seek new ways to maximize productivity while keeping costs low… ”

Source: Jack Loechner

Blogging loses appeal for US teenagers

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A U.S. study has indicated that US teenagers are losing interest in blogging and switching to shorter and more mobile forms of communication.

Blogging loses appeal for US teenagers - But teens are not using Twitter in large numbers. While teens were bigger users of almost all other online applications, Twitter was an exception, the study found.

Blogging loses appeal for US teenagers – Facebook and Twitter fall to the bottom of the list. Only 19% believe that posts from friends influence them to make a purchase, and 11% cite posts from brands.

The number of 12 to 17-year-olds in the US who blog has halved to 14% since 2006, according to a survey for the Pew Internet and American Life Project. It suggests they prefer making short postings on social networking sites, and going online on mobile phones.

But the study also found a modest rise in blogging by those aged 30 and older. The increase from 7% in 2007 to 11% in 2009 is believed to be responsible for the prevalence of blogging within the overall adult internet population remaining steady at roughly 10%.

Micro-blogging

The study released on Wednesday found that blogging had steadily declined in popularity among both teens and young adults to 14%.

As the tools and technology embedded in social networking sites changed, and use of the sites continued to grow, young people appeared to be exchanging “macro-blogging” for “micro-blogging” with status updates, it concluded.

Amanda Lenhart, a senior researcher for Pew and the lead author of the study, told the Associated Press that the ability to do status updates had “kind of sucked the life out of long-form blogging”.

More young people – 55% of 18-29 year-olds and 27% of 12-17 year-olds – were also accessing the internet from their mobile phones, increasing the need for brevity. One student said teenagers had lost interest in blogging because they needed to type quickly and “people don’t find reading that fun”.

But teens are not using Twitter in large numbers. While teens were bigger users of almost all other online applications, Twitter was an exception, the study found.

Ms Lenhart doubts that blogging will disappear. She believes those who blog for personal reasons will instead focus more often on important events such as a wedding, a trip or the birth of baby.

Source: BBC