Social media marketing is ideal for small business owners not able to carry out conventional marketing activities because of limited resources. It is defined as the ‘use of social networks or online collaborative media for marketing, communications, sales, public relations and customer service’. In South Africa, social networking sites such as Facebook, Twitter and MXit are consistently ranked in the top ten of the ‘most visited’ sites.
One of the most interesting studies in this area was conducted among small businesses in the United Kingdom (UK) and Australia. The study investigated the connection between operational practices and the high sales growth these businesses displayed. The results revealed that the relationships these small businesses had built with their clients, employees, suppliers and support networks through social media marketing were a critical factor in their success. Coopers and Lybrand found very similar results in their study conducted among 400 small businesses with high sales growth. Small businesses with strategic alliances experienced an 11% higher sales turnover than those not utilising network relationships.
In the new, connected millennium, the availability of social media platforms offers small business owners opportunities to expand their customer base at a fraction of the cost of above-the-line advertising, to gain insight into their customers and to build good relationships with them. Forming well-established partnerships could be of great value to the small business owner and could also increase profit margins.
Business owners wishing to capitalize on these opportunities need to ensure that they can successfully rise to the many challenges implicit in the digital arena. Certain key behaviours that need to change include the need to get closer to consumers, to engender bilateral conversations, to master the context of marketing messages, to make better use of consumer data and insight, and to build new and more collaborative relationships across the value chain.
Unlike their more traditional predecessors, social media are not merely digital platforms from which to showcase the business’s latest advertising campaign, to release a press statement or to tweet what you had for breakfast. The audiences have also changed: no longer just consumers of media and advertising, they are their creators, too.
In today’s increasingly fragmented and digital world, consumers are more involved in the purchase process than ever before and are more likely to search for additional information and evaluate all the options available to them before making a well-informed decision. In this new connected millennium, control is more firmly in the hands of the consumers. If they are not persuaded by the sales offering or are bored with the content presented to them, they will simply click away to another website!
Social media marketing programmes should focus on efforts to create content that attracts attention and encourages readers to share them with their own social networks. A message will spread from user to user and may resonate more effectively precisely because it comes from a trusted source (a peer), as opposed to coming from the business itself. To win the minds and hearts of contemporary consumers, more creative approaches are needed.
For starters, remember consumers no longer want passively to support a brand; they want to engage with it. Successful users of social media for marketing invite their consumers to become friends and partners in the business and aim to build trust relationships with them. Consumers want to understand the value of the products on offer and should be provided with opportunities to obtain more information, have their concerns addressed and share both positive and negative service experiences. Participation from both sides is thus a major factor for online success, and the more the business participates in the conversation, the more it stands to gain.
Business owners need to ensure that they understand the needs of their target audiences, know what appeals to them and are up-to-date with current trends and information in their specific area. Content should be updated on a regular basis and must include problem-solving ideas of benefit to the consumer. The key to an effective social media strategy is listening and an investment in listening and measurement tools ensures that consumers’ needs are understood and addressed.
Although all types of small businesses may benefit from social media marketing strategies, independent financial advisors, in particular, could consider this approach for their businesses; for example, a blog to advertise the advisor’s service and, consequently, create more brand awareness, could be used. Advisors could communicate the benefits of the latest insurance product developments (perhaps a sponsored link to an insurance company’s website), comment on market developments, provide tax and financial planning tips and effectively address generic concerns raised by clients on the web. Ultimately, satisfied clients will recommend the blog to their friends, offering the advisor further lead-generation opportunities.
In conclusion, there might be great income potential for independent financial advisors making use of social media marketing strategies in their businesses. These advisors will, however, need to ensure their marketing messages comply with the financial regulations and do not make promises that cannot be kept. The essence of a social media marketing strategy is to put the needs of the consumers first. Although business owners can expand their customer base through social media, they should do so off a basis designed to build trust, to strengthen their relationships with consumers and to offer them effective solutions that will add value to their lives and retain them as loyal customers.
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