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The Impact of Social Media on Small Businesses

Social media has an immense impact on businesses, both positive and negative. In order for businesses to maintain a competitive pace, they are bound to leverage popular social media platforms. Companies are now able to leverage these platforms to showcase useful information and advertise their products and services leading to business growth. On the other hand, social media platforms can also impact your business negatively leading to losses.

In this article, we will focus on impact of social media on businesses. 

Positive Impact of Social Media on Businesses

The positive impacts of social media have greatly transformed the business landscape. Taking your business on social media is a great step. It is because social media is one of the most powerful marketing channels to reach your audience. The following are positive impacts of social media for business:

1. Social Media Helps Businesses Reach Out to a Bigger Audience

Social media marketing is an ideal way to create brand awareness. It also helps businesses stay in touch with their customers. Many people are using social media to learn more about businesses through advertisements, learn how new products and services work, look for new deals and promotions, etc.

Before taking your business on social media, make sure that your target audience is on that particular platform. It is also best to involve yourself in the conversations going on on social media platforms.

2. Helps Businesses Provide Omni Channel Customer Service

Many people are using social media to interact with their favorite brands because they get instant attention. As such, businesses are using social media channels to engage with their customers as these channels help to deliver a smooth omnichannel messaging experience.

To deliver Omni channel customer service, you can use tools like REVE Chat that will help streamline customer-client conversations across channels. This in turn increases team productivity. You need to be available across all channels to deliver instant support. Also, manage your social media conversations promptly to avoid leaving complaints and queries unaddressed.

Read also: Video marketing ideas for small businesses. 

3. Social Media Boosts Brand Loyalty

Social media plays a huge role in boosting your brand loyalty and advocacy. It will help to build relationships with your customers for the long term. 66% of social media users aged between 18 and 24 years are more loyal to the brands they follow on social media. You need to share high-quality and catchy content to inspire brand loyalty.

4. Increase Website Traffic

Sharing engaging posts and videos of your products and services on social media will help to attract new customers to your business. It is a best practice to share web content frequently to drive more traffic to your website. When many people are visiting your website, the more they are learning about your products and services. This is most likely to convert to sales.

Read also: How to start an online business in Kenya.

5. Enhances Business Growth

Meaningful social media interaction between businesses and customers increases sales which in turn leads to business growth. When you share engaging posts and videos, take part in meaningful conversations with your audience, and respond to comments and feedback promptly, you increase your sales leading to business growth.

6. Helps in Collecting First-Hand Customer Feedback

Social media platforms help businesses collect first-hand feedback from customers which they can use to improve their services and products, improve their relationship with their customers, improve brand image, and also improve their reputation. As such, it is important to respond to every suggestion, comment, and post.

7. Excellent Marketing Strategy for your Business

Another positive impact of social media on small businesses is that it helps to get the word of mouth out about your business. There is a high probability that when someone sees something about your business online, they will tell their friends and family about it. This in itself is an efficient marketing strategy.

Negative Impacts of Social Media for Businesses

Just the same way social media has positive impacts on businesses, it also has negative impacts. Some negative impacts of social media for small businesses include the following:

1. Difficult to Erase the Effects of an Offensive Post

Any time your brand shares an offensive tweet or post on social media, your audience will always remember it. Customers might shun your brand because of such blundersome activities leading to losses.

2. Getting Negative Feedback, Information Leaks, or Hacking

Businesses on social media sometimes have no way of preventing negative feedback from customers. This feedback may be genuine or malicious. When other customers see this feedback, they may shun your brand leading to losses.

Social media accounts are also prone to hacking. Hackers might access your account and use it to their advantage and in most cases, they use the information they access to bring your business down.

Read also: Why digital marketing is important for small businesses. 

3. Requires Regular Monitoring

A social network requires much time and effort to maintain. The time and effort you would have used for other productive business activities will instead be used to monitor your social media regularly.

4. Risks of Getting False or Misleading Claims on your Social Media

Social media poses the risk of false or misleading claims made through social media. If the comments or claims made are false and they end up affecting competitor products or services, you could be fined.

Summary of The Impact of Social Media on Small Businesses

The use of social media has helped many businesses reach more customers, engage better with their audience, and build brand awareness. It can also impact your small business negatively in that it poses risks of misleading information from your followers, it needs active daily monitoring, the risks of hacking, etc. 

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