Why Should I use Social Media for my Small Business?

Five years ago, having an online presence for your small business might have just been an optional way to attract consumers.  Now, in 2014 it is almost mandatory that you have some way of reaching customers on the internet or else you face the risk of losing potential consumers.

In marketing, we use a 5 step process to describe how consumers make purchase decisions.  This process is illustrated below.

The way that consumers navigate through this process today is much different than the way they navigated it twenty years ago.  In 1994, (20 years ago) consumers might recognize a need for your product or service through a commercial on TV or by word of mouth from a friend.  The consumer would then ask friends about the product, go to your store to find out more about your product/service, or they might call other businesses and ask about the product/service.  When evaluating alternatives, the consumer could really only base their decision about what their friends had said about the product, what they learned during their information search, or in some cases what they read in magazines or newspapers. If the consumer ultimately decided to make their purchase from your business, they would have to pay you in person or with a mailed check and after they made the purchase, they would tell their friends about their purchase.

Now in 2014, consumers still use the same 5 step process, but now they have access to an infinite amount of information to use when making a purchase decision.  Today, consumers might recognize a need online from an ad or from something their friend shared on social media.  The consumer can conduct their entire information search online without even getting up from the couch by reading product reviews from total strangers, chatting with friends online, and reading product descriptions online.  They can evaluate alternatives based off of online ratings from past customers. They can choose to purchase the product/service from you or they can can complete the transaction online with a credit card or a Paypal account, and once the purchase is done, they can post about the experience online for other potential consumers to see.

Online reviews for a Callaway Driver

Source: http://www.amazon.com/Callaway-RAZR-Graphite-9-5-Trinity/dp/B009TLZJ48/ref=sr_1_1?ie=UTF8&qid=undefined&sr=8-1&keywords=callaway+driver#cm_cr_dpwidget

The power has definitely shifted to the consumer. Search the internet for your small business.  What pops up first?  Is it something that you want people to see? Does your business even show up in the results?  

You are not the first person to search for your business online.  Even if you don't have a social media profile or a website, chances are you already have an online presence.  Your customers may have already talked about you and told their friends about their experience with your business.  

Creating an online presence for your small business can help you manage what potential customers see about you when they search for your business online.  It can help you interact with consumers online and maybe give them that extra push they need to purchase from you. But most importantly, it will let you see what people are saying about your business.

Before you start creating a profile on all of the social media platforms, it is important to have a strategy.  You have to decide what goals you want to accomplish before jumping in to social media.  For example, if you are the owner of a local septic tank company, you probably shouldn't create an Instagram account because most people don't want to look at pictures of septic tanks.  Instead, you could manage a website or a profile on another platform where consumers are searching for your service.  

The important thing to remember is that there is more to social media than creating a Facebook page. This blog will discuss various social media strategies and provide you with the tools you need to employ the best way to manage your online presence.

-JS