Top 9 Ways How Social Media Impacts Your Business (2023)

The impact of social media on businesses, both positive and negative, is immense.

Do you agree? 90% of businesses agree to this.

Either you are a startup or a small business, whether you are an online store or an enterprise, social media is vital for your business marketing strategy.

Ambassador says 71% of consumers who have had a good social media service experience with a brand are likely to recommend it to others.

It shows the importance of social media in businesses. In order to maintain a competitive pace, businesses are bound to leverage popular social media platforms.

Social platforms help you connect with your customers, boost brand awareness, and increase your leads and sales. With close tofive billion people across the globe using social media, it’s no passing trend.

Why Social Media is Important for Business?

Social media has greatly transformed the business landscape. It is one of the most important aspects of digital marketing, which provides incredible benefits that help reach millions of customers worldwide.

If you are a CEO or a small business owner, it is very important to know why you need to be on social media and how it is going to affect your business.

There are several questions you must ask yourself before you plan your social media strategy

  • What are the channels where my customers are present?
  • What are the ways to target my audience on those channels?
  • What are my objectives and the RoI of the social media strategy?

So it is evident that how social media can have an immense impact on your business and can be one of the most powerful marketing channels to reach out to your audience.

In a nutshell, social media helps businesses in three key areas;

Brand building – Social media is one of the most profitable digital marketing platforms that boosts your brand visibility among potential customers, allowing you to reach a bigger audience. By applying a social media customer service strategy, you significantly increase your brand recognition.

Omni channel engagement – Research shows, 60% of US millennials expect consistent experiences when dealing with brands online, in-store, or by phone. Social media strategies boost user engagement across channels in order to engage customers and deliver better omni channel customer experience.

Business growth – Social interaction between businesses & customers is a growing trend that increases sales and improves brand loyalty. SMM report says, more than 65% of businesses are on social media to increase leads.

So, let’s look into the positive effects of social media on businesses.

(Video) Top 9 Ways How Social Media Impacts Your Business

Positive Effects of Social Media for Business

Social media impact businesses positively and offers an opportunity for your audience to find you on social media. It helps to reach to your targeted audience, stay engaged with them, and respond to their queries instantly. It is a great way to evaluate your competition by monitoring their social media pages.

Social media has multiple positive impacts on business in terms of brand recognition, customer engagement, revenue, and customer service. It also is a great tool to evaluate your competitors and how they are using social media for their growth.

Here are 9 positive ways of how social media impacts businesses.

#1. Social Media Adds a New Dimension to Your Omnichannel Customer Service

Today’s customers choose social media as the main source to interact with a brand as they get instant attention. Research says that 42% of consumers expect a response on social media within 60 minutes.

Social media is a powerful channel to engage customers who reach out to you through different social media channels such as Facebook, Twitter, LinkedIn, Instagram, Whatsapp to deliver a seamless omni channel messaging experience.

Top 9 Ways How Social Media Impacts Your Business (1)

Providing omni channel customer service is an important aspect of a business. However, it is even more important to use the right tools, system which can help your business to deliver an omni channel experience across the customer lifecycle.

In order to deliver omni channel customer service, you can use certain tools. One such tool is REVE Chat, which is a multi channel live chat platform that streamlines customer conversations across website, social, mobile and messaging apps to deliver great customer service and increase team productivity.

Sign up with REVE Chat today! Engage your customers across their preferred social channel and respond to their messages and comments instantly.

Social media customer service example – Nike

Nike followed an excellent customer service strategy. It has one of the strongest customer service accounts on Twitter. They feature a dedicated Twitter account,Team Nike, which provides support seven days a week and in seven languages.

Top 9 Ways How Social Media Impacts Your Business (2)

When a customer mentions Nike’s main twitter handle, @teamnike responds instantly. This shows how dedicated the brand is to solve their customers’ problems.

Best practices:

  • Pay attention to all customer service issues and be kind to them in all scenarios. Passive complaints that are left unaddressed can easily cause a rift between the vendor and the customer.
  • Manage your social conversations promptly in order to deliver superior customer service.
  • Enhance your customer experience by being available across all the touchpoints that customers prefer to contact you to deliver instant support.

#2. Social Media Helps to Reach Out to a Bigger Audience

Almost 90% of marketers say their social marketing efforts have increased exposure for their business, and 75% say they’ve increased traffic.It an ideal way to create brand awareness and stay in contact with your customers.

Social media platforms are becoming the main source for people to learn more about businesses – latest information about new products, services, advertisements, deals or promotions.

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Here are some tips to expose your brand to a broader audience.

  • Segment your audience – Prior heading up to the social platforms make sure that your target audience is on the platform or not. It’s not at all wise to blindly follow other brands.
  • Make use of visuals – Once you have segmented your audience make use of attractive visuals along with content to grab immediate attention and boost engagement.
  • Initiate conversations – Involve yourself in the social platforms not only by listening but also by building great conversations by tagging or mentioning others.
  • Measure your efforts – It is very important to measure your social activity by using external tools. Gain insights and channelize your efforts and strengthen your brand image.

The social channels allow sharing business news and even posting related photos or links to stories/studies in their industry. It also builds trust with its customers and showcases itself to a new demographic of potential clients. You can also use them to add value to your guerrilla marketing examplesin a subtle way.

Best Practices:

  • Identify your target audience, their patterns, behaviors and then choose the right social media channels for your business.
  • Social media is a place to forge connections and bring a voice to your brand. Ensure that your tone is consistent, friendly, and suits your business that you are trying to showcase.
  • Visual and engaging content is key. To publish relevant, quality content and involve your audience – ask questions, use polls, and host events.

#3. Social Media Creates Word of Mouth

Social media does, in fact, help to get the word out about your business. With the arrival of interactive and social media, the patterns, role, and impact of word of mouth have evolved. Due to which new online communities are shaped.

Such changes affected the ways businesses can leverage the power of word of mouth for marketing purposes and, vice versa, the impact of word of mouth on businesses. Research shows that 72% of people see online reviews in the same light as personal recommendations made by friends and family.

Great word of mouth marketing example – Threadless

Threadless is an online community of T-shirt designers and a platform where they assembled to submit and vote on T-shirt designs. The designers were paid 20% in royalties, and either Threadless gift cards or cash.

Top 9 Ways How Social Media Impacts Your Business (3)

The members were happy to promote their designs and bring more people to the site by good word of mouth.

Best Practice:

  • Offer an incentive such as a discount, a free product, an extended service to your customers so that they take their quality time to promote your business.

#4. Social Media Marketing (SMM) is Economical

Many businesses are jumping into the Social Media Marketing (SMM) bandwagon as its positive impact on brands and promises profitable success when done properly. Social media marketing techniques target social networks and applications to spread brand awareness.

Social media marketing is perceived as a more targeted type of advertising and therefore it is very effective in creating brand awareness. Social media engagement campaigns produce a lot of shares, generate more views and publicity for your business – all for a one-time cost.

Social media marketing campaigns usually center around:

  • Establishing a social media presence on major platforms
  • Creating shareable content and advertorials
  • Cultivating customer feedback throughout the campaign through surveys and contests

A single person sharing or re-tweeting a message from your company could reach hundreds or even thousands of people for virtually no cost! Businesses that miss out on this with social media strategies that don’t generate engagement are losing a major opportunity.

Best practice:

  • If you are a startup or small business social media marketing to promote your business and save the business money.

#5. Social Media Allows Collecting First-Hand Customer Feedback

Social media is a potent ingredient of customer feedback cocktail.

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Social media platforms allow collecting first-hand feedback from customers to improve brand image, reputation, and relationship with the customer. The customer must feel like they are heard, valued and this makes them happy.

So, respond to every post, comment, suggestion and make the best use of it for your brand development. Businesses that engage with customer service requests via social media earn 20% – 40% more revenue per customer.

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This will allow you to showcase just how much you care about providing a memorable experience and will ensure that no customer feedback goes unnoticed. And by monitoring social media for customer feedback and offering a response, you can drive real business results.

Best practices:

  • Respond even if the user has not directly tweeted at you or asked for help. When you answer brand mentions or comments it shows you are paying attention.
  • Promote your customers by retweeting a happily resolved support interaction. It is like giving your customers a big thank you.
  • Give your customer service team a public face. Use a team photo or an agent spotlight. It’s nice to connect the face of the brand with the names behind it.
  • Try to follow-up a resolved interaction with, “How is everything?”

#6. Social Media Improves User Engagement

No matter businesses are on social media or not, customers follow their social media accounts every day. With the average person spending just under two hours per day on social media, social media engagement is essential to make sure your brand is capturing enough attention.

Setting up a social media presence, building and engaging them effectively with quality content is a big effort. But the biggest benefit you can glean from your investment in social media is to reach out to your potential customers wherever they can be found across the globe.

Top 9 Ways How Social Media Impacts Your Business (5)

Social media engagement is positive as the reputation it generates for your brand but on the other hand, a single negative tweet can bring bad publicity overnight, which is difficult to reverse. Below are a few best practices for engaging users.

Best practices:

  • Keep your brand at the top of the newsfeed by posting witty and engaging content regularly.
  • Images increase the interaction rates so use images.
  • Try being personal with your audience. Make them feel there are real people behind the brand.

#7. Social Customer Service is the New Marketing

Providing stellar customer service is likely already a top priority for every business. But along with the two-way communication that social media provides, it also offers a unique opportunity to step up your customer service game and provide instant gratification to your target audience.

WhatsApp, for example, is the most popular channel for customer service on a global front. The numbers say there are more than 1.5 billion monthly active users, sharing more than 60 billion messages every day, a huge amount of on-platform activity.

WhatsApp Business app, launched by Whatsapp enables business users to “interact with customers easily by using tools to automate, sort, and quickly respond to the messages”.

Hellmen is one of the best examples to show the impact of social media on business

Hellman wanted more Brazilians to cook using their mayonnaise and they thought of an interesting campaign using WhatsApp.

Top 9 Ways How Social Media Impacts Your Business (6)

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Source: Hellmen

The campaign had the option to connect with a chef through WhatsApp. Once connected with the chef, they only had to click a picture of their fridge and share. Now the chef would plan a recipe out of it and cooked the meal together, staying connected through WhatsApp.

Social media best practices:

  • You should be prompt in responding to online reviews. Customers share their positive as well as negative feedback over social media. Respond to your social media comments quickly. You need to respond to them as priority else it will affect your brand image.

#8. Social Media Can Be a Driving Force of Growth Tools

Social media offers opportunities for brands to increase conversions due to the interaction that they have with customers. When a brand chooses a proactive social media marketing approach, it will strengthen its marketing strategy.

Hubspot research social media marketing has a 100% higher lead-to-close rate than outbound marketing. This data proves social media marketing critical for all brands, big or small, and especially those who are trying to increase sales revenue.

Twitter is a good example of this. According to MediaBistro, 67% of Twitter users are more likely to buy from brands that they follow. Besides, 42% of consumers learn about the products and services they are interested in through Twitter. This type of outreach cannot be ignored.

Best practices:

  • Use targeted social media listening to understand what is happening in your industry.
  • Get engaged in social selling (social selling combines the elements of social listening, social media lead generation, and sales practices).

#9. Social Media Boosts Your Brand Loyalty

“A brand is nothing but an expression of the customer’s loyalty and trust.”

Building and maintaining brand loyalty is one of the central themes of every business. Social media helps you to build relationships with your customers through social media, which increases loyalty and advocacy.

Brand loyalty matters due to the below reasons:

  • Resistance in competition – In this competitive market, brand loyalty is hard to come by. Customers have multiple options accessible that can lose them easily. Perception of your brand builds new customers but loyal customers add real value.
  • Meaningful engagement – Loyal social media followers are more likely to interact with your posts and create meaningful conversations. Real engagement is more valuable to your online image.
  • Brand advocacy – Loyal social media followers are high potential brand advocates. They’re very likely to talk about your brand positively, even without persuasion.

Developing brand loyalty ensures long term engagement over social media. Research shows, 66% of users between the ages of 18 and 24 years old are more loyal to the brands they follow on social media.

Best practices:

  • You should create a smart social media strategy that comprises a cohesive plan to keep up with your competition.
  • Share good quality content to inspire brand loyalty. Visual content gets easily noticed. So, use infographics, videos, screenshots, graphs, etc. to make content more appealing.
  • Ensure that you are not sidelining interactions as followers like humanized interactions, not bots or automated content.

Final Thoughts

The use of social media platforms to reach more customers, engage with your audience, and build brand awareness are some of the positive impact of social media on business. However, to avoid its negative aspects of social media on your business you can follow the suggested tips and be careful when sharing content over social media.

REVE Chat’s omnichannel customer engagement platform helps to streamline all conversations across all business social channels and deliver consistent real time service. Sign up Now and increase satisfaction of your social customers.

FAQs

What are the impacts of social media on business? ›

Social media can help you engage with your customers and find out what people are saying about your business. You can also use social media for advertising, promotional giveaways and mobile applications. Social media can help your business to: attract customers, get customer feedback and build customer loyalty.

What are the 5 main reasons businesses use social media? ›

5 Reasons your business needs social media
  • But why? Well, it's quite simply the trend that's not disappearing. ...
  • Improved Brand Awareness. ...
  • Cost-effective. ...
  • Engage with Your Customers. ...
  • Brand Loyalty. ...
  • Better Customer Satisfaction.

What are 3 risks of social media for business? ›

4 Key Areas of Risk affected by Social Media
  • Reputational Risk. A company's reputation and brand are an asset and when impacted negatively, that organisation's customers will no longer wish to do business with them. ...
  • Information Security Risk. ...
  • Regulatory Risk. ...
  • Operational Risk.
14 Jan 2016

What are the 3 benefits of social media marketing? ›

Increase trustworthiness and brand recognition. Increase levels of customer service and satisfaction. Foster online community and tell authentic stories. Become part of the zeitgeist.

What are 7 advantages of social media? ›

7 Benefits of Social Media You Can't Afford to Ignore [...
  • It's cost-effective.
  • It provides authenticity.
  • It compliments advertising.
  • It fosters your creative voice.
  • It provides a forum for customer care.
  • It builds engaged communities.
  • It helps search engine optimization.
12 Oct 2020

What are the 5 advantages and disadvantages of social media? ›

  • Educational process. ...
  • Online marketing. ...
  • Information spreads fast. ...
  • It lets us share anything with others. ...
  • It helps you to achieve your goals. ...
  • Privacy problems. ...
  • It changes lifestyle habits, and it is sleep disruption. ...
  • Lacks emotional connection.
19 Jan 2019

What are the 6 ways companies use social media? ›

The six types of interactions users have with businesses on social media are discover, research, engage, purchase, support, and promote.

What are the 4 main reasons you use social media? ›

Billions of people around the world use social media to share information and make connections. On a personal level, social media allows you to communicate with friends and family, learn new things, develop your interests, and be entertained.

What are the 10 benefits of marketing? ›

Top 10 Advantages of Marketing
  • Marketing Widens the Market: ...
  • Marketing Facilitates Exchanges in the Ownership and Possession of Goods and Services: ...
  • Marketing Helps in Optimal Utilization of Resources: ...
  • Marketing Accelerates Other Activities: ...
  • Marketing Increases the National Income: ...
  • Marketing Raises the Standard of Living:

What are the 7 benefits of marketing? ›

7 Ways We All Benefit from Sales Marketing Alignment
  • A Clearer Understanding of the Customer. ...
  • More Feedback from Customers. ...
  • Better Implementation of Customer Feedback. ...
  • Better Support from Business Leaders. ...
  • Better Engagement Between Sales and Marketing. ...
  • A More Well-Defined Strategy. ...
  • Clearer Mapping of the Customer Journey.
13 Feb 2018

What are the positive effects of social media? ›

The positive aspects of social media

Social media enables you to: Communicate and stay up to date with family and friends around the world. Find new friends and communities; network with other people who share similar interests or ambitions. Join or promote worthwhile causes; raise awareness on important issues.

What are 5 dangers of social media? ›

The dangers
  • cyberbullying (bullying using digital technology)
  • invasion of privacy.
  • identity theft.
  • your child seeing offensive images and messages.
  • the presence of strangers who may be there to 'groom' other members.

What are the 13 types of social media? ›

  • Social Networks. The primary goal of social networks is to help you connect with people, build communities and groups, share ideas, interests, and information. ...
  • Messaging Apps. ...
  • Photo & Media Sharing Apps. ...
  • Blogging & Publishing Networks. ...
  • Interactive Apps. ...
  • Discussion Forums. ...
  • Bookmarking & Content Curation. ...
  • Review Networks.
29 Jul 2021

What are 3 negative things about social media? ›

However, social media use can also negatively affect teens, distracting them, disrupting their sleep, and exposing them to bullying, rumor spreading, unrealistic views of other people's lives and peer pressure.

What are the 5 disadvantages of media? ›

Disadvantages of media
  • It contributes to individualism. ...
  • As a consequence, it is affected by social interactions with friends, relatives and neighbours.
  • Some content in the media is not appropriate for children.
  • It can be tough to restrict children's access to certain stuff.
  • Papers are geographically limited.

What are the 5 ways of social media marketing? ›

5 Tips to Successful Social Media Marketing
  • Create a Strategy. Each platform needs its strategy. ...
  • Be Consistent. While posting consistency depends on the platform, posting content regularly is always a good rule of thumb to follow. ...
  • Create Engaging & Interesting Content. ...
  • Engagement. ...
  • Track and Analyze Metrics.
1 Mar 2022

What are the 10 steps to a successful social media strategy? ›

A 10-Step Checklist for Social Media Strategy Success
  1. Define Clear Goals. This is the foundation of your social media management or campaign strategy. ...
  2. Get To Know Your Audience. ...
  3. Choose the Right Platforms. ...
  4. Create a Content Bank. ...
  5. Identify Keywords and Hashtags. ...
  6. Create a Content Schedule. ...
  7. Set Up Social Tools. ...
  8. Set Your Analytics.
15 Feb 2018

Why is social media important for business? ›

The business-boosting benefits of social media.

Social media is an easy, affordable way to reach a wide audience. Posting on social media can help build your business's brand and drive traffic to your website. You can use social media to engage directly with customers and learn what they want.

How do businesses use social media? ›

How To Use Social Media For Business
  1. Work With Influencers. ...
  2. Develop Affiliate Partners. ...
  3. Run Competitions. ...
  4. Go Live.
  5. Use Stories. ...
  6. Run Ads To Your Ideal Audience. ...
  7. Learn From Your Analytics. ...
  8. Make Social Media An Essential Part Of Your Business.
11 May 2020

Why is social media a great tool for your business? ›

Social networks allow you to interact directly with customers and fans, and likewise give them the chance to interact directly with your brand. Unlike traditional media, which offers only one-way communication, social media is a two-way street.

What are the 9 functions of marketing? ›

How Many Marketing Functions are There?
  • Marketing information management. ...
  • Promotion. ...
  • Selling. ...
  • Pricing. ...
  • Product management. ...
  • Financing. ...
  • Distribution.

Why is social media important today? ›

Why is social media important? Social media is important because it allows you to reach, nurture, and engage with your target audience — no matter their location. When a business can use social media to connect with its audience, it can use social media to generate brand awareness, leads, sales, and revenue.

What are the 4 importance of marketing? ›

The importance of marketing for your business is that it makes the customers aware of your products or services, engages them, and helps them make the buying decision. Furthermore, a marketing plan, a part of your business plan helps in creating and maintaining demand, relevance, reputation, competition, etc.

What are the 5 key benefits of business strategy? ›

5 key benefits of business strategy
  • 1 – Establishing direction.
  • 2 – Making wise decisions.
  • 3 – Avoid competitive convergence.
  • 4 – Measure success.
  • 5 – Increase satisfaction.

What are the 5 most important aspects of successful marketing? ›

5 Most Important Aspects of Successful Marketing
  • Define your target audience. Whether you launch a new campaign or simply want to set up your newsletter, you need to specify who your target audience. ...
  • Care about what your customers care about. ...
  • Become a resource. ...
  • Get your reviews up. ...
  • Be accessible online.
24 Jul 2015

What is the main benefit of social media? ›

Social networking services can help young people develop their interests and find other people who share the same interests. They can help introduce young people to new things and ideas, and deepen appreciation of existing interests.

What are the positive benefits of social media? ›

Social media may provide individuals with a platform that overcomes barriers of distance and time, allowing them to connect and reconnect with others and thereby expand and strengthen their in-person networks and interactions.

What are the benefits of social media today? ›

In general, social media groups can provide: a sense of belonging and community. access to support from like-minded individuals. an appreciation of different perspectives.

Why Your business Needs social media? ›

Social platforms can help you connect with your customers, increase awareness about your brand, and boost your leads and sales. But you need to start with an always-on mindset and a solid content marketing strategy. Quick Takeaways: Social media is an effective way to reach new audiences with engaging content.

What is the impacts of social media? ›

However, multiple studies have found a strong link between heavy social media and an increased risk for depression, anxiety, loneliness, self-harm, and even suicidal thoughts. Social media may promote negative experiences such as: Inadequacy about your life or appearance.

What are the two benefits of social media marketing? ›

Some of the benefits you'll learn about include: Growing your brand awareness: Social media marketing will make it easy to spread the word about your products and mission. Increasing your traffic: Using social media and linking it to your website will increase your traffic tremendously.

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