Top 9 Ways How Social Media Impacts Your Business (2022)

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.

Top 9 Ways How Social Media Impacts Your Business (4)

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)

(Video) TOP 9 small business ideas for 2022

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 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.

What are the 4 ways that businesses can use social media? ›

Social media can help your business to:
  • attract customers, get customer feedback and build customer loyalty.
  • increase your market reach, including international markets.
  • do market research and reduce marketing costs.
  • increase revenue by building customer networks and advertising.
  • develop your brand.
2 May 2022

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

5 Reasons Small Businesses Use Social Media
  • Social media can reduce your overall marketing costs. Social networks are a cost-effective way to get your small business in front of both your current customers as well as prospective customers. ...
  • Offer better customer service. ...
  • Make yourself visible. ...
  • Build loyalty and trust.
6 Mar 2019

What is the impacts of 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. The risks might be related to how much social media teens use.

How can social media improve business? ›

Here are some marketing tips for social media success:
  1. Identify the right social media channel.
  2. Make the most of live videos.
  3. Create your brand's story.
  4. Leverage user-generated content.
  5. Use social-friendly images.
  6. Use Instagram for posting ads.
  7. Use relevant hashtags.
  8. Utilize the power of employee advocacy.

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

Why Your business Needs social media? ›

Social media marketing help business owners keep their clients updated about new launches, company policies and also team activities. Online social networking gives you a chance to build narration to capture your customers' interest. Each Facebook post and tweet can share company values, ethics, and much more.

How do businesses use social media wisely? ›

Ten tips for using social media
  1. Choose your platform wisely. Before setting up a profile you should research the platform. ...
  2. Plan, plan, plan. Develop a plan for how you intend to use social media. ...
  3. Measure performance. ...
  4. Let others know. ...
  5. Look professional. ...
  6. Add value for your customers. ...
  7. Be consistent. ...
  8. Find out what works for you.

How social media can give positive and negative impact to business? ›

Positive publicity can increase your sales, while negative publicity can tarnish your company's image. Regardless, social media has become one of the leading channels for marketing and advertising, and its use has become a necessity if you want your business to remain visible and stay competitive.

What are the pros and cons of social media? ›

Top 10 Advantages and Disadvantages of Social Media
Pros of Social MediaCons of Social Media
Social Media Can Reach Large AudiencesSocial Media Causes Sleep Issues
Government Benefits from Social MediaSocial Media Cause Depression and Loneliness
Entertainment with Social MediaSocial Media Causes Distraction
7 more rows
14 Jun 2022

What are the 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's the importance of social media? ›

In today's society, the use of social media has become a necessary daily activity. Social media is typically used for social interaction and access to news and information, and decision making. It is a valuable communication tool with others locally and worldwide, as well as to share, create, and spread information.

What are 5 negative effects of social media? ›

7 Negative Effects of Social Media on People and Users
  • Depression and Anxiety. Do you spend several hours per day browsing through social media? ...
  • Cyberbullying. Image Credit: HighwayStarz/Depositphotos. ...
  • FOMO (Fear of Missing Out) ...
  • Unrealistic Expectations. ...
  • Negative Body Image. ...
  • Unhealthy Sleep Patterns. ...
  • General Addiction.

What social impact means? ›

In essence, the definition of social impact means any significant or positive changes that solve or at least address social injustice and challenges. Businesses or organizations achieve these goals through conscious and deliberate efforts or activities in their operations and administrations.

What is the impact of social media on privacy? ›

However, as social media has grown over the years, so has the risk of data breaches. As more and more information gets placed online, there is an increased danger of hackers, companies, and malicious interlopers mining your data in ways that undermine personal privacy. And in some cases, your data is outright stolen.

How can I improve my business? ›

Although growing your small business will take time and energy, there are 10 strategies you can use to help accelerate business growth.
  1. Do Your Research. ...
  2. Build a Sales Funnel. ...
  3. Increase Customer Retention. ...
  4. Participate in Networking Events. ...
  5. Practice Corporate Social Responsibility. ...
  6. Form Strategic Partnerships.

What are example of social media? ›

The largest social media networks include Facebook, Instagram, Twitter, YouTube, and TikTok. Social media typically features user-generated content and personalized profiles.

How many people use social media for business? ›

There are more than 3.5 billion active social media users today. There are more than 50 million small businesses using Facebook Pages to connect with customers. According to 90% of marketers, their social media marketing efforts have increased the exposure of their business, and 75% say they've increased traffic.

What are the most essential 7 M's in marketing? ›

Seven cyclical elements to a successful integrated marketing program are: mindset, measure, model, map, make, modify, and monetize.

Why social media is the best way to advertise? ›

Social media advertising is critical because it allows you to hyper-target specific users, build an audience database and directly track your return on investment. Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies.

What is the best way to use social media? ›

Here are three easy ways to use social media constructively:
  1. Connect with loved ones. Social media is a great way to stay in touch with your friends and family, whether they live nearby or across the globe. ...
  2. Follow and share inspiring stories. ...
  3. Create a balance.
19 Jun 2019

What is the role of social media in marketing? ›

Social media serves the purpose of making it easier for consumers to find out and distribute information about different brands, products and services. A significant percentage of customers that relies on the internet to search for products have discovered specific companies through social media.

What are the five strategies for safer social networking? ›

Five tips that will help you stay safe in social media:
  • Be cautious and selective when accepting new requests. ...
  • Manage your privacy settings. ...
  • Don't give out personal information. ...
  • Change your passwords frequently. ...
  • Close old accounts that you don't use anymore.
24 Jun 2021

How social media affects business reputation? ›

A negative reputation from inappropriate social media use can have a negative effect on the company's revenue, brand value, trust, goodwill, and ethical reputation. For instance, in 2018, Pentland Analytics found that companies facing a reputation loss due to social media experienced a value decline of 30%.

What are the impact of social media in economy? ›

The author found that social media has increased opportunities for long-distance business and may increase domestic GDP levels. Social media opens up a new way of living and doing business, and it will continue to develop in the future.

How does social media impact on sales? ›

Social media statistics show that 93% of marketers with social media sites reported that their social media efforts had increased traffic to their websites. And 82% said their social media efforts had increased sales. Additionally, 67% of marketers with blog networks noted that these initiatives had increased sales.

Is social media helpful or harmful? ›

Although there are important benefits, social media can also provide platforms for bullying and exclusion, unrealistic expectations about body image and sources of popularity, normalization of risk-taking behaviors, and can be detrimental to mental health.

What is the impact of social media in personality development? ›

The four main social media factors that influence personality development include (i) Culture of Popularity, (ii) Unreal Standards of Appearance, (iii) Approval Seeking Behavior, and (iv) Prevalence of Depression and Anxiety.

What is the impact of social media essay? ›

If the use of social media is not monitored, it can lead to grave consequences. It is harmful because it invades your privacy like never before. The oversharing happening on social media makes children a target for predators and hackers. It also leads to cyberbullying which affects any person significantly.

How many people use social media? ›

4.70 billion people around the world now use social media, 227 million new users have come online within the last 12 months. The average daily time spent using social media is 2h 29m.

Is social media making us social? ›

Studies have shown that people who spend a lot of time on social media are at least two times more likely to feel socially isolated. Social media use displaces more authentic social experiences because the more time a person spends online, the less time there is for real-world interactions.

How can social media Change Your life? ›

Social media has made it possible to get an inside perspective with very little effort. In addition to getting a birds-eye view of other places, the live feed feature of social media has also broken down barriers and made it possible to virtually attend events around the globe.

What are the 3 main purposes of social media? ›

People are using social media for a variety of purposes. The four main uses of social media form the acronym SLIM: sharing, learning, interacting, and marketing.

What are the three main purposes of social media? ›

What are the three main purposes of social media? Informing, persuading, and building relationships of trust.

How social media can give positive and negative impact to business? ›

Positive publicity can increase your sales, while negative publicity can tarnish your company's image. Regardless, social media has become one of the leading channels for marketing and advertising, and its use has become a necessity if you want your business to remain visible and stay competitive.

What is the role of social media in business? ›

Increasing Brand Value and Giving Huge Recognition

Social media plays a vital role in business development in such a way that it helps increase brand value and gives business huge recognition. Through social media, businesses are able to showcase their products and services.

What are the advantages and disadvantages of social media in business? ›

Social media can be a useful tool for businesses, bringing advantages such as engaging with your audience and boosting website traffic. However there can also be disadvantages, including the resources required and negative feedback.

What are the impact of social media in economy? ›

The author found that social media has increased opportunities for long-distance business and may increase domestic GDP levels. Social media opens up a new way of living and doing business, and it will continue to develop in the future.

What are the benefits of social media? ›

Here are five benefits of using social media:
  • Build relationships. Social media is not just about brands connecting with their customers. ...
  • Share your expertise. Social media gives you an opportunity to talk about what you know and what you want to be known for. ...
  • Increase your visibility. ...
  • Educate yourself. ...
  • Connect anytime.
22 Apr 2014

What are the benefits of social media marketing? ›

5 benefits of social media marketing:

Increase levels of customer service and satisfaction. Foster online community and tell authentic stories. Become part of the zeitgeist. Increase revenue with social commerce.

How does social media impact on sales? ›

Social media statistics show that 93% of marketers with social media sites reported that their social media efforts had increased traffic to their websites. And 82% said their social media efforts had increased sales. Additionally, 67% of marketers with blog networks noted that these initiatives had increased sales.

What are the benefits of social media use for small businesses? ›

10 Benefits of Social Media For Small Businesses
  • Valuable customer insights. ...
  • Increase brand awareness and loyalty. ...
  • Run targeted ads with real-time results. ...
  • Generate higher converting leads. ...
  • Provide rich customer experiences. ...
  • Increase website traffic and search ranking. ...
  • Find out what your competitors are doing.

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 is the role of social media in development? ›

Social media enhances the ability of poor populations to voice their own concerns and priorities, and publicize their own vision and purpose. Self-advocacy is a form of empowerment not always delivered through traditional development projects.

Is social media beneficial or harmful? ›

Although there are important benefits, social media can also provide platforms for bullying and exclusion, unrealistic expectations about body image and sources of popularity, normalization of risk-taking behaviors, and can be detrimental to mental health.

How does social media help economic growth? ›

By using social media, USTDA is taking every opportunity to increase awareness of trade and development opportunities in a way that drives changes in behavior and inspires action. Doing so connects U.S. industry with business opportunities abroad and leads to sustainable development in our partner countries.

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