Businesses Are Now Competing More with Small Businesses
While social media has undoubtedly impacted big businesses in many positive ways, as we shall see, it has also had a negative impact on them in that social media has leveled the playing field whereby businesses are now competing more with small businesses.
Before social media became what it is now, corporations relied on advertising and customer service to support their brands.
Now, small entrepreneurs are able to compete against business because they take their advertising directly to the user by engaging the client in their story and making the shopping experience more personal.
So, all kinds of small and mid-sized businesses, such as florists, dry cleaners, and cheap movers that assist people in moving home and storing their belongings, can leverage what is effectively a free form of advertising to reach their target audience and a wider audience when they utilize the power of social media.
Businesses Can Enhance Their Brand Image and Build Lasting Relationships with Customers
The most significant impact of social media on businesses of all sizes, including large companies, is the effect it has had on marketing strategies.
Social media can bridge the gap between a business and a consumer by creating channels of communication, which means businesses can enhance their brand images and build more meaningful and lasting relationships with existing and potential customers.
Because feedback from target audiences is virtually instantaneous on social media platforms, companies can assess their brand image and reshape it much more quickly than was possible before the days of social media, to ensure they keep their brands aligned with their customers’ priorities.
Businesses Can Attract Bigger Audiences and Reach Global Consumers
It used to take a long time and a lot of effort for big businesses to reach wider audiences, especially in international territories.
But with social media, everyone around the globe can be easily and quickly targeted by businesses.
Therefore, big businesses can attract bigger audiences and more global markets at low costs.
Social media platforms transcend the boundaries that once existed, so businesses are able to boost brand awareness, grow larger, and scale more quickly when they adopt social media marketing.
Social Media Makes Communication with Target Audiences Easier
In the days before the internet and social media, gaining two-way communication with target audiences was challenging for businesses. The process involved things like surveys and focus groups.
Now, businesses can have almost instantaneous communication with their target audiences.
Thanks to social media, companies can reach out to consumers more frequently, quickly, and easily.
That doesn’t just mean businesses can target potential customers with their marketing. It also means they can access feedback and grievances from their target audience in real time. Ultimately, that leads to making more sales.
For instance, a study by the Harvard Business Review found that people who engaged with brands on Twitter and received responses to their tweets were more likely to buy from those businesses and spend more.
The probability of making purchases increased even more when the companies responded to tweets within five minutes.
Therefore, it’s clear just how much consumers value human connections and how having interactions with businesses can increase purchase rates. Without social media, that simply wouldn’t be possible.
Utilizing Social Media Significantly Reduces Businesses’ Marketing Costs
While businesses can benefit from placing paid ads on social media sites and spending money on other digital marketing methods, posting on social media sites and connecting with existing and potential customers can be completed for almost free.
The only main cost is employing staff members to use social media platforms regularly.
Therefore, social media use can significantly reduce marketing and promotional costs, as well as operational costs.
Creating such heightened brand awareness via other means at such a low cost simply wouldn’t be possible outside of social media.
Social Media Gives Customers Increased Power
Social media puts more power in the hands of customers, as customers can post content about businesses and their products and services, and when that content is shared, it can majorly impact brands.
Therefore, the increased customer power that social media provides can impact big businesses in either positive or negative ways.
Customers have the ability to publicly share their views about companies without repercussion, which means customers can sometimes be more empowered than the businesses.
But as long as businesses analyze online feedback, they can adjust their methods to create a better brand and better products or services.