6 in 10 SMBs Using Social Say It Helps Attract New Customers

February 14, 2014

This article is included in these additional categories:

Content Marketing | Digital | Local & Directories / Small Biz | Marketing Budgets | Social Media | Word of Mouth

LinkedIn-SMB-Use-of-Social-Media-Feb2014LinkedIn has released a study of the use of social media by SMBs in the US and Canada, and while some of it reads as a sales pitch to attract financial companies to the platform, the study does contain some interesting data points. According to the survey of almost 1,000 companies, 8 in 10 currently use social for their business, with the vast majority – 94% – of those doing so for their marketing needs. Many report it helping achieve an important goal – attracting new customers. Indeed, some 61% find social useful in gaining new customers.

The top reasons SMBs use social for marketing, per the report, are:

  • Maintaining a company presence and identity;
  • Generating word-of-mouth;
  • Delivering content and new information about the company;
  • Advertising to help increase awareness; and
  • Advertising to generate new leads.

But SMBs are using social for more than just marketing, according to LinkedIn’s findings. About half of them use it for learning – such as accessing networks of peers to ask questions, learning from experts in their industry and obtaining insights or best practices.

The study takes a closer look at the 16% of SMBs responding to the study that are in “hyper growth” mode, meaning that they have experienced a significant increase in year-over-year revenue. These fast-risers are more likely than those who haven’t experienced any growth to have increased their spending on social media (73% vs. 42%). While there are too many variables at play (these companies no doubt have more money to spend on marketing across the board) to consider that result anything more than a nice correlation for LinkedIn to tout, other survey results do show that these fast-growing SMBs are enthusiastic about social’s effectiveness. In fact, at least 8 in 10 say that social media is effective for maintaining a company presence and identity (90%), generating word-of-mouth (88%), delivering content and information about their company (89%) and advertising to generate new leads (82%).

About the Data: The LinkedIn data is based on a survey of 998 small ($1M-$9.9M USD) and medium ($10M-$49.9M USD) businesses in the US and Canada.


Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This