How social media marketing can help your business

Online social media are now firmly established as everyday communication tools for millions of people, to such an extent that around half of the UK population used social media in May 2009. But what can these new tools offer small businesses? Business writer Rachel Miller finds out

Many small businesses are already enjoying the benefits of being active in online social networks. Some small firms have jumped in but are struggling to make it work, while many others don’t know where to start.

Building a successful presence online is like any marketing activity. You will have to plan your approach, establish objectives, focus on your target audience, monitor activity and, above all, make sure your message is appropriate for the medium.

Choosing online networks

The largest UK social media site is Facebook, followed by Bebo, Windows Live Profile and MySpace. Twitter, the micro-blogging site, is in fifth place.

Don’t be dazzled by numbers, however. It is the profile of the users that counts. Twitter tends to appeal to people in their thirties and forties and is popular with businesses, while Facebook has its biggest following among twenty-somethings. There are other sites, such as LinkedIn and Ecademy, which are specifically aimed at businesses and more appropriate for professional networking.

Specialist networking sites can deliver results. A trade or business organisation may have an online forum that is used by the very people you want to reach. There are also other ways to connect with people online, such as blogs and also ‘bookmarking’ sites, such as StumbleUpon and Reddit, where you can share useful web links.

Your choice of social media marketing platform is likely to be influenced by your market and your marketing goals. You will need to know where your customers are and what you want to achieve once you have connected with them.

The uses of social media

You may be surprised by the range of marketing activities you can carry out online. For example, you might want to use social media to:

• reach customers and prospects online
• raise your profile and enhance your brand reputation
• strengthen your customer relationships
• demonstrate your expertise, your commitment and your passion
• improve your understanding of industry issues and trends
• meet people who can help you develop your business
• enhance your customer service
• boost traffic to your website
• test new ideas and find out what people think about your business
• see what your competitors are up to
• improve your sales.

The pros and cons of social media marketing

Cost is a key advantage. Many social media platforms are free to use, but you must factor in the time you have to spend managing your online presence.

With social networking, you can access large numbers of useful contacts including customers, prospects, influencers, suppliers and even potential partners or employees. It is a highly measurable form of marketing so you can track results and fine-tune your approach with relative ease. It’s also an efficient way to spread the word - the right contact or follower could introduce you to a whole new audience.

However, as with any form of marketing, there are pitfalls. To start with, your particular target audience may not be online in sufficient numbers to make the effort worthwhile.

Maintaining and controlling your online networking presence is not always easy. Keeping content fresh and interesting takes time and you can’t always control what people are saying about you.

Getting the most out of social media marketing

Online networking works best if you contribute regularly and don’t overtly sell or push your own agenda. It takes time to build relationships and reputation.

It is important to monitor your activity on social media sites and to keep control of your messaging. Have clear guidelines and objectives for yourself and your employees. Social networking chat tends to be quite informal but it should not damage your brand or reputation. If a customer posts a negative comment, respond quickly and try and turn it into a positive.

Social media marketing can be highly effective and it is certainly not expensive. For small firms, it can be an excellent way to increase visibility and enhance reputation. However, to do it properly can involve a major time commitment. You must be prepared to give it a lot of your attention, measure its success and make sure that it fits within your overall marketing strategy.