While most consumers rave about social media, it seems very few small business owners know how to use it to grow their companies.
In a recent survey conducted by BizLaunch.ca, small business owners identified which social media applications they have embraced as part of their marketing strategy. The most popular choices, in descending order, were Facebook, Twitter, Linked-In, blogs and YouTube.
However, when asked which social media application is contributing to sales, only 14 percent identified Facebook, followed by Twitter at 5 percent, Linked-In at 7 percent, blogs at 4 percent and YouTube at 1 percent.
Across all online marketing activities, a majority of business owners said their website remains the most effective tool for generating sales.
“Building business through social media is not something most small businesses are doing very well right now,” claims Small Business Expert Roger Pierce, co-founder of BizLaunch.ca, Canada’s largest small business training company. “Like a lot of new inventions, social media holds plenty of promise yet it is failing to deliver for small business owners.”
What worries Pierce the most is the time small business owners are investing in social media. According to the survey, over 49 percent of small business owners have invested 21 to 101 hours in social media promotions during the past 12 months, yet only 28 percent say that investment has yielded returns.
“A small business owner can’t afford spend so much time on something that isn’t generating results,” he warns. “They need to learn how to make this powerful new medium work for them.”
The problem, Pierce explains, is that small business owners don’t really understand how to use social media properly. “Entrepreneurs may understand traditional forms of marketing such as television commercials or newspaper ads, but social media requires a different approach that remains a mystery to them.”
What’s the biggest mistake to using social media? Using your Facebook page or twitter account to just plug upcoming sales or specials. “Pushy sales messages will turn off anyone who has joined your online group,” Pierce warns. “Social media is more about building a community of people with common interests, hopefully tied to what your business does,” he says.
“For example, a pet store owner could build an online community of dog owners. Or, a wine maker might build a community of wine lovers,” adds Pierce.
“The business owner needs to learn how to bring these enthusiasts together, facilitate interaction, stimulate dialogue, fuel their common passion and, very delicately and naturally, connect that community to his or her business.”
To help entrepreneurs learn such skills, BizLaunch is delivering several free seminars and webinars called ‘How to Use Social Media to Market Your Business.’ Small business owners may learn more at www.bizlaunch.ca
Photo credit Taminator
