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9 Reasons Why Social Media Is Important (and Profitable) for Business

Many businesses new to online marketing ask themselves the same question:

Why is social media important for my business?

You may have figured out by now you can’t learn how to market a business without understanding the importance of social media marketing.

There are 7.5 billion people on the planet with 3.8 billion active internet users and 3 billion active social media users, according to We Are Social and Hootsuite.

That’s 3 billion potential customers.

To prove that you’re leaving a lot of money on the table (and to inspire you to change that), we’ll show you 9 reasons why social media is important for your business.

But first, let’s define social media marketing.

What is Social Media Marketing?

Instead of giving you our own definition of social media marketing, we’ll let Neil Patel define it for you:

Social media marketing is the process of creating content that you have tailored to the context of each individual social media platform in order to drive user engagement and sharing.

That means to market on social media, you’re sharing content with pictures, text, and video that your audience is likely to enjoy and share – making them more likely to buy from you in the future.

But what are the benefits of social media marketing for businesses?

Are there enough reasons to invest in a campaign?

To answer those questions, let’s look at the advantages of social media marketing.

Why is Social Media Important for Businesses?

There are probably a hundred reasons why social media is important for business, but here are the top 9 you should know:

1. Built-In Customer Base

As we pointed out earlier, there are 3 billion active social media users.

Now thanks to Statusbrew, you can see how many active users are on each major social media platform:

Facebook 2.072 billion users
Twitter 330 million users
Instagram 800 million users
LinkedIn 500 million users
Pinterest 200 million users

If you could capture just 0.0001% of the audience on any of these platforms, you’d be reaping huge benefits from your social media marketing campaign.

2. Grow Your Audience Quickly

It’s hard to grow an audience relying purely on your content marketing and SEO efforts.

But by sharing content on your social media sites, you’re able to gain quick exposure to an audience hungry to interact with your brand and consume more of your content.

As you refine your social media marketing methods, your posts will hit an increasingly targeted, niche audience – delivering the type of visitors who can turn into loyal readers and customers.

3. Supercharge Your SEO Through Increased Traffic from Social Media

Two of the most important SEO ranking factors are page views and time on page (commonly called your bounce rate).

Sharing your content on social media will help you gain pageviews before you start ranking on Google. And the more people that view your content, generally the better your content will perform on Google.

That is, if they actually stay on your site reading your content.

You can have a lot of traffic coming to your site, but if they don’t stick around, Google will push your content down in the SERP’s (search engine results pages).

However, the lower your bounce rate, the higher Google will rank your content for your targeted keywords.

So sharing your content on social media sites can boost your SEO, just make sure it’s high-quality content that keeps people on the page.

4. Get More Bang for Your Advertising Buck

It’s cheaper to advertise on social media than any other medium.

And you get a way higher ROI.

According to Dr. Augustine Fou, the CPM (cost per thousand impressions) on social media is about $3, whereas the CPM for traditional media like TV ads is around $28.

If you have a tight budget (or want to reach an audience without wasting your money), then social media should be your first choice for advertising.

5. Maximize Word-of-Mouth Marketing

You already know that word-of-mouth marketing is a powerful way to gain new customers.

What you may not know is that social media is currently at the center of word-of-mouth marketing.

According to BrightLocal:

88% of consumers say they trust online reviews as much as personal recommendations (vs. 79% in 2013).

And even more interesting:

72% of consumers will take some sort of action after reading a positive review.

The better your online reputation, the more likely you’ll gain new customers.

6. Gain a Deeper Understanding of Your Customers

The first step in effective marketing is knowing WHO you’re marketing to – your ideal customer’s fears, desires, needs, character traits, etc.

Even more so, the products they buy, the hobbies they have, and the type of marketing they respond to best.

Social media allows you to “listen” and watch your potential customers interact with your brand and others, telling you what they like and dislike about your products while giving valuable feedback you can turn into marketing gold.

This is part of the long-term strategy of social media marketing. The more you’re engaged (and engaging) on social media, the more you’ll discover about your audience, and the better your marketing will become – meaning more sales and revenue long-term.

7. Build Deep Connections and Relationships with Your Customers

If you’re used to marketing in print, the “social” aspect of social media can seem strange.

Consumers want to see and feel real human faces behind brand names and corporations.

Impersonal marketing is all but dead.

If you want customers to trust you, especially millennials, then your marketing has to be humanized.

This is where social media shines.

A 2012 study by Martha Knight and Serena Carpenter from Arizona State University looked at how national companies use their Twitter accounts to respond to consumers.

The study found that companies who effectively use Twitter and engage in conversations with their followers were most likely to gain brand loyalty from those individuals.

Consumers want their voice heard. If you give them that, they’ll give you their business.

8. Reach More People Than Your Current Followers

One of the overlooked reasons why social media is important for business is you reach more potential customers than your current ones.

In a report published by We Are Social and Hootsuite, it was revealed that posts on a brand’s Facebook Page reach 10.7% more people than its current number of followers.

The more active you are on social media, the more potential customers are likely to find your page and interact with you.

9. Establish Excellent Customer Service

Customer service is no longer relegated to storefronts, phone calls, and your website’s FAQs.

In fact, according to Sprout Social, 34.5% of people prefer social media to receive customer care.

According to the same report from Sprout Social, If a customer reaches out via social media, they expect to receive a reply within 4 hours.

Most brands respond within 10 hours.

Here’s why that’s really bad:

If you don’t respond promptly, 36% of customers will publicly shame your company and 30% of customers will simply stop buying from you and switch to your competitors.

On the other hand, if you do respond quickly and effectively, 70% of the customers you interact with are likely to continue buying from you.

It literally pays to engage customers on Facebook, Twitter, or any other social media site, especially when they reach out with a problem.

Why You Should Use Social Media Marketing Services to Get off the Ground Quickly

There are many moving parts in a social media marketing campaign.

By now, you should realize how critical social media is to your bottom line.

You should also realize that it’s not as simple as slapping together a Facebook page and posting blog content on it.

You need to establish your presence on multiple social media sites.

You need consistently post content, yes, but also engage with your followers when they engage with your content.

You need to respond to customer requests on social media.

You need to run tests between paid advertising and free advertising on social media, measure your results, and double-down on what works best.

In short, you need a team to handle this part of your marketing.

A team that can understand your brand, develop content for you, promote it on social media, engage your followers, and run advertising tests that boost your profits.

Interested?

We can help. Find out more about our social media marketing services today.

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