A new study out today shows the vast majority of small businesses are still not using social media. They are instead relying on “proven” methods like television ads, magazine ads, etc. (you know, dinosaur stuff).
Three-quarters of small businesses say they have not found sites such as Facebook, Twitter and LinkedIn helpful for generating business leads or expanding business in the past year, according to a survey conducted for Citibank Small Business of 500 U.S. businesses with fewer than 100 employees.
Also, 86 percent said they have not used social networking sites for information or business advice. Ten percent said they have sought business advice and information on expert blogs.
The low number of small businesses using such sites for business purposes was unexpected, particularly as social media use has grown overall, said Maria Veltre, executive vice president of Citi’s Small Business segment. Citibank is part of Citigroup Inc.
“We were very surprised we did not see more use of some of the social media outlets, even if just for advice,” she said.
“What this survey indicates to us is small businesses are very, very focused on running their business and on generating sales and managing their cash flow and doing the things that are really important, especially in these economic times,” Veltre said. “I don’t think quite yet the social media piece of it has proven to be as significant.”
Businesses who haven’t found social media helpful in generating leads or expanding business most likely aren’t using it correctly. It’s totally insane for any business not to be taking advantage of the social media revolution. There is simply no better place on earth for business advice and information than blogs and social networks.
Businesses that are serious about watching their cash flow and surviving the economic downturn should be leading the way in social media. Using tools like Twitter, Facebook, and LinkedIn which cost nothing can potentially free up advertising dollars to be used elsewhere in the company. Companies that know how to use social media correctly can reach millions of customers and potential customers directly without shelling out thousands of dollars to run TV, radio, or print ads.
Fear is the number #1 obstacle to running a successful businesses. It’s human nature to get comfortable and stick to what you know. Sticking with traditional marketing methods and a few online ads thrown in for good measure is a comfortable, safe, and proven method. However, we live in a world that is changing not by the day but by the hour. Small businesses need to be able to quickly adapt to the changing environment or risk being left behind.
Having said that, there’s another way this study could be interpreted. This could actually be the greatest news ever. I say that, because it means the field is till wide open. It’s not too late for companies to get in early and stake their claim. It means 86% of companies are still clueless and only 14% see what’s happening. Which group are you in?
(hat tip Social Media Today)
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I love your article. I acutally got to it thew a Twitter (@sheldonpenner) post. But I think one of the biggest challenges (at least for me) is that we as small business just run out of time at the end of the day. I would LOVE to do more with socail media but I need to take care of customers first.
Your analysis says it correctly. Social media has become a very strong tool for online promotion of the website and as such cannot be ignored.
Thanks for your post.
The big issue for small businesses is that social media can be quite time intensive. Having said that if you’ve got the time to spare and have a clear strategy it can reap dividends.
It’s absolutely true that social media does take a lot of time. However, adding an extra hour to your day for social media can really make a difference to your bottom line. Even if you only have time for a couple of tweets during lunch or at the end of the day, engagement on some level really will make a difference.