This document summarizes a study on how small and medium businesses use social media. It finds that most SMBs use social media for marketing purposes, but also for learning and insights. There is a correlation between increased social media spending and high growth among SMBs. SMBs are open to receiving financial information on social media, especially LinkedIn, and many take action after discovering financial products or companies on social platforms. The document recommends that financial service providers provide useful content to SMBs and engage with them throughout the purchasing process, especially on LinkedIn.
3. They’re optimistic about 2014 and focused on
marketing
8 in 10
41%
10.7%
think 2014 will be
better than 20131
say increasing marketing
and brand presence is their
top business priority1
YoY increase in
marketing budgets2
1 - RocketLawyer, 2013 Semi-Annual Small Business Survey
2 - Borrell Associates, Dec. 2013
3
5. Key Findings
Social media: ideal for marketing, but also for learning
• 94% of SMB social media users use it for marketing
• Half use it for learning and deriving business insights
There is a strong correlation between increased social
media spend and hyper growth
• 73% of hyper growth companies reported increased social media spend
• 82% of hyper growth SMBs say it is effective for generating new leads
There is a prime opportunity for financial companies to
influence SMBs on social media – especially on LinkedIn
• 68% use social media for finance-related reasons
• 93% are driven to take action after using social for both discovery and consideration
• SMBs are most open to receiving financial information on LinkedIn
5
7. 8 out of 10 SMBs use social media for their business
81%
of SMBs are Current
Users of Social Media
9%
are Future
Users
7
8. Among social media users,
nearly all use it for marketing
TOP MARKETING
REASONS*
1
2
Generate word-of-mouth
3
Deliver content and new
information about company
4
Advertise to help increase
awareness
5
94%
Maintain a company
presence and identity
Advertise to generate
new leads
Use Social Media for
Marketing Needs
*Base: Current Social Media Users
Small Businesses are significantly more likely vs. Medium Businesses
Medium Businesses are significantly more likely vs. Small Businesses
8
10. Half also use social media to
learn and share resources
TOP REASONS FOR
LEARNING*
1
2
Learn from experts in
my industry
3
Obtain insights or best
practices
4
49%
Access a network of
peers to ask questions
Find information and
opinions to answer my
questions
Use Social Media for
Learning
*Base: Current Social Media Users
Small Businesses are significantly more likely vs. Medium Businesses
Medium Businesses are significantly more likely vs. Small Businesses
10
12. The majority of SMBs are growing and one in six are
in hyper growth mode
HYPER GROWTH
Significant Increase in Overall
Revenue YoY
16%
NON-GROWTH
GROWTH
Decrease/No Change in
overall revenue YoY
48%
Increase in Overall Revenue
Compared to Last Year
36%
Small Businesses are significantly more likely vs. Medium Businesses
Medium Businesses are significantly more likely vs. Small Businesses
12
15. Social media is one of the most
influential touch points when SMBs
choose a financial service provider
15
16. Over two-thirds of SMBs on social
media use it for financial services
TOP REASONS*
1
2
3
Seek advice on a financial
decision
Evaluate or re-think a
previous financial decision
5
Have Used Social Media
for Finance-Related
Gather preliminary financial
information
4
68%
Keep up-to-date on financial
trends
Recommend a financial
product to others
Reasons
Small Businesses are significantly more likely vs. Medium Businesses
Medium Businesses are significantly more likely vs. Small Businesses
16
17. Social media triggers SMBs to learn more about
financial products and companies
Top 6 Actions As A Result of Hearing on Social Media
01
03
02
Conducted additional research
on a financial product
04
Learned of a new financial
company
Learned of a new financial
product
05
Shared information about
financial trends, products
06
Asked a financial professional for
additional info
Discussed a financial product with
a friend or colleague
Small Businesses are significantly more likely vs. Medium Businesses
Medium Businesses are significantly more likely vs. Small Businesses
17
20. There is a significant opportunity for financial service
providers to cater to SMBs’ unmet needs
Top 5 Types of Finance Content expected on social but not received*
Best practices, how-to guides, checklists
29%
New innovation and technology developments
New product information
21%
Company background
Industry news/strategy information
*Base:: Current Social Media Users
**Base: Those who expected info
22%
20%
16%
20
21. In the path to purchase for financial
services, SMBs consider LinkedIn to be
one of the most trusted platforms
21
22. LinkedIn is the destination SMBs are most receptive
to learning about financial products
Openness to Receiving Financial Information
On Social Media Sites*
57%
49%
47%
47%
45%
38%
69%
of hyper growth companies are
receptive to finance content on LinkedIn
*Base: Current Users of Each Social Media Site
22
23. Only LinkedIn provides the 4 C’s
CREDIBILITY
Nearly 3 in 4 agree LinkedIn allows them to
build credibility.
CONNECTION
Over 2 in 3 agree LinkedIn lets them connect
with vendors or potential partners.
CONTEXT
Over 2 in 3 agree LinkedIn provides a relevant
context to promote and advertise their
company.
COMMUNITY
Nearly 2 in 3 agree LinkedIn provides access
to a broader community of other companies to
seek opinions.
23
24. ...providing a valuable resource across different
activities in the SMB value chain
Sourcing
Marketing
& Sales
Customer
Service
Open
Innovation
*Base: LinkedIn Users.
24
25. Build relationships through multiple touch points on
LinkedIn
Encourage referrals and
recommendations
Build community
LIKE
▪
GROUPS
SHARE
FOLLOW
▪
COMMENT
Build your followers
INMAIL
Provide real-time
assistance
SPONSOR
UPDATE
Publish thought
leadership
25
27. For the full results....
Download the whitepaper:
http://lnkd.in/SMB-research
27
Editor's Notes
Goldman Sachs released research last year that clarifies this further. They said, it’s not necessarily the size of the business that leads to job creation, it’s the age. “The process of young firms (which do tend to start out small) growing into larger firms is the true contributor to job growth.” – Kris Dawsey, Goldman Sachs. So SMBs in growth mode are a very important audience.
LinkedIn and TNS surveyed 998 North American small and medium businesses with revenue between 1MM and 50MM USD and use or plan to use social media.Our respondents were financial decision makers or influencers at the company or division/business unit level.Small biz. (top 3 industries): Professional Services (e.g., Consulting, Graphic Design, Supply Chain, Real Estate), Retail & Consumer Products, Manufacturing-IndustrialMid sized biz. (top 3 industries): Manufacturing-Industrial, Professional Services, Financial Services, Insurance or Accounting
Q11. How long has your company been using social media? (Select one)
Q14. Which of the following reasons describe why you currently use/plan to use social media for your company? Q15. Of the following reasons you indicated why you use social media for your company, please indicate how effective social media was in achieving these objectives? (T2B)Top 5 stayed the same for small and mid sized biz. Small biz are more likely to use social media to maintain a company presence and identity, and to find information and opinions to answer their questions, compared to mid sized biz.Mid sized biz were more likely to use social media to find and source new employees/hires, compared to small biz.Both small and mid sized biz. have comparable ratings when it comes to effectiveness of social media
Q10. Please rank order the top 5 challenges for your company over the next 12 months.Small companies are sig more likely to state that attracting new customers is their top challenge. On the other hand, mid sized business are more sig likely to find social media useful in gaining new customers
Q14. Which of the following reasons describe why you currently use/plan to use social media for your company? Q15. Of the following reasons you indicated why you use social media for your company, please indicate how effective social media was in achieving these objectives? (T2B)
Q8 For overall revenue, please indicate whether your business has increased, decreased or stayed the same this year compared to last year?Sig higher proportion of mid size biz report increase/sig increase in overall revenue compared to small biz.Among non-growth: 71% were small businesses; 29% were medium sized businessesAmong growth: 63% were small businesses; 37% were medium sized businessesAmong hyper growth: 50% were small businesses; 50% were medium sized businesses; 50% were medium sized businesses
Q9. For the following marketing activities, can you please indicate if your spend has increased, decreased, or stayed the same this year compared to last year? (T2B) BY Q8. For overall revenue, please indicate whether your business has increased, decreased or stayed the same this year compared to last year? (TB, B3B)
Q15. Of the following reasons you indicated why you use social media for your company, please indicate how effective social media was in achieving these objectives? (T2B)BY Q8. For overall revenue, please indicate whether your business has increased, decreased or stayed the same this year compared to last year? (TB, B3B)Total effectiveness reads from Slide 10:Maintaining company presence: 80%Generate WOM: 80%Deliver content: 86%Advertise to increase awareness: 81%Advertise to generate new leads: 69%
Q26. For which of the following purposes have you turned to social media? Small companies are least likely to have used social media to any of the above reasons. Mid size companies are more likely to gather preliminary information about financial products/policies/solutions, or financial institutions/companies, and recommend a financial product/policy/service to others compared to small companies.
Q27. Which of the following actions, if any, have ever occurredas a result of your hearing or reading something on social media? Mid size companies are sig. more likely to have learned about a financial company/institution their company was not previously aware of, compared to small biz. That’s a growth storySmall biz are sig. less likely to have taken an action as a result of hearing or reading something on social media compared to mid size biz
Q26. For which of the following purposes have you turned to social media? Q27. Which of the following actions, if any, have ever occurredas a result of your hearing or reading something on social media? DiscoveryUse social to gather preliminary information or/andStay up-to-date on financial trends/ products/ companiesConsiderationUse social to seek advice or gather info to make a financial decision or/andevaluate or re-think a financial decision Mass Affluent21% (Disc)32% (Cons)63% (Both)
Q26. For which of the following purposes have you turned to social media? Q27. Which of the following actions, if any, have ever occurredas a result of your hearing or reading something on social media? DiscoveryUse social to gather preliminary information or/andStay up-to-date on financial trends/ products/ companiesConsiderationUse social to seek advice or gather info to make a financial decision or/andevaluate or re-think a financial decision Mass Affluent21% (Disc)32% (Cons)63% (Both)
Q24. If a financial services company were to use social media, what types of information would you expect to receive from it for your company? Q25. Which, if any, of the following do you recall receiving from your financial service provider(s)via social media? High proportions of small biz expected receiving new product information, readily sharable marketing materials, and customer stories and case studies, compared to mid sized biz.
Q23. How open are you to receiving financial content and information from companies you do business with on the following social media sites/services? (T2B)Hyper growth reads:LinkedIn: 69%Facebook: 58%Twitter: 55%Pinterest: 57%Google+: 49%Yelp: 27%
Nearly 3 in 4 agree LinkedIn allows them to build CREDIBILITY.Over 2 in 3 agree LinkedIn lets them CONNECT with vendors or other companies and allows them to identify credentials of potential partners.Over 2 in 3 agree LinkedIn provides for a relevant CONTEXT to promote and advertise their company.Nearly2 in 3 agree LinkedIn provides access to a broader COMMUNITY of other companies to ask questions or seek opinions.Q19. To what extent do you agree with the following statements about LinkedIn, as they relate to your use of social media for your company? (T2B)Small biz are more likely to perceive LinkedIn as a social media site that allows for building credibility, and connecting with vendors or other companies, compared to mid size biz.
Sourcing - Allows me to identify the CREDIBILITYand expertise of potential partners and CONNECT with vendors or other companies Open Innovation - Provides access to a broader COMMUNITYof other companies and thought leaders to seek opinions/recommendations Marketing and Sales - Allows me to buildCREDIBILITYand provides a relevantCONTEXT for me to promote and advertise my companyCustomer Service - Allows me to CONNECT with current customers Q19. To what extent do you agree with the following statements about LinkedIn, as they relate to your use of social media for your company? (T2B)Small biz are more likely to perceive LinkedIn as a social media site that allows for building credibility, and connecting with vendors or other companies, compared to mid size biz.