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Priming the economic engine

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Priming the economic engine

  1. 1. Priming the Economic Engine How Social Media is Driving Growth for Small and Medium Businesses (SMBs) Commissioned study conducted by: 1
  2. 2. Why should you care about SMBs? SMBs contribute $5.5 trillion in annual revenue (Source: Dun and Bradstreet) 1 Young firms in growth mode are the largest contributors to job growth. 3 2 (Source: Goldman Sachs) Small businesses create seven of every ten new jobs. (Source: SBA Office of Advocacy) ©2013 LinkedIn Corporation. All Rights Reserved. 2
  3. 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
  4. 4. We wanted to understand how and why SMBs use social media DEFINING SMBs Small $1M to $9.9M USD Medium 998 Small and Medium Businesses surveyed in the $10M to $49.9M USD US and Canada ©2013 LinkedIn Corporation. All Rights Reserved. 4
  5. 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
  6. 6. Social media: ideal for marketing, but also for learning 6
  7. 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. 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
  9. 9. The reason? Social media addresses their #1 challenge 65% State that attracting new customers is their top business challenge 61% Find social media useful in gaining new customers ©2013 LinkedIn Corporation. All Rights Reserved. 9
  10. 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
  11. 11. Strong correlation between increased social media spend and hyper growth 11
  12. 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
  13. 13. Hyper growth and increased spend on social media are strongly correlated Report Increased Social Media Spend Hyper Growth 73% Non-Growth 42% ©2013 LinkedIn Corporation. All Rights Reserved. 13
  14. 14. SMBs in hyper growth find social media to be very effective in achieving key marketing goals % Reporting That Social Media Is Effective For... BRANDING WORD-OF -MOUTH 90% 88% 89% 82% Maintaining a company presence & identity Generating word-ofmouth about a company Delivering content & information about company Advertising to generate new leads ©2013 LinkedIn Corporation. All Rights Reserved. CONTENT MARKETING LEAD GENERATION 14
  15. 15. Social media is one of the most influential touch points when SMBs choose a financial service provider 15
  16. 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. 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
  18. 18. Among SMBs who use social media for both discovery and consideration, almost all are driven to action Path to Purchase 93% DISCOVERY CONSIDERATION DRIVEN TO ACTION Gather info / stay upto-date Seek advice/info to make a purchase (Learn / Discuss / Purchase) ©2013 LinkedIn Corporation. All Rights Reserved. 18
  19. 19. ...and about two in five are driven to purchase Path to Purchase 37% DISCOVERY CONSIDERATION Gather info / stay upto-date Seek advice/info to make a purchase ©2013 LinkedIn Corporation. All Rights Reserved. DRIVEN TO PURCHASE 19
  20. 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. 21. In the path to purchase for financial services, SMBs consider LinkedIn to be one of the most trusted platforms 21
  22. 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. 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. 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. 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
  26. 26. Best practices for marketers Enable learning throughout each phase of the purchase path Fulfill unmet content needs Target hyper growth companies v Provide resources for the entire SMB value chain Build your credibility by facilitating open dialogue with SMBs ...LinkedIn has given us great access to new and potential customers. A level of trust is able to be established and thus, contacting these folks isn't as much of a cold call. - Small Business, Healthcare industry ©2013 LinkedIn Corporation. All Rights Reserved. 26
  27. 27. For the full results.... Download the whitepaper: http://lnkd.in/SMB-research 27

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