Social media has become a digital buzzword, but social media platforms such as Facebook and Twitter mean different things for business owners than personal users. In 2015, a CMO survey set out to answer the question, “How does social media help businesses?” The answers were often surprising. Only 15% of respondents could quantitatively prove the positive impact of social media on business.

Nonetheless, social media represents a continually growing segment of the digital market, and it is essential for any brand looking to succeed online. Why is social media good for business? The key lies in understanding what social media is, how it helps businesses connect with current customers and generate new leads, and its impact on sales and marketing efforts overall. Popular social media sites for business include:

  • Facebook
  • Twitter
  • LinkedIn
  • Google+
The Impact of Social Media on Business

Impact of Social Media on Business: Why Is Social Media Good for Business?

The greatest impact of social media on business is the increased potential for customer relationships and engagement. Digital consumers behave in different ways from their brick-and-mortar consumer counterparts. Digital consumers live in a world where unlimited information and products are available. Some use desktop devices while others use smartphones and tablets, but today’s digital customer expects not only quality but convenience as well. They also expect accessibility.

Customer service was once the domain of call centres and physical customer service stations inside stores and company headquarters. Today, more businesses are offering the potential for one-on-one interaction with potential customers online through a variety of social media channels. Each social media platform presents a unique opportunity for customer engagement. There is no need to sign up for every social media platform available. The important thing is to go where your customers are. Consider your target market segments and focus on finding ways to be accessible to them on social media.

Impact of Social Media on Business

Impact of Social Media on Business: Facebook for Business

Facebook is one of the world’s largest social media platforms, with nearly 1.44 billion monthly active users. Originally, Facebook was intended to allow users to share links, pictures, videos and status updates with friends and family they knew in real life. Today, Facebook has become a popular platform for entertainers, brands and companies. Facebook allows businesses to create a branded page as a portal for online customer interaction.

The Impact of Social Media on Business

E-commerce software allows you to run a store directly through your Facebook page.

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The social media platform is a hub for users and customers in all market segments, so it is also a great platform for customer service. The truth is that many consumers take to Facebook when they are happy with a product or service, but just as many use Facebook to complain about dissatisfactory customer experience. Businesses that fail to claim their Facebook profiles risk alienating consumers who expect to be able to connect with brands they patronise through Facebook or even having their profile claimed by an imposter. They also lose out on the opportunity to respond to customer feedback.

When managed properly, Facebook can be a valuable tool for all types of businesses. Facebook’s built-in star rating system for business pages allows customers to rate and review your services. Their friends will see the review, depending on their chosen privacy settings, which can create a significant amount of word-of-mouth marketing without any effort or financial investment on your part. Even negative Facebook comments and reviews allow you to demonstrate your commitment to customer service by responding officially on a public platform.

Impact of Social Media on Business: Twitter for Business

Twitter Is A New Home for Digital Marketing - Impact of Social Media

Twitter is another leading social media platform with 305 million monthly active users in 2015 alone. While Twitter and Facebook share a user base that often overlaps, these platforms have distinct applications for business. Twitter allows users to communicate brief messages to followers who opt-in to view their status updates. With a 140-character limit, Twitter marketing is an exercise in brevity.

Savvy brands can use this to their advantage, sending out tweets with relevant quotes, links to high-quality, shareable content, and taglines that can easily be hashtagged and shared. The hashtagging system on Twitter makes it easy to connect with users in your niche, and clever use of hashtags in search can lead to the creation of viral marketing campaigns.

Businesses can also use hashtags to identify users asking questions they already have the answers to. To make Twitter work for your business, focus on connecting with followers and discussing topics relevant to your brand. Retweet items from other influencers in your field and post more interactive content than promotional content to keep a positive reputation on the site.

Impact of Social Media on Business: LinkedIn and Other Platforms

Business Networking Sites (LinkedIn, Quibb, Plaxo, AngelList review)

LinkedIn is a social media platform that is highly focused on making professional connections within and across industries. While this platform is less often used for business-to-customer engagement, many companies successfully recruit new talent and develop a network of other businesses and professionals.

Marketing on LinkedIn is generally more relationship-oriented than sales-oriented, so focus on establishing relationships with local influencers and businesses that offer complementary services. From bartering goods and services to recruiting your next talented employee, establishing a LinkedIn profile can help you succeed online.

Impact of Social Media

Impact of Social Media on Business: Sales and Social Media Marketing

Despite the lack of solid metrics connecting social media marketing efforts to sales, some tools can make it easier to track the effectiveness of your social media marketing efforts. Important metrics to follow include:

  • Click-through rates (from your social platform to your website)
  • Email sign-ups
  • First, click attribution.
  • Converting click attribution

General click-through rates monitor how often users are driven to your website through social media posts and shares. Email sign-up metrics allow you to gauge how many leads you can generate by posting links to your mailing list form on sites like Twitter and Facebook. First, click attribution helps you determine which links first brought unique visitors to your website, drawing them into the sales funnel you have created.

Converting click attribution is a metric that tells you which links on your site and social media profiles led people to convert from visitors to customers. Each of these metrics plays a crucial role in determining whether specific social media campaigns were worth the time, effort and money expended.

SEE ALSO: List of Social Media Sites

Other Benefits That Comprise the Impact of Social Media on Business

  1. Brand Awareness: Social media allows businesses to reach a wider audience, increasing their visibility and brand recognition.
  2. Targeted Advertising: Businesses can use sophisticated targeting options to reach specific demographic groups.
  3. Direct Interaction: Social media provides a platform for businesses to communicate directly with customers and potential clients.
  4. Customer Feedback: Businesses can gather insights and feedback from customers to improve products and services.
  5. Customer Support: Platforms serve as a medium to provide customer support and manage issues or queries effectively.
  6. Lead Generation: Businesses can utilise social media for lead generation through targeted campaigns.
  7. E-commerce Integrations: Social media platforms enable businesses to sell products directly through integrated e-commerce features.
  8. Talent Acquisition: Businesses can utilise social media for recruiting purposes, reaching potential candidates directly.
  9. Employer Branding: Sharing company culture and values through social media can attract like-minded individuals.

The Overall Impact of Social Media on Business

When asking, “How does social media help businesses?” it is important to remember that the answer can’t be measured in sales metrics alone. The value of using social media to promote your brand extends beyond click-through rates and conversions. Establishing a social media profile on the most relevant platforms for your business is a matter of improving your visibility and protecting your online reputation.

Businesses that don’t claim their social profiles risk being impersonated or simply missing out on opportunities to connect with consumers on their level. With more businesses adopting social media marketing strategies each day, social media has ceased to be optional in most industries. Social media profiles allow you to generate a steady stream of highly visible content, making them especially valuable in terms of SEO.

The most important thing to remember when deciding on a social media marketing strategy is to consider which platforms are right for your brand carefully.

The number of social media platforms available can be overwhelming, but start with one or two to keep things manageable. An automotive business catering to local customers likely doesn’t need a Tumblr account. Still, a Facebook profile that keeps an updated log of hours and allows customers to share their testimonials and reviews could be an invaluable component of your marketing plan.

Enhanced Communication and Engagement:

Impact of Social Media
  • Social platforms like Facebook and Twitter enable real-time communication and engagement with consumers. Businesses can directly answer questions, provide support, and foster relationships.
  • Regular social posting allows consistent brand interaction versus intermittent emails or ads. Frequent touchpoints improve familiarity.
  • Social conversations provide qualitative insights through user-generated content analysis. Sentiment analysis tools assess communication data.

Increased Brand Awareness:

  • Social media’s potential viral reach expands brand visibility. Content can be rapidly shared with networks of friends/followers.
  • Paid social ads allow precise targeting by demographics, interests, and behaviours to reach more of your audience. Facebook reported the average ad reaches over 6,000 people.
  • Hashtag campaigns on Twitter and Instagram create branded conversations that spread organically.

Leveraging Influencer Marketing Across Social Platforms: Best Practices for Authenticity and Success

Influencer marketing, when done right, can be a powerful tool to reach new audiences, build brand awareness, and drive engagement on social media. But finding the right influencers and collaborating authentically is crucial for achieving success. Here’s a detailed breakdown:

Identifying Relevant Influencers:

  • Define your target audience: Understand their demographics, interests, and preferred social platforms.
  • Seek platform-specific influencers: Consider the strengths and niches of each platform (e.g., lifestyle on Instagram, gaming on Twitch).
  • Look for engagement, not just follower count: Prioritize influencers with genuine engagement, comments, and active communities.
  • Analyze brand alignment: Choose influencers who share your brand values, ethics, and target audience.
  • Leverage influencer marketing platforms: Explore platforms like Buzzsumo or Upfluence to identify relevant influencers based on specific criteria.

Collaborating Authentically:

  • Build relationships, not transactions: Treat influencers as partners, not just paid endorsers. Foster genuine connections through communication and shared values.
  • Offer creative freedom: Trust the influencer’s expertise and allow them to adapt the campaign to their unique style and audience.
  • Focus on value, not just promotion: Encourage influencers to create content that educates, entertains, or inspires, subtly integrating your brand message.
  • Disclose collaborations clearly: Ensure transparency by using designated hashtags like #ad or #sponsored to inform viewers about paid partnerships.
  • Measure results beyond vanity metrics: Track website traffic, conversions, brand mentions, and engagement to assess the campaign’s true impact.

In today’s digital landscape, paid social advertising plays a crucial role in amplifying brand reach, driving engagement, and achieving specific marketing goals across platforms like Facebook, Instagram, LinkedIn, and more. Here’s a detailed breakdown:

Platforms and Targeting Capabilities:

  • Facebook & Instagram: Reach massive audiences with diverse targeting options based on demographics, interests, behaviors, and even life events. Leverage detailed lookalike audiences to reach users similar to your existing customer base.
  • LinkedIn: Ideal for B2B marketing, offering precise targeting by job title, industry, company size, and professional skills. Showcase job openings, promote thought leadership content, and connect with potential clients.
  • Twitter: Target users based on their interests, hashtags they follow, and keywords they engage with. Promote real-time conversations, trending topics, and customer service interactions.
  • TikTok: Reach a younger, Gen Z audience with engaging video ads targeted by demographics, interests, and in-app behaviors. Promote creative challenges, influencer collaborations, and trendjacking content.

Optimizing Campaigns:

  • Set clear objectives: Define your goals, whether it’s brand awareness, website traffic, lead generation, or conversions.
  • Craft compelling ad copy and visuals: Use high-quality images, videos, and concise text to capture attention and communicate your message effectively.
  • A/B test different variations: Experiment with different ad formats, targeting options, and creative elements to identify the best performing combinations.
  • Utilize landing page optimization: Ensure your landing pages are optimized for conversions, aligned with your ad message, and offer a seamless user experience.
  • Track performance and iterate: Monitor key metrics like impressions, clicks, conversions, and cost-per-acquisition (CPA) to refine your campaigns and maximize ROI.

Targeting Capabilities:

  • Demographic targeting: Reach users based on age, gender, location, language, and income.
  • Interest targeting: Target users based on their declared interests, hobbies, and activities.
  • Behavioral targeting: Reach users based on their past browsing behavior, app usage, and purchase history.
  • Custom audiences: Upload your existing customer lists or website visitors to target them with specific campaigns.
  • Lookalike audiences: Create audiences similar to your existing customer base for wider reach with potential high-value users.

Social Commerce: Transforming Social Engagement into Sales

Social commerce has emerged as a game-changer, transforming social media platforms from interactive spaces into bustling marketplaces. By directly integrating shopping functionalities, brands can now seamlessly turn engagement into sales within their established online communities. Here’s how:

Social Shops:

  • Create dedicated storefronts: Many platforms like Facebook, Instagram, and TikTok offer built-in shop functionalities allowing brands to showcase products, manage inventory, and process transactions directly within the app.
  • Curate product collections: Highlight popular items, new arrivals, or seasonal offerings to entice viewers and simplify the buying journey.
  • Utilize high-quality product visuals: Feature captivating images and videos showcasing product features and benefits in an engaging way.
  • Integrate product tags: Allow users to seamlessly click on product tags in organic posts and stories to access detailed information and initiate purchase directly.
  • Offer promotions and discounts: Drive sales by offering exclusive deals and limited-time offers within your social shop.

Product Tags:

  • Turn any post into a shoppable opportunity: Leverage product tags in both organic content and paid advertising to instantly connect viewers with purchase options.
  • Tag relevant products accurately: Ensure accurate product tagging based on featured items to avoid confusing or frustrating users.
  • Highlight key product features: Briefly showcase standout features or benefits within the product tag to trigger user interest.
  • Utilize dynamic product tags: Implement tools that automatically suggest relevant products based on user behavior or previous browsing, encouraging further discovery.

Optimized Profiles:

  • Create a visually appealing profile: Utilize high-quality cover photos, profile pictures, and highlight reels to establish a professional and inviting presence.
  • Include clear calls to action: Direct users to your social shop or website with prominent calls to action in your profile bio and pinned posts.
  • Showcase positive social proof: Integrate customer testimonials, reviews, and user-generated content to build trust and credibility.
  • Stay engaged with your audience: Regularly respond to comments, conduct polls, and host live events to foster community and brand loyalty.

Impact of social media on business: FAQ:

1. How can I measure the impact of social media on my business?

Track metrics like website traffic from social media, engagement (likes, comments, shares), brand mentions, follower growth, and conversions (leads, sales) to assess your performance.

2. How often should I post on social media?

Consistency is key! Post regularly based on your platform and audience, but quality over quantity matters. Utilize analytics to identify optimal posting times and frequency.

3. Is it worth paying for social media advertising?

Paid advertising can effectively reach targeted audiences and achieve specific goals like brand awareness or lead generation. Analyze your budget and objectives to determine if it’s a good fit.

4. How can I handle negative comments on social media?

Respond promptly and professionally, acknowledging concerns and offering solutions. Avoid getting defensive and maintain a positive brand image.

5. How can I use social media to hire new employees?

Showcase your company culture, share job openings, and engage with potential candidates through platform-specific features like LinkedIn’s Talent Solutions.


Social media has profoundly reshaped the business landscape, offering an invaluable platform for connecting with customers, building brand awareness, and driving sales. By understanding the evolving trends, leveraging powerful strategies, and prioritizing authentic engagement, businesses of all sizes can harness the power of social media to achieve their marketing goals and thrive in the digital age.

Remember, staying updated, experimenting, and measuring results are key to unlocking the full potential of social media for your business success.

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