Although online initiatives such as social media can play a huge part in marketing strategies for small businesses, it can be difficult for retailers to pinpoint a technique which works for them in terms of improving sales.
This has become abundantly clear in a new survey conducted by ChannelAdvisor, which has shown that only one in three small retailers are managing to utilise sites such as Facebook, Pinterest and Twitter effectively to grow sales.
While online retailers may be managing to significantly grow their customer bases as a result of a boom in online shopping, the report also suggests that they are struggling in the area of social media.
Yet Anthony Gale, managing director of Click Here Media, which devises social media strategies for larger retailers, believes this is because many attempt to use social media in the wrong way – as a means of selling a product rather than for building brand awareness.
He says; “The PR angle of social media, which is to create awareness, is key, but some clients try to use it for direct sales, which often isn’t the best use of budget.
“Social media sites such as Twitter, Tumblr and Facebook are not built for buying – Facebook does work for some direct sales, but it’s not geared up for such and often puts people off.
“When people go on Facebook they don’t want to be sold to and with the explosion of mobile it’s now even less likely consumers will want to buy directly from them.”
Social media, when used correctly, can certainly make a significant impact on sales – as fashion house Burberry proved in the 2012 financial year. It spent around 60 per cent of its advertising budget on social media and claims that this helped it to achieve strong financial results, in combination with investment in digital marketing and retail strategies elsewhere.
Clearly, then, it is important for small retailers to use social media in conjunction with a multi-channel offering in order to reap results. The best method by far is to aim for an increase in brand awareness through retweets or likes on Twitter and Facebook respectively, perhaps using each site as a means of enhancing brand awareness.
Utilising social media to launch competitions has proven extremely effective for a number of retailers; entering users who share or retweet a post tends to be the most common way of doing this. Not only can this lift interest in a brand, it can give a retailer access to a wider market than can be found on the local high street – hence paving the way for future expansion should this prove to be an option in future.
Above all, one of the best things about social media advertising is it tends to be relatively cheap compared to traditional tools such as television adverts or billboard campaigns. If used correctly, it can not only lift revenues for a small retailer but also cut down on operating costs, raising profit margins and establishing a secure financial base from which to operate in future.
Does your business utilise social media to raise brand awareness – if so, what techniques have worked for you in the past?
