Business Article

Social Media and Small Businesses 1
Brynn A. Ekins Small-Business Owners
In the world of business, small businesses
can have a difficult time becoming
successful. Bigger businesses dominate the
market, making it challenging for small
businesses to break into the market and gain
the attention they deserve. Social media can
drastically change the course of a business.
Businesses are spending money using social
media at a faster rate than ay other form of
online marketing.1 Figure 1 shows the results
of research on social networking. The graph
shows the amount of money spent on social
networking in the millions. Social
networking spending will have increased
335% from 2008 to 2014.2 Social media is
quickly becoming an important platform for
businesses.
Figure 1: Projected Money Spent on Social Media.
Source: Courtesy of the Author3
This figure shows the amount of money spent on
social media over time.
This article will discuss (1) why small
businesses should use social media, (2) the
elements established, and (3) how to use
social media in small businesses.
Small-business owners have many reasons to
use social media. One reason to use social
media is to make connections. Connecting
with the public as well as the community in
which the business is located is important to
gain support. Social media can also help
businesses to keep up with the latest trends.4
Social media also helps businesses to
network. Networking online can help
businesses to be introduced to potential
clients, gain insights from discussions from
other professionals, and discover inside
connections that can help the business in the
future.5
Small-business owners can gain many
benefits from using social media. One benefit
is that using social media is faster and
cheaper than traditional marketing. Social
media increases business promotion and
online branding opportunities. Social media
can also help build relationships with
customers and potential customers by
helping businesses connect with customers.6
Businesses that use social media are viewed
as more personable.7 Social media is
effective because it increases the number of
consumers that are reached. Social media
expands the exposure to the business and
increases the traffic to their website.8
Small businesses rely on trust much more
than bigger companies. Trust is how small
businesses make customers feel comfortable
purchasing from them instead of from bigger
0
2000
4000
2008 2014
Projected Money
Spent on Social…
Projected
Money
Spent on
Social
Media
Why Small Businesses Should Use
Social Media
Elements Established When Using
Social Media Successfully

customers, and why customers come back.9
Small-business owners can use social media
to establish trust. Figure 2 shows the six
ways that small-business owners can use
social media to establish trust with their
customers.
Figure 2
Source: Courtesy of the Author10
Trust is an essential part of business. This figure
displays the six ways that social media establishes
trust.
The first way, as shown in the figure, is by
turning customers into allies11. Social media
makes it possible to connect with customers
and build relationships. By using social
media, small-business owners can share
information with their customers and ask for
their advice.12 Making the customers feel part
of the business will turn them into allies.
The second way social media helps establish
trust is by building up online reviews.
Research has shown that there is a correlation
between online reviews and consumer trust.13
Small-business owners need to use social
media to encourage their customers to write
reviews.
The third way is by establishing social proof.
Customers need to see that the business has
an online presence. The more visible the
business is to the customer and the more
places they can find the business online, the
more they trust the brand.14
Another way social media builds trust is by
allowing businesses to follow up with
customers after purchase. Social media
offers added customer touch points, which
will show that the business cares about their
customers.15
Social media allows businesses to respond to
feedback. Businesses must respond well to
feedback, even when the feedback is
negative. Customers need to see that the
business is not afraid to take and respond to
criticism.16
The final way social media establishes trust
is by bringing value. Social media helps put
the focus on education instead of selling,
which will help build customer loyalty.17 By
using social media to respond to customers,
they will see that the business values its
customers.
Trust is just one element that becomes a
benefit when using social media successfully.
Figure 3 shows the five elements that are
established when using social media
successfully.
The Five Elements Established When Using
Social Media Successfully
Build Up
Online
Reviews
Turn
Customers
into Allies
Establish
Social
Proof
Six Ways
Social Media
Establishes
Trust
Follow
Up Aftr
Purchase
Bring
Value
Respond
to
Feedback
Trust
Visibility
ViabilitySustainability
Differentiation

Figure 3
Source: Courtesy of the author
Using social media successfully is important for small
businesses to succeed. When socialmedia is used
successfully five different elements are established.
This figure displays the elements that are established.
Visibility is knowing and being known.
Businesses can use social media to promote
their businesses to create visibility. Social
media does this via viral marketing and
word-of-mouth promotion.18 Social media
helps businesses to connect to more
consumers on different, more personal levels.
Businesses can give incentives for
participation and exposure using social
media. Social media helps businesses
interact with the community and the
customers, which helps develop the brand.19
Viability is capability; doing the right things
right. Social media assists companies in
learning about their own businesses as well
as others. Social media can also help
businesses to learn about their community
and relationships. Social media additionally
helps businesses learn about social business
management.20
Sustainability is minimizing vulnerability.21
Not all businesses that are using social media
do so effectively and efficiently. Businesses
can work with other businesses in social
networks to become better able to create
content for consumers and to maintain
relationships with their customers.
Businesses can also work within social
networks to promote their brand and get the
customers engaged in the company.22 Social
media will help establish customer loyalty.
Differentiation from competitors can make or
break a business. Small businesses must
identify and develop the medium needed to
achieve the competitive advantage. Social
media helps small businesses break into new
markets. Establishing a relationship with
consumers and other businesses using social
media in the new market will help
differentiate the businesses from other
existing companies.23
The business’ website is the best source of
information and social media can and should
direct traffic towards it.24 Businesses should
choose the social media medium that best
suits their needs. The best way to choose
which social media medium to use is to focus
on the audience and the message. Twitter can
be effective in promoting offers as well as for
direct customer service. LinkedIn is the best
online tool for building a business and their
reputation.25
When setting up social media, a small-
business owner should first find their
customers online. It is important to know
where customers are commenting and
sharing content in order for the business to be
able to reach them. Next the business needs
to set itself up to listen. Businesses should
treat social media as a platform for listening.
By listening, companies can find out what is
important to their customers and can improve
their business. The last thing business
owners need to remember is to emphasize
customer service.26
Some tips to remember when using social
media are that businesses need to add value
to any conversations that they are a part of.27
Businesses also need to develop content that
will draw potential customers in. Content is
what makes a business interesting. Another
tip for using social media is to not over post,
but to post questions that will keep fans
engaged and interested in the business. It is
also important for companies to respond
quickly to all comments, including the bad
ones.28
How to Use Social Media in Small
Businesses

Facebook is one social media source that can
be used by small-business owners. When
using Facebook, businesses need to create a
“fan page”. This will help keep people
informed and updated on new products and
services. Fan pages also help businesses
communicate with their followers, as well as
post pictures and videos.29 To gain more
followers on Facebook fan pages, businesses
need to understand why consumers “like” fan
pages. Consumers do this to get discounts or
promotions, to show support, to get free
items, to stay informed and updated, to get
access to exclusive content, to learn about a
company, and to become educated on
company topics.30
LinkedIn is another social media source that
can be valuable to small-business owners.
LinkedIn has professional groups that
businesses should join and participate in.
When the business answers questions, they
can become a ranked expert in their field.31
2Businesses can share with others in their
field ideas that work for them and get ideas
from others to help improve their business.32
With LinkedIn businesses can connect with
people based on their area of expertise.
Twitter can be used to promote the business.
Twitter allows for links to websites to be
posted, which can draw traffic to the
business’ website. Twitter can be used for
public relations, customer service, and
advertising.33
Blogging is another form of social media.
Search engines will pick up on blog content
and will help businesses reach consumers.
Create frequent posts with numerous
keywords to help the business show up in
search results and to help the personality of
the business to come across. The content of
the posts can have things like tips and
information on the products and services,
trends, and customer profiles. 34
Manta is a lesser-known social media source.
Manta’s purpose seems to be to get more
customers and make more sales. In most
social media mediums, a hard sell is
discouraged. On the majority of social media,
if businesses attempt to sell products, they
will be ignored and even lose fans. However,
on Mantra the opposite is true. Mantra is a
way to advertise and promote the business
and what they have to offer. 35
Social media can help establish a small
business as one that is different from other
companies. Social media can help create
relationships with customers, which will lead
to customer loyalty. Small business can use
social media to their advantage to market
their brand without needing a large budget.
Endnotes
1 Lacho, Kenneth J., and Craig Marinello. “How Small
Business Owners Can Use Social Networking to
Promote Their Business.” The Entrepreneurial
Executive. 2010.
http://search.proquest.com.erl.lib.byu.edu/docview/80
7619721?accountid=4488. p. 127.
2 Ibid. p. 127
3 Ibid. p. 127
4 Chatham. “Small Business Trends:Small Business
News: Recommitting to Social Media in 2011.”
Newstex Entrepreneurship Blogs.January 6, 2011.
0421281?accountid=4488.
5 Lacho, Kenneth J., and Craig Marinello. “How Small
Business Owners Can Use Social Networking to
Promote Their Business.” The Entrepreneurial
Executive. 2010.

7619721?accountid=4488. p. 129.
6 Taneja, Sonia, and Leslie Toombs. “Putting a Face
on Small Business: Visibility, Viability, and
Sustainability the Impact of Social Media on Small
Business Marketing.” Academy of Markting Studies
Journal.2014.
45849603?accountid=4488
7 Wallace, David. “How small Business can Benefit
from Social Media/Networking sites.” Agency Sales.
August 2012.
51389378?accountid=4488
Journal.2014.
45849603?accountid=4488
9 Chatham. “Small Business Trends:How to Use
Social Media to Establish Trust.” Newstex
Entrepreneurship Blogs. July 31, 2012.
30268461?accountid=4488
10 Ibid
11 Ibid
12 Ibid
13 Ibid
14 Ibid
15 Ibid
16 Ibid
17 Ibid
Journal.2014.
45849603?accountid=4488. p. 251.
19 Ibid. p. 251.
20 Ibid. p. 252.
21 Ibid. p. 252.
22 Ibid. p.252.
23 Ibid. p. 253.
24 Murphy, Michael. “How to…Use Social Media in
Business.” The Estates Gazette. Aug.28, 2010.
2062217?accountid=4488. p. 91.
25 Ibid. p. 91
26 “Small Business Stuck in Neutral on Social Media.”
Business Wire. Nov. 17, 2011.
4368925?accountid=4488
27 Lacho, Kenneth J., and Craig Marinello. “How
Small Business Owners Can Use Social Networking
to Promote Their Business.” The Entrepreneurial
Executive. 2010.
7619721?accountid=4488. p. 132.
28 Wickenheiser, Matt. “How Should a Small Business
Use Social Media to Succed?” McClatchy – Tribune
Business News. Sept. 23, 2011.
Executive. 2010.
7619721?accountid=4488. p. 130.
30 Wickenheiser, Matt. “How Should a Small Business
Use Social Media to Succed?” McClatchy – Tribune
Business News. Sept. 23, 2011.
Executive. 2010.
7619721?accountid=4488. p. 130.

32 Lockwood, Heather. “Social Media for Your Small
Business.” Rough Notes. Jun 2012.
38452000?accountid=4488. p. 34
33 Geho, Patrick R., Sara Smith, and Stephen D.
Lewis. “Is Twitter a Viable Commercial Use Platform
for Small Business? An Empirical Study Targeting
Two Audiences in the Business Community.” The
Entrepreneurial Executive. 2010.
7620773?accountid=4488. p. 76.
34 Anonymous.“Microsoft Office Live Small Business
and Marketing Expert John Jantsch Team Up to Offer
Tips for Using Social Media to Grow a Small
Business:Free e-book explains how entrepreneurs can
use social media tools to connect with and expand
their customer base.” PR Newswire. Nov. 13, 2008.
35 Lockwood, Heather. “Social Media for Your Small
Business.” Rough Notes. Jun 2012.
38452000?accountid=4488. p. 34-35.

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