Social media is online communication that allows you to interact with your customers and share information in real time. You can use social media to:
- reach your customers better
- create online networks
- sell and promote your products and services.
However, there is risk in using social media for your business. Tread carefully and learn both the pros and cons before you start.
Benefits of social media for business
Social media can help you engage with your customers and find out what people are saying about your business. You can also use social media for advertising, promotional giveaways and mobile applications.
Social media can help your business to:
- attract customers, get customer feedback and build customer loyalty
- increase your market reach, including international markets
- do market research and reduce marketing costs
- increase revenue by building customer networks and advertising
- develop your brand
- exchange ideas to improve the way you do business
- recruit skilled staff, for example through job networking sites like LinkedIn
- increase traffic to your website and improve its search engine ranking
- keep an eye on your competitors.
Disadvantages of social media
Social media may not suit every business. If you launch your social media presence without planning, you could end up wasting valuable time and money.
Disadvantages of social media include:
- needing additional resources to manage your online presence
- social media is immediate and needs active daily monitoring
- you may get unwanted or inappropriate behaviour on your social media site
- the risk of getting negative feedback, information leaks or hacking
- the risk of having false or misleading claims made on your social media (by your business or a customer). These claims can be subject to consumer law. For example, if a customer or fan posts misleading or deceptive information, particularly about competitor products or services, you might receive a fine.
To avoid the risks, have a social media strategy with policies and procedures in place before you start.
