14/10/2010
Small businesses can use social networks to drive growth and obtain valuable customer feedback, according to the Forum of Private Business (FPB).
A recent FPB survey found that more than half (52%) of the Forum's members are now using social networking sites such as Facebook, Twitter and LinkedIn to communicate with potential and existing clients.
Of the 52% that use social networking, 18% described it as a 'useful' addition to their business strategy, and 7% went as far as describing social platforms as 'very useful.'
A number of participants stated that they were still unconvinced of the business benefits of social networking. However, FPB spokesperson Phil McCabe says that, used in the right way, social networks can really contribute to an SME's success.
"We believe that social media does hold a great deal of potential for many SME's. Its conversational, real-time nature makes it ideal for entrepreneurs and small, dynamic firms which often have much more relaxed attitudes towards public relations than big corporations," The Publican quoted Mr McCabe as saying.
Most SME's would have to set aside special budgets for promoting their services and communicating with customers. Social networks allow them to do this PR work for free and make substantial savings. Social networking, combined with the use of invoice finance services, can help SME's generate extra cash flow to fund growth and investment in other areas.
Customer feedback is vital for small firms looking to develop and improve their services, but satisfaction surveys can be time-consuming and expensive to produce. Social networking allows SME's to gather opinions for free and, in some cases, almost instantly.
"Sites like Twitter can provide valuable and cost-free feedback on customer and client satisfaction," Mr McCabe explained.
Joseph Jeffries