Social media trends for SMEs

09/02/11

This is the second in a series of articles by our partner Cate Trotter from Insider Trends. Cate is an expert in analysing consumer trends and regularly runs workshops in the Centre.

As part of ‘Web in Feb’, we asked Cate some questions around how small businesses can use the web and social media.

What do you think will be the major online and social media business trends in 2011?

By the end of 2011, the majority of phones in use will be smart phones, which will have a big impact on how customers learn about new products and compare prices. Some of the big issues for smaller businesses are how they can add their products and services to price comparison apps, and how their websites appear when viewed from smart phones.

It won't be so easy for small businesses to appear 'big' from now on. While small businesses stick to simple text-and-image websites and explore the potential of Facebook pages and Twitter accounts, bigger businesses will increasingly unveil bespoke, high-budget websites and apps designed by specialists. More and more large retailers are enabling customers to personalise products, interactive videos are being uploaded to YouTube letting customers click on items that interest them, bespoke stores are being set up inside Facebook, experiments are being conducted with augmented reality, and lots more.

Although smaller businesses won't be able to have such an impressive web presence, their independence and unique way of doing things will still appeal to customers looking to buy from grassroots businesses. More and more free or affordable online tools will let small businesses successfully spread the word.

What three things would you recommend businesses watch out for when trying to build their online business?

You don't need to spend a huge amount of money to create a good online business. There are lots of tools that can let individuals create websites, online shops and apps without requiring a huge amount of technical knowledge or a high budget. You can do an enormous amount yourself, using cheap or free online tools and gaining knowledge any knowledge you need from books. If you do decide you need an expert to help your business, you can find help from more affordable specialists based in other countries at sites like www.peopleperhour.com or www.elance.com.

Functionality still trumps aesthetics every time. If a site is pretty but hard to use, users won't stay. Ultimately, a site that looks pretty simple but takes people to what they're looking for quickly will be much more successful.

Be aware that home delivery concerns deter 44% of internet shoppers. The user experience includes aspects such as payment, refunds and delivery, so make sure you make all of them as straightforward as possible. Some retailers are beginning to get it right, but the vast majority could make big improvements.

Do you think social media can play a part in growing a business and if so, how?

When it's used well, it definitely can. Social media is great for connecting with new potential clients, encouraging customers to tell each other about what you do and reminding people of your presence.

Do you think businesses can realistically get a return on investment from social media business activity?
It depends whether the business's target audience also use the social media sites. About 3/4 of teenagers use social networking sites, but only 1 in 4 people over 65 have accessed the internet in the last 6 months. It's also worth bearing in mind that considerably more women than men use Facebook across all age groups.

If the business's target audiences do spend time online, real return on investment comes from creating things that either bring real benefit or are things that customers naturally want to tell each other about.