Published on March 19, 2014
Commissioned study conducted by: How to Engage SMBs with Content on Social Media Dial-in: 866-469-3239 Access Code: 926 806 524 Password: areyouin Twitter: @LinkedInMktg 1
©2013 LinkedIn Corporation. All Rights Reserved. 2 Jake Raroque Insights Manager LinkedIn Jennifer Grazel Global Head of Category Development Financial Services LinkedIn
Why should you care about SMBs? ©2013 LinkedIn Corporation. All Rights Reserved. 3 SMBs contribute $5.5 trillion in annual revenue (Source: Dun and Bradstreet) Small businesses create seven of every ten new jobs. (Source: SBA Office of Advocacy) Young firms in growth mode are the largest contributors to job growth. (Source: Goldman Sachs) 1 23
They’re optimistic about 2014 and focused on marketing 4 8 in 10 think 2014 will be better than 20131 41% say increasing marketing and brand presence is their top business priority1 10.7% YoY increase in marketing budgets2 1 - RocketLawyer, 2013 Semi-Annual Small Business Survey 2 - Borrell Associates, Dec. 2013
We wanted to understand how and why SMBs use social media DEFINING SMBs Small $1M to $9.9M USD Medium $10M to $49.9M USD 998 Small and Medium Businesses surveyed in the US and Canada ©2013 LinkedIn Corporation. All Rights Reserved. 5
Key Findings 6 There is a prime opportunity for financial companies to influence SMBs on social media – especially on LinkedIn There is a strong correlation between increased social media spend and hyper growth Social media: ideal for marketing, but also for learning
7 Social media: ideal for marketing, but also for learning
8 out of 10 SMBs use social media for their business 8 81%of SMBs are Current Users of Social Media 9% are Future Users
Among social media users, nearly all use it for marketing TOP MARKETING REASONS* Maintain a company presence and identity Generate word-of-mouth Deliver content and new information about company Advertise to help increase awareness Advertise to generate new leads 1 2 3 9 4 5 *Base: Current Social Media Users Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses Use Social Media for Marketing Needs 94%
The reason? Social media addresses their #1 challenge ©2013 LinkedIn Corporation. All Rights Reserved. 65% State that attracting new customers is their top business challenge 61%Find social media useful in gaining new customers 10
Half also use social media to learn and share resources TOP REASONS FOR LEARNING* Access a network of peers to ask questions Learn from experts in my industry Obtain insights or best practices Find information and opinions to answer my questions 1 2 3 Use Social Media for Learning 49% 11 4 *Base: Current Social Media Users Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
12 Strong correlation between increased social media spend and hyper growth
The majority of SMBs are growing and one in six are in hyper growth mode 13Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses GROWTH Increase in Overall Revenue Compared to Last Year 48% 36% 16% NON-GROWTH Decrease/No Change in overall revenue YoY HYPER GROWTH Significant Increase in Overall Revenue YoY
Hyper growth and increased spend on social media are strongly correlated 14©2013 LinkedIn Corporation. All Rights Reserved. Report Increased Social Media Spend Hyper Growth 73% Non-Growth 42%
47% 57% 59% 72% 73% Social media is a top channel where SMBs in hyper growth have increased spend Base: Current Social Media Users ©2013 LinkedIn Corporation. All Rights Reserved. 15 % of Hyper Growth SMBs Reporting Increased Spend Social Media and Social Ads Email Marketing Events Online Ads Offline Ads
SMBs in hyper growth find social media to be very effective in achieving key marketing goals ©2013 LinkedIn Corporation. All Rights Reserved. % Reporting That Social Media Is Effective For... WORD-OF -MOUTH CONTENT MARKETING LEAD GENERATION BRANDING 90% Maintaining a company presence & identity 88% Generating word-of- mouth about a company 89% Delivering content & information about company 82% Advertising to generate new leads 16
17 Social media is one of the most influential touch points when SMBs choose a financial service provider
Over two-thirds of SMBs on social media use it for financial services TOP REASONS* Keep up-to-date on financial trends Gather preliminary financial information Seek advice on a financial decision Evaluate or re-think a previous financial decision Recommend a financial product to others 1 2 3 4 5 Have Used Social Media for Finance-Related Reasons 68% Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses 18
Top 6 Actions As A Result of Hearing on Social Media 0504 01 Conducted additional research on a financial product 06 Asked a financial professional for additional info Shared information about financial trends, products Discussed a financial product with a friend or colleague 02 Learned of a new financial company 03 Learned of a new financial product Social media triggers SMBs to learn more about financial products and companies Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses 19
Among SMBs who use social media for both discovery and consideration, almost all are driven to action 20©2013 LinkedIn Corporation. All Rights Reserved. Path to Purchase DISCOVERY Gather info / stay up- to-date CONSIDERATION Seek advice/info to make a purchase DRIVEN TO ACTION (Learn / Discuss / Purchase) 93%
...and about two in five are driven to purchase 21©2013 LinkedIn Corporation. All Rights Reserved. Path to Purchase DISCOVERY Gather info / stay up- to-date CONSIDERATION Seek advice/info to make a purchase DRIVEN TO PURCHASE 37%
29% 22% 21% 20% 16% There is a significant opportunity for financial service providers to cater to SMBs’ unmet needs 22 *Base:: Current Social Media Users **Base: Those who expected info Top 5 Types of Finance Content expected on social but not received* Best practices, how-to guides, checklists New innovation and technology developments New product information Company background Industry news/strategy information
23 In the path to purchase for financial services, SMBs consider LinkedIn to be one of the most trusted platforms
LinkedIn is the destination SMBs are most receptive to learning about financial products 24*Base: Current Users of Each Social Media Site Openness to Receiving Financial Information On Social Media Sites* 57% 49% 47% 47% 45% 38% of hyper growth companies are receptive to finance content on LinkedIn 69%
Only LinkedIn provides the 4 C’s 25 CREDIBILITY Nearly 3 in 4 agree LinkedIn allows them to build credibility. CONNECTION Over 2 in 3 agree LinkedIn lets them connect with vendors or potential partners. CONTEXT Over 2 in 3 agree LinkedIn provides a relevant context to promote and advertise their company. COMMUNITY Nearly 2 in 3 agree LinkedIn provides access to a broader community of other companies to seek opinions.
...providing a valuable resource across different activities in the SMB value chain *Base: LinkedIn Users. 26 Open Innovation Marketing & Sales Sourcing Customer Service
Build relationships through multiple touch points on LinkedIn Build your followers Encourage referrals and recommendations Provide real-time assistance Build communityPublish thought leadership LIKE ▪ SHARE ▪ COMMENTFOLLOW INMAIL SPONSORED UPDATES 27 GROUPS
Building community by leveraging LinkedIn data ©2013 LinkedIn Corporation. All Rights Reserved. 28 SPOTLIGHT AD API
Targeting small business owners with Sponsored Updates ©2013 LinkedIn Corporation. All Rights Reserved. 29 SPONSORED UPDATES
Demonstrating expertise and commitment to customers with Groups ©2013 LinkedIn Corporation. All Rights Reserved. 30 GROUPS DISPLAY
Best practices for marketers ©2013 LinkedIn Corporation. All Rights Reserved. 31 Enable learning throughout each phase of the purchase path Target hyper growth companies Build your credibility by facilitating open dialogue with SMBs Fulfill unmet content needs Provide resources for the entire SMB value chain
32 Questions? Read the whitepaper for more info
33 Visit our new Small Business Resource Center smallbusiness.linkedin.com
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