Why Companies Invest in Social Media Applications

Social media is no more an optional thing for companies; rather it has become a must-have. Businesses of all sizes across all industries are trying to make the most of the reach and openness of the social media networks like Facebook, Twitter, LinkedIn, YouTube, and so on.

What Brings Companies to Social Media

Apparently, it’s the increasing number of social media users, social media time spent and quality of user engagement that lead to increased conversion.

As of 2017, daily social media usage of global internet users amounted to 135 minutes per day, up from 126 daily minutes in the previous year.

Benefit from Investing Time and Money in Social Media

1. Gain valuable customer insights

Social media generates a wealth of data about customers’ demographics, interests, and preferences. It also measures their dissatisfaction regarding a situation, product or service. According to HootSuite, a noted social media firm that offers social listening tools, every day there are over 500 million Tweets, 4.5 billion Likes on Facebook, and 95 million photos and videos uploaded to Instagram.

Hencsocial media for customer servicee, reading analytics, businesses can gain valuable, actionable customer insights to improve their marketing, employee engagement, talent acquisition, product/service innovation and other key aspects.

2. Increase brand awareness and loyalty

Prospects and customers tend to discover a brand, product or service on social media channels they run. Thus, a healthy social media presence helps in extending the reach, awareness, and loyalty. A study by The Social Habit tells that 53 percent of Americans who follow brands on social are more loyal to them.

Must read: How Much Does it Cost to Develop a Social Media App like Facebook

3. Deliver targeted ads with real-time results

Almost all social channels utilize their platform to generate revenue through ads. The growing worth of social media marketing budget advocates the marketing and advertising capability of social channels. According to Statista, of the $86 billion budget of digital marketing, 13.5 is cornered by social media alone (2017). The lucrative market has pushed many a new startup to invest in social media application development projects.

The analytics of social media is strong enough to track and measure the performance of social media apps in real-time, thereby enabling marketers and businesses to augment their campaigns for better results.

4. Generate higher converting leads

The conversion probability of a social media leads is much higher than those generated through other search or display networks. In a survey by MHI Global, top-notch companies rated social media as the most effective way to identify and grab business opportunities. Around 75% of the participants, admitted the worth of social selling. They witnessed an increase in sales in 12 months after resorting to social media for lead generation and customer acquisition.

5. Provide rich customer experiences

It’s common to see customers trying to find out brands/service providers on social platforms, for reasons like seeking assistance, making a purchase decision, etc.. It’s been estimated that over 67 percent of consumers now go to social media for customer service.

And the companies that pay serious attention to them get benefitted as follows: improved brand reputation, more referrals with word of mouth, more repeat customers (selling product/service to existing customers requires much lower effort or investment than to new customers). Aberdeen Group claims that companies engaging in social customer service see much bigger annual financial gains (7.5 percent YOY growth) vs. those without (2.9 percent).

Must read: How Much it Costs to Build a Social Media App Like WhatsApp