Looking at the reality that 90% of small businesses are not doing that well on social media. It means that everybody have a good chance of beating 90% of our industry competitors simply by leveraging on the effective social media marketing and branding strategies. Right? So let’s get started!
Renowned book author, Robert Kiyosaki once said, “Inside of every problem lies an opportunity.”
Why do 90% of small business and startup ecommerce website businesses fail?
Did you know that recent studies have shown that 50 percent of small businesses will fail within the first year? How about the fact that a staggering 95 percent will close their doors before they hit their fifth year of operation? That one seems a bit hard to believe but in today’s economy, it could be true. Here are some additional stats that may surprise you:
40% of small businesses are profitable.
30% break even.
30% are continually losing money.
9% have a chance of surviving 10 years.
Before you get discourage, keep reading!
Keep in mind that many factors go into the success or failure of any small business. Specifically, we will be talking about social media marketing and what is that one reason that makes small businesses fail in their social media marketing?
In a study of small business that are in social media, for every 25th to 31st company researched, only one company was successful on leveraging social media marketing to their brand advantage. That means there is an estimated 90% failure rate among small businesses on social media.
Most companies doing B2B business, except for the marketing companies, do not have a Facebook page. While for those B2B companies that do have a Facebook page, they do not fully make use of Facebook to target and find their potential customers. Some of them treat their Facebook page like a “personal diary” rather than as a platform for them to build their presence and get customers.
Most small businesses do not have a proper social media URL. Some of the URL are not easy to remember. The URL link is often too long and there is no proper brand positioning. Most small businesses merely are just “filling up space” by registering their names on social media. That is all. There is very little update from them on social media. Some companies do not even have a Facebook post yet even though their Facebook pages had been created years ago.
Some business rely heavily on traditional mass media ads
And here is another one, small businesses that advertised heavily on traditional mass media do not do the same thing on social media. Some renowned companies in Singapore do not even have a social media page. It is either they do not believe in the power of social media or they do not have the manpower to help them manage their brands on social media.
Most companies that failed on social media treat social media as an advertising bulletin board. Their content on social media are all shout outs on their promotion, discounts and offers. Nothing much that is educational or of value to the consumers is posted in their content. Some companies even posted unrelated content or events such as their company’s outing or staff’s birthdays.
SO, what is the #1 reason why 90% of small businesses fail in their social media marketing?
Are you ready for this?
Here it is!
The #1 reason why small businesses and ecommerce websites fail in their social media marketing is that,
Small businesses and ecommerce website who fail in social media marketing do NOT have a clear digital marketing strategy. They do NOT have a clear PLAN.
“You fail to plan, you plan to fail!”
The first thing that a small business and ecommerce website should do is to incorporate a social media marketing plan into their business model. Recent research showed that shockingly, many organizations are doing digital marketing, but they don’t have a strategy/. The reality is that digital channels are still relatively new and fast-changing, so many businesses have not responded well to this and their business is at risk.
We believe that small businesses – not only small businesses – but businesses in general, need to first define a separate digital plan to quantify the case for investment in digital marketing and change your approach to managing digital marketing. Then move to a better approach where it becomes an integral part of your marketing strategy.
Competition is fierce online. To win, you need to first have a PLAN.
How to Get your organization, small business, ecommerce website have a clearly defined social media marketing strategy?
- Create a specific social media marketing strategy plan NOW! One that defines digital channel for each major platform to provide focus and direction for the future.
- Make sure your social media marketing plan is well integrated will all marketing communications and aligns with your business objectives. Some organizationss have defined digital marketing strategy but is separate from its main marketing strategy. While other business are doing digital marketing, but have no defined strategy. Do not treat social media as just an asterisk on your overall digital marketing plan. Social media has now become the dominant platform for people from all walks of life to come in an interact.
- Go where your potential customers are hanging out!
- There must be a defined target.Structure your social media marketing plan to define the opportunities, strategies, and actions you will undertake. You digital plan will be believable if you have SMART objectives for each part of your customers journey experiences. Structure it around these percieved experiences.
Two more tips on evading the 90% of small business and startup ecommerce website businesses who fail.
- You can build your audience by integrating paid social media ads, and organic ones. Another one is by using content marketing and persuasion to prompt product or content interaction and leads.
- Grow your social media audience. Build awareness for your brand, products and services on as many social media platforms you can. This will build traffic to different web presence like your main ecommerce website, microsites, social media pages. Maximize your reach using continuous inbound campaigns to create multiple interactions using paid ads and organic touchpoints.
Optimize your social media marketing strategy!
In conclusion, this is how you avoid being counted for the stats.
PLAN. integrate your social media marketing plan with your overall business plan. Social media is not just a place for social interaction, it has now dominated the marketing landscape in the last 5 years. Failing to recognize this is the #1 reason why 90% of ecommerce businesses fail in their digital marketing effort.
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