Businesses still missing out on social media opportunities, Sensis report reveals

The findings, from a new Sensis Social Media Report, come just days after a separate report found a majority of SMEs are now at least putting money in their marketing budgets for social media.

"The biggest challenge for businesses in social media is two-way engagement with consumers," says Sensis group manager of emerging business and innovation, Simon Betschel.

"There needs to be an element of listening and looking at what people are saying."

The Sensis report found Facebook remains the most popular social network, used by 97% of respondents who use social media and by 60% of internet users overall.

But only 14% of small businesses, 25% of medium businesses and 50% of large businesses have a social media presence. And social media is usually only given 5% of a total marketing budget, the report has found.

"I think these results show that obviously there is a need for businesses to enter this space, but there is also a great number that are actively engaged, and they have a really good presence and are working well," Betschel says.

Users are beating out businesses when it comes to social networking, and the report identifies many SMEs are missing out on opportunities to market to these users.

For instance, 42% of research for products on social media is for clothes and fashion items, with 39% devoted to electrical goods and 28% for furniture. The Sensis figures also show 12% of users overall are researching products on social media.

"The important figures are after that," Betschel says, "because you see that more than one third of those people actually purchased something after they searched, and 70% of those purchases were made online."

"So you see a direct correlation between people searching for brands on social media, then deciding to purchase a product and actually doing so all online. It shows social media has become a powerful driver for brand engagement."

The research also shows two-thirds of social networking users research a product before they buy, reading an average of six reviews. And many are most interested in finding discounts, giveaways and invitations through social media pages.

Betschel says this provides great opportunities for businesses to start speaking with customers online and offer them products they want – but they face a difficult challenge of overcoming the desire to just advertise in the traditional ways.

"We've noticed that businesses are still coming to terms with this real-time engagement of users, and participating in the conversation instead of controlling it. Being social is connecting with other users, but you need to continually work at it."

"This is the biggest challenge for businesses. There is an element of listening, and then talking, but for these consumers it's all about relevance. It's real time, so you can listen to what they are looking for and give it to them, otherwise they get turned off."

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written by photoman001, May 25, 2011

Funny that this report should come from Sensis. Like many others I attended the Internet Show in Melbourne recently where Sensis was the laughing stock of the show. They had a central location and a competition running with a car and promo girls but the people they brought along had no idea how to market an online business. As a sales professional I took several potential clients to the Sensis stand to give them an example of what NOT to do at such an exhibition. If Simon Betschel wants to talk to me then I can point out the errors of their presentation. Feel free to pass my email address onto him as I did think to contact Sensis but thought I might just finish up with the person who organised their exhibit and it would stop there.

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written by Robert McIntosh, May 25, 2011

"
And many are most interested in finding discounts, giveaways and invitations through social media pages.
"

For this very reason we're advising businesses to create a coupons page to engage social media and website visitors.

"77% of sm users are seeking incentives like coupons, discounts, or freebies as enticements for engagement."
http://www.mpdailyfix.com/new-media-customers-hard-to-find-easy-to-lose/

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written by photoman001, May 25, 2011

Yes Robert I saw an article recently in response to the coupon boom. Companies use the coupon sites in an effort to market and advertise their business and sell the coupon at 20% of the usual price. The promotions company takes half so the seller gets 10% but hopes to gain further business and sales from this promotion. Unfortunately most are now finding that people redeem the coupon and spend no more money and don't return as there are so many other coupon offers going everyday. I don't know of any business that can afford to sell an item or service at 10% of the RRP and not make a loss on it. So with this in mind why are these coupon sites being snapped up for multi millions of dollars and why is there no shortage of businesses virtually giving away their products?