The use of social media as a marketing channel for both B2B and B2C has been on the rise. Year after year, the number of businesses investing in Social Media Marketing has increased considerably. However, it is still considered one of the toughest channels for revenue attribution. According to data released by Ascend 2 in their report on the most difficult channels for revenue attribution, social media marketing was found to be the most difficult digital channel for revenue attribution, according to 47% of the 270 marketing and sales professionals surveyed. This was followed by Content Marketing and Display Advertising.
However, despite this, social media has risen to be a top marketing channel and has been a trend for some time. The latest research reveals that it has now become the primary channel for many businesses. This trend is especially prevalent among B2B marketers, according to the “2022 State of B2B Digital Marketing” report by Wpromote. The report shows that 50% of B2B marketers now claim social media is their most effective digital marketing channel when it comes to driving revenue, with content marketing (47%) and email (41%) also being popular choices.
The reason for the growth of social media as the primary channel for many businesses is that the pros outweigh the cons, and it is a risk worth taking in the long run. Let’s take a look at the three main reasons why Social Media Marketing has become the primary channel for many businesses:
Higher Conversion Rates:
One of the biggest reasons for the success of social media for business is the higher conversion rates. With a larger audience and increased visibility on social media platforms, companies have more opportunities to convert potential customers. By constantly interacting with customers and followers on social media, companies are able to personify their brand, which in turn increases transparency and consumer trust. Studies have shown that social media has a 100% higher lead-to-close rate compared to outbound marketing, and 66% of marketers have seen lead-generation benefits by using social media platforms for just 6 hours per week.
Improved Brand Loyalty:
Social media marketing has a great impact on brand loyalty as well, which is a crucial aspect for businesses. Retaining customers is cheaper than acquiring new ones, and research has shown that millennials are the most brand-loyal generation, with 50.5% saying they are extremely or quite loyal to their favourite brands. Furthermore, customers are 62% more likely to be loyal to brands that engage with them on social media. These loyal customers also tend to share content and post positive reviews about a brand, known as electronic word of mouth (eWOM), which can help in promoting the brand.
Gaining Marketplace Insights:
Gaining marketplace insights is another key advantage of using social media marketing. Social media platforms provide real-time monitoring of consumer trends which allows brands to keep track of their marketplace and understand what customers are looking for. This feature also enables companies to use social media as a complementary research tool to better understand the marketplace. The use of tools such as Sprout Social can help in measuring engagement and performance, giving brands an opportunity to maximize and update the effectiveness of their social media platforms constantly. This, in turn, can help brands to make better decisions about their products and services and improve their overall marketing strategy.