The Impact of Social Media on Customer Behaviour and Its Implications for Marketing

The platform has given businesses an opportunity to reach a wider audience and has made it possible to interact with customers in real-time. Social media is not only affecting our personal lives but it has also made a significant impact on customer behaviour and it has changed the way businesses approach marketing.

This topic will explore the impact of social media on customer behaviour and its implications for marketing.

Here are the impacts of social media on customer behaviour:

Increased awareness and access to information

Social media has given customers access to a vast amount of information at their fingertips. With a few clicks, customers can find out about a product, read reviews, and compare prices. The result is that customers are now better informed and have higher expectations from businesses.

According to a study by GlobalWebIndex, 75% of customers use social media to research products before making a purchase. The reason why customers use social media as a research tool is because it is convenient, easily accessible, and provides a wealth of information in one place. By using social media to research products, customers can make informed decisions and find the best deals before making a purchase. This highlights the importance of businesses having a strong social media presence and providing accurate and up-to-date information about their products.

Influencer marketing

Social media has given rise to influencer marketing, where businesses partner with individuals who have a large following on social media to promote their products. Influencer marketing is seen as a trustworthy form of advertising because customers are more likely to trust recommendations from people they follow and admire. A study by Nielsen found that 92% of customers trust recommendations from people they know, while only 47% trust advertisements. This is because people have a more personal connection with those they know, and they value their opinions and experiences.

On the other hand, advertisements are perceived as less trustworthy because they are often perceived as biased or having a commercial purpose. This highlights the importance of influencer marketing and the power of recommendations from people we trust. For businesses, this means that leveraging influencer referrals and building strong relationships with customers can be more effective than traditional advertising methods.

Customer engagement

Social media has made it possible for businesses to interact with customers in real-time. By responding to customer inquiries and feedback, businesses can improve customer satisfaction and loyalty. According to a study by Hootsuite, customers who receive a response from a business on social media are more likely to recommend the business to others. A response from a business can show that the business values its customers and it is dedicated to providing excellent customer service. This can lead to increased customer satisfaction and loyalty, and can also increase the likelihood that customers will share their positive experience with others.

This shows us the importance of businesses being active and responsive on social media, as a positive customer experience can have a significant impact on the business's reputation and its ability to attract new customers.

Customer reviews

Social media has made it easier for customers to share their opinions and experiences with others. Positive reviews can help businesses to build their reputation and attract new customers, while negative reviews can harm a business's reputation. According to a study by BrightLocal, 90% of customers read online reviews before making a purchase, and 88% of customers trust online reviews as much as personal recommendations. Online reviews provide customers with valuable information about the product or service they are considering, such as the quality, value, and customer experience.

Customers are relying more and more on online reviews to inform their purchasing decisions which shows us that the importance of businesses having a strong online presence and encouraging customers to leave reviews as a positive review can have a significant impact on the business's reputation and its ability to attract new customers. While on the other hand, negative reviews can have the opposite effect, so it is important for businesses to monitor and respond to customer feedback in a professional and timely manner.

Here are the implications of social media for marketing:

The importance of social media presence

With social media playing a significant role in customer behaviour, it has become essential for businesses to be active on social media. A strong social media presence can help businesses to reach a wider audience, engage with customers, and build their reputation. According to a study by Statista, 77% of small businesses use social media to promote their products and services.

Social media provides a cost-effective and accessible way for small businesses to reach a large audience and promote their offerings. By having a presence on social media, small businesses can increase their online visibility, build their brand, and connect with potential customers. Social media allows small businesses to engage with their audience and respond to customer inquiries in real-time, which can help to build trust and loyalty with customers.

Therefore, it is important that all businesses having a strong social media strategy and actively using social media to promote their products and services.

Personalisation

Social media has made it possible for businesses to target specific customers with personalised messages. By analysing customer data and behaviour, businesses can create targeted campaigns that resonate with individual customers.

A study by Epsilon found that personalised emails have an open rate 29% higher than non-personalised emails. Personalised emails can include the recipient's name, location, or previous purchases, among other things.

By personalising emails, businesses can make the recipient feel valued and show that they are paying attention to their preferences and needs. As a result, personalised emails are more likely to be opened, increasing the chances of the recipient engaging with the businesses content and taking the desired action.

Need for authenticity

Customers today are more skeptical of traditional advertising and marketing tactics, and they are more likely to trust businesses that are authentic and transparent. Social media has provided a platform for businesses to be more authentic and transparent by sharing behind-the-scenes content and showcasing the people behind the business. This type of content allows customers to connect with the business on a more personal level and builds trust between the business and its customers.

Authenticity is especially important in the age of social media, where customers have access to a vast amount of information and they are more informed than ever before. If a business is not authentic, customers will quickly see through the facade and lose trust in the business. On the other hand, businesses that are authentic and transparent can build a strong reputation and attract new customers.

Social media has made it possible for businesses to show their personality and engage with customers in a more authentic way. By sharing their values, mission, and unique story, businesses can differentiate themselves from their competitors and build a loyal customer base. This type of content is especially important for small businesses, where building a strong brand is essential for long-term success.

Customer engagement

Social media has made it possible for businesses to interact with customers in real-time and respond to their inquiries and feedback. This type of engagement can help businesses to improve customer satisfaction and loyalty. According to a study by Hubspot, businesses that respond to customer inquiries on social media see a 19% increase in customer satisfaction.

Social media has become a popular channel for customers to reach out to businesses with questions and concerns. By responding to these inquiries, businesses can demonstrate their commitment to providing excellent customer service and can build trust and loyalty with their customers. A prompt and helpful response can also resolve customer issues and prevent them from escalating, leading to a more positive customer experience. This increase in customer satisfaction can have a positive impact on the business's reputation and its ability to attract new customers.

This highlights the importance of businesses being active and responsive on social media and providing excellent customer service through this channel.

Content creation

Social media has made it necessary for businesses to create engaging and relevant content that resonates with their target audience. A strong content strategy can help businesses to build their brand, increase their online visibility, and attract new customers. According to a study by the Content Marketing Institute, 91% of B2B marketers use content marketing to reach their target audience. Content marketing involves creating and distributing valuable and relevant content to attract, engage, and retain customers.

B2B marketers use a variety of content formats such as blog posts, videos, infographics, and ebooks to educate and inform their target audience about their products and services.

Content marketing helps B2B marketers establish themselves as thought leaders in their industry, build trust and credibility with their target audience, and drive qualified leads to their business. This high usage of content marketing by B2B marketers highlights the effectiveness of this strategy in reaching and engaging with a target audience and ultimately achieving marketing goals.

With the continued growth of social media, it is essential for businesses to stay up-to-date with the latest trends and to adjust their marketing strategies accordingly.