Social media marketing has become an essential part of the modern customer journey, underlining the importance of social media marketing for businesses of all sizes 1. Even as economic constraints bear down on marketing budgets, executives are still prioritizing social media investments—and with good reason. As consumers spend more time on social media, the channel offers unparalleled access for brands to influence purchase decisions at every stage, from discovery to advocacy .
Here are some reasons why social media marketing is important for businesses across industries:
1. Builds brand reputation and loyalty: Reputation is everything, especially in a challenging economic environment. According to The 2023 State of Social Media Report, building brand reputation and loyalty is a top priority for business leaders across industries, especially as they weather fluctuating market conditions. It’s widely accepted that social media plays an increasingly important role in reputation management. In fact, 94% of leaders acknowledge that it has a positive impact on brand loyalty. Social media allows brands to connect with their audience on a more personal level, creating authentic and lasting connections that can withstand both good times and bad .
2. Informs stronger competitive positioning: Getting an edge on the competition today can inform stronger business decisions tomorrow. However, if you’re not using social media to keep tabs on what your competitors (and their customers) are prioritizing, you’re missing out. The real-time nature of social media offers an unrivaled opportunity to observe and analyze competitor strategies. Social media marketing’s role in competitive intelligence can look like this: Aggregate data on customer care interactions reveals strengths and weaknesses of competitor products or services. Content themes provide insights on the unique value props that competitors are highlighting, as well as opportunities to further differentiate your brand. Share of voice data measures the market your brand owns online compared to your competitors.
3. Increases website traffic: Social media marketing can help in building your company’s brand, driving website traffic, and increasing sales. According to Statista, increased exposure is the leading benefit of social media marketing, followed by increased traffic and more leads . When done correctly, social media marketing can have a positive impact on your brand. It can help humanize your company while building trust, loyalty, authority, and recognition .
4. Boosts sales: Social media marketing can help you connect with your customers, increase awareness about your brand, and boost your leads and sales . Savvy brands across industries use social media to wow their audiences, grow their market share and boost sales .
