the role of social media in driving smb growth

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#inFC14 1 The role of social media in driving SMB growth Market Report: India Full Research Results

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Understand how social media fuels SMB growth, Learn from the results of a research in India on the challenges and opportunities for SMBs utilizing the social channel. This presentation was unveiled at Finance Connect in Mumbai on 10th June 2014, presented to the

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  • 1. #inFC14 1 The role of social media in driving SMB growth Market Report: India Full Research Results

2. #inFC14#inFC14 2 SMEs surveyed across India 168 Influence Primary decision maker or strong level of influence in financial decisions This report explores the way in which SMEs in India make use of social media Small/Medium 1 to 1000 employees INR 5 to 500 crore revenue 3. #inFC14#inFC14 SMEs in India are currently experiencing widespread growth 3 Base: 168 small and medium enterprises 46% 57% 67% 73% 79% Number of employees Number of products or services Overall profitability Number of customers or clients Overall revenue SMEs Experiencing Year Over Year Increase in 4. #inFC14#inFC14 11% 6% 16% 32% 35% More than 3 years India SMEs are seasoned social media users 4 Base: 168 small and medium enterprises Plan to use in the future Just getting started Less than 12 months Business Experience with Social Media 1 to 3 years 5. #inFC14#inFC14 The #1 challenge facing SMEs in todays market is attracting new customers 5#inFC14 Base: 168 small and medium enterprises Attracting new customers 72% Finding/hiring employees 71% Reducing costs 57% Increasing profit margins 54% Training, etc., employees 54% Retaining cur. customers 46% Keeping up w/technology 46% Understanding social media 45% Managing business ops. 44% Marketing and advertising eff. 44% Managing cash flow 42% Time-saving solutions 41% Assessing competition 40% Finding answers to Qs. 35% Getting credit/financing 33% Understanding gov. regs. 21% Challenges SMEs Face in Next 12 Months 6. #inFC14#inFC14 Social media is one of the top three forms of advertising driving revenue growth Advertising Contributing to SME Revenue Growth 6 Base: 133 small and medium enterprises experiencing revenue growth Redirecting websites Online ads not social Offline ads Direct post Events Social media/ social ads Email marketing 17% 22% 24% 25% 38% 39% 46% 7. #inFC14#inFC14 Financial Uses of Social Media by SMEs Keep up-to-date on financial trends 01 60% 02 Gather preliminary financial information 39% 03 Seek advice on a financial decision 34% 04 Evaluate or re-think a previous financial decision 23% 05 Recommend a financial product to others 21% Base: 168 small and medium enterprises 7 69%Discovery 44%Consideration 21%Recommendation 80% 20% Gender Use for Any Financial Purpose The vast majority of SMEs use social media for financial purposes 8. #inFC14#inFC14 More than six in 10 SMEs are open to receiving financial content from LinkedIn Openness to Receiving Financial Content on Social Media Sites 8 of growth businesses are receptive to receiving financial content on LinkedIn 67% 62% 33% 29% 12%33% Base: 168 small and medium enterprises 9. #inFC14#inFC14 This allows LinkedIn to drive action through the content provided to businesses 9 Base: 168 small and medium enterprises 5% 7% 13% 15% 16% 22% 24% 25% 27% 29% 31% Closed a financial account Opened a new financial account Purchased an insurance policy Purchased an investment product Contacted a financial representative Discussed a financial product/policy Shared information about financial trends, etc. Asked a financial professional for information Learned of a financial product/policy Conducted research on a financial product/policy Learned about a financial company/institution SeniorityActions Taken by SMEs as Result of Social Media Use 10. #inFC14#inFC14 1/3 of SMEs activated by social media purchased a financial product or service Path to Purchase 10 DISCOVERY Gather info / stay up- to-date CONSIDERATION Seek advice/info to make a purchase DRIVEN TO PURCHASE ON LINKEDIN (Insurance policy and/or investment product) 34% Base: 109 small and medium enterprises that actioned a response