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SMEs by Use of Social Media - Part 2
Purposes of Social Media
Customer Relationship Management (CRM)
In a business normally it is highly relevant as well as valuable to identify what customers really want, what they are thinking about and what they are about to do next. And from this approach, emerged the term social CRM. Social CRM is a way to deal with the business that formally perceives the role of the client as a key in comprehension and handling of conversations around the brand, product, and service. Employees are the main actors in influencing CRM and therefore recruitment of workers who have knowledge of social media is important to a business. These employees build a channel of communication between the organization and the customers. The availability of new, talented workers are essential for the adoption of social media tools in any enterprise. Some research findings showed 77% of respondents agreeing that there was an amelioration in CRM within SMEs.
Customer knowledge accumulated from social media is vital for the development of a business. Usage of social technologies gives experiences, considerations and thoughts on an improvement of service towards clients and enable businesses to find creative approaches to managing the business.
Social media sites such as Twitter, Facebook, and YouTube are something that people usually make use of on an almost daily routine. Among these individuals, some are workers, clients or even suppliers. These social media sites are sometimes used to promote products so that it is better known by people and therefore attract customers. Advertising through social networks has today become a rising trend and that’s why we observe so many business owners opting for the same.
Small and Medium Enterprises
Small and medium enterprises are classified in unlike manners across countries based on their criteria like rules and regulations. The term SME involves enterprises from all the economic sectors. There is no difference between manufacturing and services sector for small businesses meaning that there are no specific detailed sector criteria used. Instead of it, the turnover criteria is utilized to identify which businesses can be termed as SMEs. Moreover, it has to be taken note that medium-size and small enterprises are characterized independently as the former one are more refined by nature and the small sized enterprises are typically portrayed by their more ‘formative’ level of operations.
An enterprise with an annual revenue less than ten million rupees is characterized as a small enterprise while a medium enterprise is one with an annual turnover greater than ten million rupees but below fifty million rupees. However European commission utilizes two deciding elements to identify the small and medium enterprises, the number of people employed and either turnover or balance sheet total. According to the European commission, a small is one which possesses less than ten employees and has a turnover equal to or less than two million euros and or equal to or less than two million balance sheet total.
Drivers and Hindrance to the adoption of social media in SMEs
The acceptance of the Internet in a business can expand customer and market base and this positively contributes to the business’ growth strategy. Let's look at some motivators and inhibitors of social media adoption in the SMEs.
If the competitiveness is higher in the foreign market, the readiness to accept social media in SME in will more tempting. Those who are not willing to embrace social media as an effective tool for their businesses may struggle behind. Sometimes in order to compete with larger organizations, we have to be up to date.
Willingness of Business Owners
If the owner is interested in innovation via technology, this can act as a driver and this will motivate the proprietor to use tools of social media in his business so as to improve and fasten business dealings. However, this can be responsibility or choice key administration of the SME too to take the decision of bringing up social media tools in the organization.
Anticipation in Business World
Anticipation is a very crucial task to business owners and management as it can prevent serious damages like big losses. Due to the emerging acceptance of internet and social media, businesses are facing many unanticipated events. The social media tools have urged businesses to reconsider how they are interacting with their clients. If your rival is using social media to promote his products and is attracting more clients than you, then you better follow suit in anticipation that the former doesn’t ‘steal the show’.
Shortage of Resources
A lack of resources, for example, a shortfall of skilled and experienced workers can be a hurdle to SMEs who are about to apply social networks in their organizations.
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© 2017 Ashish Dadgaa