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Commissioned study conducted by:
How to Engage SMBs with Content on Social MediaDial-in: 866-469-3239Access Code: 926 806 524Password: areyouinTwitter: @LinkedInMktg
©2013 LinkedIn Corporation. All Rights Reserved. 2
Jake RaroqueInsights Manager
Jennifer GrazelGlobal Head of Category Development
Financial Services
©2013 LinkedIn Corporation. All Rights Reserved. 3
Why should you care about SMBs?
SMBs contribute $5.5 trillion in annual revenue(Source: Dun and Bradstreet)
Small businesses create seven of every ten new jobs.(Source: SBA Office of Advocacy)
Young firms in growth mode are the
largest contributors to job growth.
(Source: Goldman Sachs)
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They’re optimistic about 2014 and focused on marketing
8 in 10 think 2014 will be better than 20131
41%say increasing marketing
and brand presence is their top business priority1
10.7%YoY increase in
marketing budgets2
1 - RocketLawyer, 2013 Semi-Annual Small Business Survey 2 - Borrell Associates, Dec. 2013
©2013 LinkedIn Corporation. All Rights Reserved.
We wanted to understand how and why SMBs use social media
DEFININGSMBs
Small$1M to $9.9M USD
Medium$10M to $49.9M USD
998 Small and Medium Businesses surveyed in the US and Canada
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Key Findings
There is a prime opportunity for financial companies to influence SMBs on social media – especially on LinkedIn
There is a strong correlation between increased social media spend and hyper growth
Social media: ideal for marketing, but also for learning
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Social media: ideal for marketing, but also for learning
8 out of 10 SMBs use social media for their business
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81%of SMBs are Current Users of Social Media
9%
are Future Users
Among social media users, nearly all use it for marketing
TOP MARKETING REASONS*
Maintain a company presence and identity
Generate word-of-mouth
Deliver content and new information about company
Advertise to help increase awareness
Advertise to generate new leads
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9
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*Base: Current Social Media Users Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
Use Social Media for Marketing Needs
94%
©2013 LinkedIn Corporation. All Rights Reserved.
The reason? Social media addresses their #1 challenge
65%State that attracting new customers is their top business challenge61%
Find social media useful in gaining new customers
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Half also use social media to learn and share resources
TOP REASONS FOR LEARNING*
Access a network of peers to ask questions
Learn from experts in my industry
Obtain insights or best practices
Find information and opinions to answer my questions
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Use Social Media for Learning
49%
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*Base: Current Social Media Users Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
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Strong correlation between increased social media spend and hyper growth
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The majority of SMBs are growing and one in six are in hyper growth mode
Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
GROWTHIncrease in Overall Revenue Compared to Last Year
48%
36%
16%
NON-GROWTHDecrease/No Change in
overall revenue YoY
HYPER GROWTHSignificant Increase in Overall
Revenue YoY
©2013 LinkedIn Corporation. All Rights Reserved. 14
Hyper growth and increased spend on social media are strongly correlated
Report Increased Social Media Spend
Hyper Growth
73%
Non-Growth
42%
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47%
57%
59%
72%
73%
Social media is a top channel where SMBs in hyper growth have increased spend
Base: Current Social Media Users©2013 LinkedIn Corporation. All Rights Reserved.
% of Hyper Growth SMBs Reporting Increased Spend
Social Media and Social Ads
Email Marketing
Events
Online Ads
Offline Ads
©2013 LinkedIn Corporation. All Rights Reserved.
SMBs in hyper growth find social media to be very effective in achieving key marketing goals
% Reporting That Social Media Is Effective For...
WORD-OF-MOUTH
CONTENT MARKETING
LEAD GENERATION
BRANDING
90%Maintaining a
company presence & identity
88%Generating word-of-
mouth about a company
89%Delivering content &
information about company
82%Advertising to
generate new leads
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Social media is one of the most influential touch points when SMBs choose a financial service provider
Over two-thirds of SMBs on social media use it for financial services
TOP REASONS*
Keep up-to-date on financial trends
Gather preliminary financial information
Seek advice on a financial decision
Evaluate or re-think a previous financial decision
Recommend a financial product to others
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Have Used Social Media for Finance-Related
Reasons
68%
Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
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Top 6 Actions As A Result of Hearing on Social Media
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Conducted additional research on a financial product
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Asked a financial professional for additional info
Shared information about financial trends, products
Discussed a financial product with a friend or colleague
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Learned of a new financial company
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Learned of a new financial product
Social media triggers SMBs to learn more about financial products and companies
Small Businesses are significantly more likely vs. Medium Businesses Medium Businesses are significantly more likely vs. Small Businesses
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©2013 LinkedIn Corporation. All Rights Reserved. 20
Among SMBs who use social media for both discovery and consideration, almost all are driven to action
Path to Purchase
DISCOVERYGather info / stay up-
to-date
CONSIDERATIONSeek advice/info to make a
purchase
DRIVEN TO ACTION(Learn / Discuss /
Purchase)
93%
©2013 LinkedIn Corporation. All Rights Reserved. 21
...and about two in five are driven to purchase
Path to Purchase
DISCOVERYGather info / stay up-
to-date
CONSIDERATIONSeek advice/info to make a
purchase
DRIVEN TO PURCHASE
37%
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29%
22%
21%
20%
16%
There is a significant opportunity for financial service providers to cater to SMBs’ unmet needs
*Base:: Current Social Media Users**Base: Those who expected info
Top 5 Types of Finance Content expected on social but not received*
Best practices, how-to guides, checklists
New innovation and technology developments
New product information
Company background
Industry news/strategy information
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In the path to purchase for financial services, SMBs consider LinkedIn to be one of the most trusted platforms
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LinkedIn is the destination SMBs are most receptive to learning about financial products
*Base: Current Users of Each Social Media Site
Openness to Receiving Financial Information On Social Media Sites*
57% 49% 47% 47% 45% 38%
of hyper growth companies are receptive to finance content on LinkedIn
69%
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Only LinkedIn provides the 4 C’s
CREDIBILITYNearly 3 in 4 agree LinkedIn allows them to build credibility.
CONNECTIONOver 2 in 3 agree LinkedIn lets them connect with vendors or potential partners.
CONTEXTOver 2 in 3 agree LinkedIn provides a relevant context to promote and advertise their company.
COMMUNITYNearly 2 in 3 agree LinkedIn provides access to a broader community of other companies to seek opinions.
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...providing a valuable resource across different activities in the SMB value chain
*Base: LinkedIn Users.
Open Innovation
Marketing& Sales
Sourcing
Customer Service
Build relationships through multiple touch points on LinkedIn
Build your followers
Encourage referrals and recommendations
Provide real-time assistance
Build communityPublish thought leadership
LIKE▪
SHARE▪
COMMENTFOLLOW
INMAILSPONSORED
UPDATES
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GROUPS
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Building community by leveraging LinkedIn data
SPOTLIGHTAD
API
©2013 LinkedIn Corporation. All Rights Reserved. 29
Targeting small business owners with Sponsored Updates
SPONSORED UPDATES
©2013 LinkedIn Corporation. All Rights Reserved. 30
Demonstrating expertise and commitment to customers with Groups
GROUPS
DISPLAY
©2013 LinkedIn Corporation. All Rights Reserved. 31
Best practices for marketers
Enable learning throughout each phase of the purchase path
Target hyper growth companies
Build your credibility by facilitating open dialogue with SMBs
Fulfill unmet content needs
Provide resources for the entire SMB value chain
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Questions?
Read the whitepaper for more info
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Visit our new Small Business Resource Center
smallbusiness.linkedin.com