Social media savvy paves way for successful shopping season

Associate Professor of Information Systems Kevin Hong shares how small businesses can use online platforms this holiday.

The weekend after Thanksgiving has long served as a benchmark for seasonal shopping. Small businesses, in particular, rely on these shopping events to meet their goals. According to Bloomberg, the stretch between Thanksgiving and Cyber Monday will account for about one-fifth of online shopping all year. Since American Express started tracking the impact of Small Business Saturday, $103 billion has been spent supporting small retailers, locally and online.

Social media can be a vital tool for small businesses to market their products over the holiday season. Associate Professor of Information Systems Kevin Hong agrees. He researches e-commerce, social media, and digital platforms. Hong shares some of his thoughts on how small businesses can capitalize on social media potential this holiday shopping season.

W. P. Carey news: What is the role social media should play in driving business for small retailers?

Hong: The main role of social media for small businesses is customer engagement (e.g., building a fan base) and sharing product and promotion information. There is certainly a large variation in the social media presence for different businesses. Many businesses have a Facebook business and Instagram page, but they also have to be managed well — regular posts, responding to comments, etc. That can be hard, depending on the small business’ strengths and history.

W. P. Carey news: How can small businesses compete with larger retailers online?

Hong: Small businesses are nimble, so they can try to add a personal touch to their engagement and interactions with their customers. While larger retailers typically rely on advertising dollars using targeted ads, small businesses may be able to use a community-based approach. Small businesses usually specialize in something so they can center the discussions around a community. Also, small businesses may be able to build their brand via the internet and social media, therefore competing with large businesses that already have high brand awareness.

W. P. Carey news: Are there any social media trends small businesses should jump on this holiday season? Any they should avoid?

Hong: I think, without a sizable social media footprint in the community of customers, it is probably not very useful to invest in social media ads. The key is to build their fan base and continuously engage with customers. The same can be said for social media review sites such as Yelp. It is important to engage with customers and ask them to send in stellar reviews around the year.

Some small businesses hold giveaway events. For example, some small businesses give away products in exchange for sharing their products and services on social media, which helps expand the social media fan base.

W. P. Carey news: How important is an online presence for success in small business?

Hong: I think it is extremely important for small businesses to have an online presence. One key advantage of the internet is those small businesses can build their brands through public reputation systems such as online reviews (Yelp) and social media pages (e.g., Facebook or Instagram pages). When they are able to build their reputation and create a community of customers, small businesses overcome their lack of brand awareness and reputation.

W. P. Carey news: Do you have any expert advice for small business owners looking to expand their online presence this holiday season?

Hong: Hire a dedicated person who constantly joins conversations with the customers on social media (e.g., using social media for both promotions and as a customer service tool). And I find creating viral content, like carefully designed giveaway events to increase the fan base, to be very useful for small businesses.