Customer Acquisition through Social Media by SMEs in India

An emerging potent mainstream business tool that plays a major role in customer acquisition is social media. In order to maintain long term relationships, social media is being used by businesses these days. A survey conducted by Regus during February-March 2010 revealed that 52% of businesses in India use social media for acquiring customers.

The survey estimated that 32% of businesses in India use a part of their spending for social media activities. Use of social media for managing contacts is found to be used by 71% of respondents in India that is 13% higher when compared to other countries. Similarly, application of audio and visual animations on the company’s profile helps in acquiring customers. Its usage is found to be 64% in India which is 20% higher than that of the global average.

The average percentage of small businesses acquiring customers through social media is 55%. However, the global average is found to be 40%. The study also revealed that when compared to bigger businesses, SMEs are more likely found to use social networks.

Some firms get engaged in joining special interest groups by social media. It is also used for establishment of contacts and engaging with stakeholders. Use of social networks also enhances the conversation with customer groups.

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