Social media is overtaking traditional channels for UK SMEs' revenue generation

The emergence of social media has changed the game for small businesses, shifting perceptions from its original use as a tool for connecting with friends and sharing personal moments.

Social media has opened up latent potential, enabling small businesses to challenge the dominance of conventional brick-and-mortar retailers thanks to its unmatched reach, real-time interactions and targeted marketing capabilities.

A study by BT, a provider of fixed and mobile telecommunications and related digital products, has pointed out that a quarter (28%) of British small businesses are currently making more money through social media than from any other channel, including e-commerce and traditional stores.

However, despite the increasing adoption of social media as a sales tool, a reported 21 per cent of business owners worry because they believe they do not possess the digital skills necessary for them to fully capitalise on the potential of social platforms for their businesses.

Acknowledging that UK small businesses need support in maximising the advantages of social media, BT has partnered with an online entrepreneur and influencer, Patricia Bright, to provide professional advice on how to utilise digital marketing skills and customise tactics to use social media effectively.

More than 500 small businesses in the UK were examined as part of BT's study into social media strategy, and it was discovered that Meta-owned platforms are crucial for revenue-seeking entrepreneurs. Facebook was cited as the top social media platform for generating sales by nearly a third (30%) of those polled, then Instagram followed with 18 per cent, Twitter (10%) and TikTok (9%).

The study further revealed that with a quarter (25%) utilising organic/non-paid social media to raise income and 22 per cent using sponsored social media postings, social media is becoming more and more popular as a means of generating sales. The report indicated that both of these methods are employed more frequently compared to other digital tools like SEO (15%) and direct email marketing (18%), as well as older strategies like partnerships (11%) and leafleting (11%).

Despite the evident success, some business owners expressed feeling overwhelmed and anxious due to the constant changes in advertising regulations, algorithm updates and evolving consumer behaviour. As rules and algorithms differ across platforms like Facebook Marketplace, TikTok and Instagram shops, many entrepreneurs find it challenging to keep up and adapt their strategies accordingly.

A significant majority of small business owners (58%) believe they could use some help with their digital abilities, and even more (60%) wish they had received it in school.

When asked about the skills they needed the most help with, nearly a quarter of respondents highlighted the importance of finding the right online audience. A recorded 21 per cent expressed the need for guidance on building an online presence and effectively using social media, while 19 per cent sought more support in understanding cybersecurity to avoid potential disasters, according to the report.

Entrepreneur and Influencer, Patricia Bright, stated that digital marketing expertise is now something that is compulsory for small business owners so as to increase their brand awareness and establish closer connections with potential clients.

Bright encouraged entrepreneurs to embrace social media campaigns, as they provide a direct line of communication with potential customers and offer a platform to showcase services and products, ultimately helping build a strong brand identity and reputation.

Chris Sims, Managing Director of BT's Small and Medium Enterprise division, reinforced the importance of social media platforms for businesses to succeed. He mentioned that over three-quarters (76%) of today's prosperous companies rely on internet presence or social media platforms for the majority of their revenues.

Sims stressed that utilising social media platforms may give small businesses a competitive edge by enabling them to connect with and engage with new audiences, which will ultimately result in increased sales at a time when business owners are dealing with growing prices.

The owner of Maison Style, a Hair Shop in Southwest London, Maria, shared her experience with digital marketing.

She said: "When I first considered using digital marketing to advertise Maison Style, I didn't know where to start. There's just so much to cover and learn, which can be a bit overwhelming – our Instagram channel is one way in which we promote our salon, but it's difficult to find the time to focus on finding new customers when you're running a salon. Patricia has inspired me to get better at using social media to grow my business and use the powers of social media to find new customers."