Social media can be a useful tool for businesses, bringing advantages such as engaging with your audience and boosting website traffic. However there can also be disadvantages, including the resources required and negative feedback. Considering these pros and cons can help you decide the best approach to social media for your business.
Advantages of social media
The business benefits of effective social media use include:
- Brand awareness - Compelling and relevant content will grab the attention of potential customers and increase brand visibility. See branding: the basics.
- Brand reputation - You can respond instantly to industry developments and be seen as 'thought leader' or expert in your field. This can improve how your business is seen by your audience. See public relations [PR].
- Cost effective - It can be much cheaper than traditional advertising and promotional activities. The costs of maintaining a social media presence are minimal. If you choose to invest in paid advertising, you can spend as much or as little as your budget allows.
- Website traffic - Social content can boost traffic to your website. This can lead to increased online conversions such as sales and leads.
- Evaluation - It is easy to measure how much website traffic you receive from social media. You can set up tracking to determine how many sales are generated by paid social advertising.
- Customer interaction - You can deliver improved customer service and respond effectively to feedback. Positive feedback is public and can be persuasive to other potential customers. Negative feedback highlights areas where you can improve.
- Target audience - Customers can find you through the social media platforms they use most. You can choose to maintain a presence on particular platforms that are in line with your target audience. For example, if you are targeting young people you could reach them through Snapchat. If you are seeking business customers, LinkedIn may be the best channel. See social media platforms.
- Brand loyalty - You can build relationships with your customers through social media. This can help increase loyalty and advocacy.
Disadvantages of social media
Some of the downsides of using social media include:
- Resources - You will need to commit resourcesto managing your social media presence, responding to feedback and producing new content. This can include hiring and trainingstaff, investing in paid advertisingand paying for the costs of creating video or imagecontent.
- Evaluation - While it is easy to quantify the return-on-investment in terms of online sales generated by social media advertising - there are some less tangible benefits. It can be hard to measure and place a monetary value on the brand awareness and reputation that social media can bring. It's difficult to know how social media effects sales in-store.
- Ineffective use - Social media can be used ineffectively. For example, using social media to push for sales without engaging with customers, or failing to respond to negative feedback - may damage your reputation.
“Owning a franchise allows you to go into business for yourself, but not by yourself.” A franchise provides franchisees [an individual owner/operator] with a certain level of independence where they can operate their business. A franchise provides an established product or service which may already enjoy widespread brand-name recognition. This
gives the franchisee the benefits of a pre-sold customer base which would ordinarily takes years to establish. A franchise increases your chances of business success because you are associating with proven products and methods. Franchises may offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.Advantages:
Franchises offer important pre-opening support: site selection, design, construction, financing, training, and a grand-opening program
Franchises offer ongoing support: training, national and regional advertising, operating procedures, operational assistance, ongoing supervision and management support, increased spending power, and access to bulk purchasing.
Disadvantages:
The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement. These restrictions usually include the products or services which can be offered, pricing and geographic territory. For some people, this is the most serious disadvantage to becoming a franchisee. In addition to the initial franchise fee, franchisees must pay ongoing royalties and advertising fees. Franchisees must be careful to balance restrictions and support provided by the franchisor with their own ability to manage their business. A damaged, system-wide image can result if other franchisees are performing poorly or the franchisor runs into an unforeseen problem. The term [duration] of a franchise agreement is usually limited and the franchisee may have little or no say about the terms of a termination.