One of the biggest misconceptions with online marketing is that social media is only for large brands. Truthfully, a small business that invests its time wisely can improve customer (or client) loyalty and traditional word of mouth marketing efforts.

Social media is useful for almost every type of business. Cafes, retail stores, and even professional services can build their online reputation and increase trust. By taking advantage of social media, businesses can make themselves more accessible, more personable, and maintain long term connections. For a small business looking to increase referrals, social media can be a powerful tool.

Here are five ways small businesses can capitalize on this new form of marketing.

Why use social media?

Social Media for Small Businesses

The best way to illustrate why small businesses are using social media is with a story. Think back to the days of the wild west. In those days, towns had one general store, and the store owner knew everyone. People trusted him and knew what they were getting. Enter the industrial age, and efficiency trumped personalization. People didn’t mind where they bought from, as long as goods were cheap.

Now, that mentality has changed. Consumers are once again reverting to a need for personalization from businesses large and small. The need has been rekindled by the Internet and our ability to find anything we want, as well as a mistrust of advertising (think used cars salesmen).

We’ve reached a point where the consumer wants to know the store owner’s name and that he can be trusted. Small businesses must look beyond their want to grow into corporations, and instead focus on their core customers. Thanks to social media, we’re able to foster these relationships easily and quickly.