Women lead way in social media use for business

Peter Dinham
Thursday, 10 November 2011 16:46

IT Industry - Market

Australian small businesses are increasingly looking to the online marketplace to find new ways of promoting and selling their products and services, but when it comes to leading the way it’s the women not their male counterparts, in greater number, who are biting the bullet and embracing the opportunities offered by the social media networks and other online channels.

While men owning and running small businesses are by no means ignoring the online ‘revolution’,  a survey undertaken by Galaxy Research for American Express, and published today, reveals that female small business owners are more likely than their male counterparts to embrace these new channels.

According to American Express, the research reveals that 43 per cent of Australian female entrepreneurs are using at least one form of social media in their business, compared to 37 per cent of male small business owners. Women are also planning to increase their focus on social media over the next 12 months (48 per cent), in contrast to male business owners who are more likely to invest in staff and training than they are in social media in the next year.

The nationwide survey of more than 1,000 small business owners shows that female entrepreneurs are twice as likely to cite a Facebook page as the communication tool most likely to generate sales, and they are also more likely than their male counterparts to have a business Twitter account - 15 per cent compared to 10 per cent.

While both sexes are equally aware of the importance of maintaining a company website, the survey found that women are also more likely to have enabled their services or products to be purchased from the company website (48 per cent, compared to 40 per cent of men).

The findings coincide with the launch of American Express’ Facebook page for small businesses - www.facebook.com/AmexBusiness .  Jason Fryer, head of small business services at American Express says the platform will enable small business owners to interact and share their experiences of running a business. It will also provide information on the latest small business developments and allow users to ask questions and to connect with other small business owners.

Commenting on the survey, Fryer said that, interestingly, men are more likely to invest in new technologies than women, with respondents indicating that while 27 per cent of male small business owners intend to invest in technology in the next year, just 17 per cent of females plan on buying the latest gadgets. “The uptake of new technology is also more prolific among men - 54 per cent have a smartphone (compared to 42 per cent of women) and 16 per cent have a tablet device (compared to 13 per cent of females).”

“While male business owners focus on the importance of acquiring the tools with which to get connected, their female counterparts are more focused on putting these tools to work for them.”

Fryer says that with over 800 million active users and a range of tools designed to enhance interactive communication, sites like Facebook offer great potential for small businesses to attract and regularly communicate with customers.

“It is encouraging to see that 40 per cent of all small business owners are using at least one form of social media in their business - demonstrating this sector’s resourceful and eagerness to embrace new technology and methods of communication,” Fryer said.

The American Express survey across Australia covered 1,031 small business owners (businesses with less than 50 employees and less than $2m annual turnover).

Key findings include:

•    While there is almost universal (97%) awareness of Google this is mainly in relation to the Google Search Engine (94%) and Google Maps (89%). Awareness of Google Plus is significantly lower at 27%

•    Overall, 61% of small business owners use communication channels such as company websites and e-newsletters / e-zines as well as social media sites including Facebook, LinkedIn, Twitter and company blogs

•    The most popular communication channels are company websites (46%) and Facebook pages (30%)

•    In line with the low levels of awareness, just 4% of small businesses communicate through Google Plus

•    Of the communication channels being used, the company website is thought to contribute the most to generating sales for the business (34%)

•    Just under half of small businesses with a company website (44%) have their products or services available for purchase on the site. Among those that don’t currently communicate via a company website, 22% plan to have a site in the next year.

•    There is growing interest in social media among small business with 43% expecting to increase their focus on social media in the next 12 months. The majority expect no change in this area and just 1% are looking at decreasing their focus on social media.

•    The uptake of social media and technology is also reflected in small business owners’ investment plans over the next 12 months: 29% of small business owners plan to invest in website development, followed by technology (22%) and social media (15%).

•    Around half (48%) of small business owners have a smartphone they use for their business and 15% have a tablet device.

•    Among those that don’t currently have a smartphone 22% plan to buy one within the next year and the corresponding figure for a tablet device is 16%.

•    Around one in four small businesses (23%) advertise via search engine marketing. Among those that don’t, 10% plan to use it in the next year.

•    Location based services and check-in platforms are used by 13% of small businesses, and just 3% of those that don’t currently use them intend to in the next year.

And, on female uptake of social media:

•    A greater number of female small business owners (43%) are using at least one form of social media in their business compared to male small business owners (37%).

•    Facebook pages are used as a communication channel by more than a third (35%) of female small business owners compared to less than a quarter (24%) of male small business owners. Twitter is also used by more female small business owners (15%) than male small business owners (10%).

•    While 12% of female small business owners believe a Facebook page best helps generate sales for their business, only 6% of male small business owners feel the same way.

•    Nearly half (48%) of female small business owners expect to increase their focus on social media in the next 12 months compared to 37% of male small business owners. Just over half (51%) of female small business owners expect no change in this area and nearly two thirds (62%) of male small business owners expect no change.

•    Just under half of female-run small businesses with a company website (48%) have their products or services available for purchase on the site while this figure is 40% for male-run small businesses. Among those that don’t currently communicate via a company website, 26% of female small business owners and 18% of male small business owners plan to have a site in the next year.