How to Grow Your Business Using Social Media

A small business owner engaging with customers via social media. In today’s digital marketplace, social platforms are indispensable for business growth. Worldwide, over 63% of people use social media, and nearly half of consumers prefer to learn about small businesses through social channels. For small brands, social marketing is highly cost-effective: most social platforms are free to use, and posts can be boosted with paid ads when budgets allow. In fact, Hootsuite reports that 51% of global consumers discovered a new brand or product on social media in the last 6 months. Social media also drives real results: brands that invest in social see stronger brand awareness, customer engagement, and sales growth. In short, a well-crafted social strategy can give small businesses “unparalleled opportunity for exposure” at minimal cost.

Choosing the Right Platforms

Not every social network suits every business. The first step is to know your audience and goals. Identify your target customers’ demographics and interests – for example, younger audiences tend to use Instagram, TikTok or YouTube, whereas older or B2B audiences may prefer Facebook and LinkedIn. Align your choice with your business objectives: LinkedIn excels at B2B lead generation and thought leadership, while Instagram and TikTok are ideal for visual branding and younger consumers. Also, consider your content style: if you plan lots of visuals, platforms like Instagram and Pinterest make sense; if you offer professional services, a robust LinkedIn presence is key. Finally, be realistic about resources – a small team should start with one or two platforms rather than spreading thin. By matching platform strengths to your audience and content, you ensure your marketing effort reaches the right people.

Popular choices include Facebook (broad reach – 2.9 billion monthly users, 71% of US adults), which offers pages, groups and affordable ads for community building; Instagram (high engagement, 143 million US users) for visual storytelling with posts, Stories, Reels and live video; LinkedIn (1 billion users globally) for professional networking; and newer channels like TikTok and YouTube for short-form and long-form video content. Evaluate which platforms your customers already use, then focus on those channels. (For example, Hootsuite notes Facebook, Instagram and LinkedIn rank as the top networks for small businesses, though TikTok is increasingly influential for SMB growth.) In summary, choose platforms based on where your target audience spends time, the type of content you can produce, and your team’s capacity.

Creating and Scheduling Content

High-quality, consistent content is the engine of social growth. Develop a content strategy that includes a variety of formats: videos (Reels, TikToks, YouTube videos), images and carousels, Stories and ephemeral posts, live streams (e.g. Facebook/Instagram Live, webinars), and even audio/live events. Short-form videos are particularly effective at grabbing attention, and platforms like TikTok and Instagram Reels can make even a small business go viral (e.g. user-generated “OddlySatisfying” or behind-the-scenes clips). Longer content (such as YouTube tutorials or Facebook Live Q&As) also has a comeback in 2024 by building deeper connections. In all cases, authenticity wins – customers respond to real storytelling, such as sharing the “behind-the-scenes” challenges of running a small business.

Plan and schedule your posts in advance using a content calendar. Tools like Hootsuite’s scheduler (or even simple spreadsheet planners) let you batch-create posts, pick optimal post times, and ensure consistency. For example, Hootsuite reports that scheduling posts for noon on Fridays tends to yield high engagement across platforms (though optimal times vary by channel and region). Use scheduling tools or AI assistants to generate captions and hashtags, then set up posts weeks ahead of time. This ensures a steady presence even on busy days.

• Video and Live Content: Invest in video (even with a smartphone). Short videos, tutorials, or product demos can quickly engage viewers. Try live-streaming special events or Q&As to interact in real-time. (For instance, many brands host Instagram Live or TikTok Lives to showcase launches or answer customer questions.)

• Stories and Ephemeral Posts: Use Instagram/Facebook Stories or Snapchat for candid, time-sensitive updates (promotions, day-in-the-life, flash sales). These formats feel personal and encourage daily engagement.

• User-Generated Content (UGC): Encourage customers to post photos or videos using your product, and re-share the best examples. UGC (reviews, testimonials, unboxings) builds trust because it’s authentic. Run hashtag campaigns (e.g. #MyBrandStory) or contests to motivate followers to contribute content.

• Educational/Value Content: Share how-tos, tips, or industry news. Position your brand as helpful rather than just promotional. For example, a beauty brand might post makeup tutorials or a bakery could share recipes.

• Branded Entertainment: Don’t be afraid to be funny or creative (memes, lighthearted posts). Hootsuite notes that 43% of brands experimented with new tones in 2024. A humorous or unique brand voice can set you apart.

Increasing Engagement and Building Community

Simply posting is not enough – you must engage. Social media is a two-way street, so interact with your followers and make them feel heard. Respond promptly to comments and messages; thank people for positive feedback; and handle questions or complaints with care. Engaging directly with customers builds loyalty and encourages others to chime in.

Use interactive content to boost participation: polls, quizzes, Q&As, or live ask-me-anything sessions invite followers to get involved. For example, run a poll in Instagram Stories (“Which new product should we launch?”) or host a Facebook Live Q&A about your services. Contests and giveaways (e.g. “Tag a friend to enter”) can dramatically increase likes and shares. Laurel Ridge SBDC suggests adding “interactive elements like polls, quizzes, or challenges” to encourage participation and strengthen customer relationships.

Highlighting your audience is powerful. Feature user content on your page (with permission) to show real customers using your products. This not only provides social proof and builds trust (“people trust real customer reviews more than ads”) but also makes contributors feel valued. Community-building posts (shout-outs, follower spotlights, or customer stories) foster a sense of belonging. Hootsuite’s Small Business guide notes that sharing struggles and successes transparently can earn “a ton of support” from other entrepreneurs – authenticity attracts an engaged audience.

In summary, focus on conversation and value rather than just broadcasting. Reply to every comment, ask questions in your captions, and create content that invites dialogue. Over time, this engagement forms a loyal online community that will boost your growth.

Paid Social Advertising

Organic reach is great but paid social ads can amplify growth. All major platforms (Facebook/Instagram, LinkedIn, TikTok, etc.) offer advertising options that let you target specific audiences by demographics, interests, behaviours and even geographic location. For small businesses, paid ads allow you to reach people outside your follower base very efficiently. In fact, Hootsuite reports that 85% of marketers use Facebook Ads due to their micro-targeting power.

Best practices for paid social:

• Audience Targeting: Define your ideal customer persona and use platform targeting. On Facebook/Instagram, you can target by age, location, interests, or even behaviours. LinkedIn allows targeting by job title or industry. Don’t try to advertise to everyone; focus narrowly on the people most likely to buy. For local businesses, consider geotargeting (ads that only show to people near your store).

• A/B Testing: Never run a single version of an ad and hope for the best. Test multiple images, headlines, or audiences on a small budget to see what resonates. Hootsuite’s paid social manager advises “test, test, and test” to refine creative and targeting. Scale up spending on the winning variants.

• Budget and Bidding: Start with a modest budget and increase it as you see results. Platforms often let you choose objectives (e.g. bid per click or per impression). Adjust bids or budgets in real-time based on performance. Because social ads provide instant feedback, you can reallocate your budget to high-converting ads quickly.

• Creative Tips: Align ad creative with platform. Use vertical video for Stories/Reels, and bold images for feeds. Include a clear CTA (“Shop Now”, “Sign Up”). Remember many people scroll fast – catch attention in the first 3 seconds.

• Retargeting: Use the Facebook Pixel or similar tools to retarget website visitors. (This means showing ads to people who have already visited your site or engaged with you online, which usually yields higher ROI.)

Measuring ROI and Tracking Performance

Growing on social is not guesswork – you must track performance. Define your goals (brand awareness, engagement, leads, sales, etc.) and then monitor relevant metrics. Here are common categories and metrics to track:

• Awareness/Reach: Monitor follower count growth, impressions (how many times posts are seen), and reach (number of unique users who see your content). Also track brand mentions across social – how often people talk about your brand, tagged or not. These metrics show how your visibility is increasing.

• Engagement: Track likes, comments, shares, saves, video views/completion rates, and engagement rate (engagements divided by impressions). High engagement means your content resonates. For example, shares indicate people want to spread your message. Keep an eye on trending posts to see what content sparks conversation. Also, monitor audience sentiment via comments and reactions to gauge brand perception.

• Traffic/Leads (Conversion): Use tools like Google Analytics to measure how social activity drives website visits. Set up UTM tracking codes on links you share in posts and ads, so you can see exactly which platform or post sends the most referral traffic. Track click-through rates (CTR) from social to your site and conversion rate on your site (the percentage of visitors who take a desired action). This shows if social media is translating to leads or sales.

• Sales/ROI: Ultimately, tie social efforts to revenue. This means tracking conversions (e.g. online sales, signups) that originate from social. Use UTM-coded links or e‑commerce tracking to attribute sales to specific campaigns. Calculate simple ROI by comparing revenue generated from social (or ad spend) to the cost. Many companies look at return on ad spend (ROAS) for paid campaigns. Tools like Google Analytics or CRM integrations can connect social traffic to transactions.

Sprout Social recommends a balanced approach: don’t just obsess over “likes.” Pull metrics that align with your objectives. For example, if your goal is community building, prioritize engagement rates and sentiment. If the goal is e-commerce sales, focus on conversion metrics and cost per acquisition. According to Sprout’s Social Index, 65% of marketing leaders say they need to “prove how social supports business goals”. Regularly report these metrics to stakeholders. Use visual dashboards (e.g. Google Analytics, Sprout, or even Tableau) to combine data across platforms. In summary, “track key metric categories” – awareness (reach), engagement, customer satisfaction (response time, sentiment), and conversion/ROI (leads, sales) – and refine your strategy based on the data.

Success Stories and Case Studies

Numerous small businesses have scaled rapidly by leveraging social media. For example, Enchanted Scrunch (a handmade hair scrunchie shop) saw astonishing growth on TikTok: one viral video garnered 15,000 views and 10 orders in a day, and over time TikTok drove 90% of their sales. Before TikTok, they averaged 2 orders/week; after, they hit ~100 orders/week, now nearly 500 orders on TikTok Lives. In just a year the brand became six figures, with 170,000 followers.

Similarly, Lala Hijabs (a tie-dye hijab company) launched by posting product videos on TikTok. One viral video earned the founders over 50,000 followers and 1 million views overnight, all before they had even officially launched their store. The organic buzz led them to use all their savings to start the business – with most web traffic coming directly from TikTok. Today they credit TikTok as their primary marketing channel.