UK consumers spending more with small businesses because of social media, American Express Shop Small research reveals.
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Social Media Boost Small Businesses
Social media has been key for businesses and customers to stay connected and engaged during the pandemic, and new research from American Express Shop Small (NYSE:AXP) shows that social media has driven UK consumers to spend more with small businesses in the last 12 months.
Nearly three-quarters (72%)听of UK adults听who听follow more small businesses on social media now than they did 12 months ago听are spending more with them.听In total,听UK consumers听have听spent 拢3.7 billion with听small听businesses they follow on social media in听the听last year.
While听following small businesses on Instagram is more prevalent among females听and those听under 35,听those aged 55 and over听are the most likely to have spent with them听(68%), compared to 59% of听those aged 35 and under.
The research also reveals nearly half听of听followers听(47%) are more听willing听to spend听more听money with a business they follow on social media.
Restaurants have benefited the most from the power of social media, with听their听followers on average spending 拢50.80 with them听in the last听year, followed by clothing businesses whose followers have spent an average of 拢32.60.
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Beyond the Bucks
UK consumers鈥櫶齭upport for small businesses听goes beyond financial benefits. Over half (55%) of those who follow small businesses say听following听makes them more willing to tell their听friends and family about the business, while听52%听care听more about the success of the business听and are happy to buy the business鈥� products.
Over a third (35%) of small business followers say they are more willing to support small businesses since Covid-19.
| Following small businesses makes followers more likely to: | % of small business followers |
| Willing to tell friends and family about the business | 55% |
| Happy to buy the products | 52% |
| Care more about the success of the business | 52% |
| Emotionally engaged with the founders and those who work within the business | 49% |
| More likely to visit the business in person | 47% |
| Willing to spend more money with them | 47% |
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Dan Edelman听General Manager UK, Global Merchant and Network Services听at American Express, said:听鈥淪upporting a small business in any way 鈥� whether that鈥檚 by following them on social media, sharing their social content, or ultimately shopping with them 鈥� makes a huge difference, especially after such a challenging听20 months. American Express has a long history of supporting small businesses, and with our Shop Small Offer launching this weekend on Small Business Saturday, Cardmembers can get 拢5 back when they spend 拢15 or more at participating small shops across the UK.鈥�
Michelle Ovens, Director of Small Business Saturday, said: 鈥淒igital channels have been a lifeline for businesses during the pandemic and this research shows just how much that converts into income for the smallest businesses. Building relationships online can open up huge opportunities for retail and hospitality and we have seen just how much the public have embraced those relationships over the last year. With Small Business Saturday coming up, businesses have a great opportunity to engage with customers through social, to build even bigger reach via things like the friends and family referral (55%!) and make this festive season a commercial success once again.鈥�
