UK consumers spending more with small businesses because of social media, American Express Shop Small research reveals.
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%)聽of UK adults聽who聽follow more small businesses on social media now than they did 12 months ago聽are spending more with them.聽In total,聽UK consumers聽have聽spent 拢3.7 billion with聽small聽businesses they follow on social media in聽the聽last year.
While聽following small businesses on Instagram is more prevalent among females聽and those聽under 35,聽those aged 55 and over聽are the most likely to have spent with them聽(68%), compared to 59% of聽those aged 35 and under.
The research also reveals nearly half聽of聽followers聽(47%) are more聽willing聽to spend聽more聽money with a business they follow on social media.
Restaurants have benefited the most from the power of social media, with聽their聽followers on average spending 拢50.80 with them聽in the last聽year, followed by clothing businesses whose followers have spent an average of 拢32.60.
Beyond the Bucks
UK consumers鈥櫬爏upport for small businesses聽goes beyond financial benefits. Over half (55%) of those who follow small businesses say聽following聽makes them more willing to tell their聽friends and family about the business, while聽52%聽care聽more about the success of the business聽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% |
Dan Edelman聽General Manager UK, Global Merchant and Network Services聽at American Express, said:聽鈥淪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 – makes a huge difference, especially after such a challenging聽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�
