Citibank Survey Finds Small Businesses Driving Growth Through Online And Social Media Channels

NEW YORK, March 22, 2012 /PRNewswire/ -- Small businesses are increasing their use of the Internet and social media platforms to connect with customers and grow their businesses, according to a recent Citibank survey.

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Sixty-five percent of the 749 small business owners surveyed across the United States cited increasing marketing activities as a key step in growing their business. While the overwhelming majority (70 percent) used their company website as a marketing channel, 41 percent said they have used social media channels, such as LinkedIn, Facebook and Twitter, in the last year. Sixty-two percent haven't used email for marketing purposes – a figure that remains the same from when Citibank first surveyed small business leaders about social media and online marketing in April, 2010. 

As small business owners are moving online, and relying more heavily on their company website, online channels represent an emerging opportunity to help grow their businesses. In fact, many small businesses plan to use digital and social media tools in the coming year. According to the survey:

• 60 percent plan to increase activity on their website for marketing purposes.
• 40 percent intend to use social networking sites such as Facebook, LinkedIn or Twitter for marketing or expanding their business – up 10 points from 2010.
• 38 percent plan to leverage email marketing tactics to drive awareness and sales of products and services.

"Although small business owners have been slower to adopt online marketing channels, they are clearly warming up to using these tools to target customers," said Maria Veltre, Managing Director, Small Business Marketing & Customer Experience at Citi.  "They are seeing that social media platforms can be an efficient and cost effective means to increase awareness of their business, engage with customers and, ultimately, to drive growth."

The number of small businesses selling goods and services online or via email rose from 16 percent to 24 percent since 2010.   The use of social media tools, such as Facebook, Twitter and LinkedIn, is up six percentage points during that same time frame.  The survey also revealed that nearly three-quarters of small business owners who have a website find it very or somewhat effective in generating more business for their company. 

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