Why Social Media is Essential for Small Businesses to Improve Customer Relations


Person using phone to take picture of coffee with foam art on top

If you think social media is just a passing trend, think again! Social media has firmly woven itself into the daily lives of billions worldwide. For small business owners, it’s not just a platform to show off your latest product or make Instagram posts that look pretty—it’s a game-changing tool to strengthen relationships with your customers.

Think about it for a moment. Customers aren’t just buying products anymore; they’re buying experiences and connections. If you’re not in their social media feed, you’re likely missing out on building these connections. But don’t worry—by the time you finish this post, you’ll understand why social media is so important for improving customer relations and how you can leverage it, even with a modest budget.

What Makes Social Media Perfect for Customer Engagement?

Unlike traditional advertising platforms like TV or billboards, social media fosters two-way communication. Smaller businesses can thrive here because it’s not about how much you spend but how well you engage with your audience. Here are a few reasons why social media is unbeatable for building customer relations:

1. Real-Time Interaction

Social media allows you to connect with your customers instantly. Whether someone leaves a comment, sends a direct message, or tags your business in a post, you have the opportunity to respond in real-time. This makes interactions feel personal and helps build trust.

For instance, a customer sharing a photo of your artisanal coffee shop on Instagram with the caption, “Best latte I’ve had in weeks!” deserves more than just a like. A simple “Thanks for stopping by! Your next latte is on us 🍵” can leave a lasting impression.

2. It Humanizes Your Brand

People don’t connect with faceless corporations—they connect with other people. Social platforms give small businesses the perfect avenue to show off their personality. Share behind-the-scenes glimpses of your team hard at work, post about your business’s values, or even show the bloopers while creating your product.

The more human you seem, the more approachable and relatable your business becomes. And when people feel a personal connection, they’re far more likely to stay loyal.

3. Builds a Sense of Community

Social media gives you more than just individual customer interactions; it allows you to create a thriving community. Platforms like Facebook, Instagram, and even LinkedIn (if that’s your audience) make it easy to gather people around a shared interest—your business. 

You can:

  • Start a private Facebook group just for your loyal customers.
  • Host Instagram Lives where followers can ask questions or just hang out.
  • Share customer reviews and success stories to spotlight your audience.

Communities create stronger bonds with your customers and make your business something they genuinely care about.

How to Use Social Media to Strengthen Customer Relations

Mastering social media doesn’t mean just making Instagram posts or tweeting “Happy Monday!” and calling it a day. Here are actionable ways to make the most of social media for your customer relationships:

1. Be Responsive

Engagement is a two-way street. Make it a habit to reply to comments, answer questions, and acknowledge reviews—even the negative ones. According to a study, 71% of consumers who have a good social media experience with a brand are likely to recommend it to others. Your responsiveness can directly impact the growth of your business.

2. Focus on Quality Content

Content is king, even on social media. Give your followers content they find valuable or entertaining, and watch them stick around long-term. Your posts could include tips, how-to guides, and inspirational quotes that align with your business’s mission. For example, if you own a health food store, share recipes or tips for staying healthy during busy workweeks.

3. Create Visual Appeal

Want to stop people dead in their scroll? Use high-quality visuals that catch the eye. Make Instagram posts with aesthetically pleasing product photos or engaging reels that show your business in action. Nothing boosts engagement quite like visuals.

4. Encourage User-Generated Content

User-Generated Content (UGC) is a goldmine for small businesses. Encourage your customers to share their experiences and tag your business. Not only does it build trust with potential customers, but it feels like free advertising. Don’t forget to reshare their posts (with permission) and show your appreciation!

5. Host Contests and Giveaways

Interactive campaigns like contests or giveaways keep your audience engaged and excited about your business. Something as simple as asking followers to share their favorite product for a chance to win a gift card could do wonders for engagement.

6. Invest in Social Ads (Strategically)

While organic reach is great, adding a small budget for social media ads can amplify your efforts. Platforms like Facebook and Instagram allow you to target specific demographics, ensuring your content reaches the right audience.

Businesses Already Winning Big with Social Media

Small businesses across the globe are proving the power of social media. For example:

  • Local bakeries are sharing videos of their bread being baked fresh every morning, letting customers feel like part of the process.
  • Indie fashion brands are using Instagram Stories to poll customers on product ideas or color options, involving them directly.
  • Yoga instructors are hosting live sessions on Facebook or Instagram, helping their customers stay engaged even when they’re not in the studio.

The common theme? Connection. Social media allows these businesses to meet customers where they already are—on their feeds.

What Happens If You Don’t Use Social Media?

Not being on social media is like not being listed on Google—it makes your business hard to find. People expect to connect with brands online, and when they don’t see you there, it sends a message that you’re outdated or not approachable. It’s a missed opportunity for engagement, visibility, and, ultimately, sales.

Final Thoughts on Social Media for Small Businesses

Social media isn’t just about likes and shares—it’s about real connection, trust-building, and community. Whether you’re re-sharing customer reviews, making Instagram posts that showcase your products, or hosting live Q&A sessions, social platforms give you the tools to show your customers you care.

Start small. Pick one platform where your audience spends the most time and focus on engaging meaningfully with them. The goal? Build relationships that last, turn followers into loyal customers, and customers into your biggest advocates.

Don’t wait—your competitors aren’t.

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