Feature Article

October 31, 2016

How Instagram is an Important Social Media Platform for Businesses

By Special Guest
Renata Facchini, founder and CEO, Liquido Active

Social media was once thought of as a series of apps designed for youth to browse through photos, videos, and fun facts. Increasingly though, Instagram has become vital to the success of businesses. Some beauty, fitness, and lifestyle businesses actually only operate via Instagram, gaining visibility and tracking new customers exclusively through this platform. This popular social media outlet has become a marketing giant, giving niche businesses insightful data about their audience ever since Facebook acquired the company in 2012 for $1 billion. Distinguished by its unique filters, artistic niches, and high-end demographic, Instagram sets itself very much apart from its fellow platforms.

Let’s look at some key points as to how Instagram can benefit your business.

Gain valuable customer insights
Social media, and specifically Instagram, generates a shocking amount of data about a company’s customers and clients in real time. By analyzing metrics like engagement, hashtags, and e-commerce conversions, businesses can evaluate information that will allow them to make smarter business decisions. A recent Shopify report found that the average price tag for a sale referred from Instagram is $65, compared to $59 for Pinterest, $55 for Facebook, and $38 for Youtube. Businesses are able to hone in on target markets and gain an awareness of the average cost per conversion of each visitor that chooses to shop the products on the site.

Increase brand awareness
Your social media presence is vital to your online success as it makes it simple for your customers to find you and learn about you. A recent study conducted suggested that 53 percent of Americans who follow brands on social media are more loyal to those brands. What sets Instagram apart from other social media platforms is the ability to target audiences by keyword while hyperlinking keywords to products.

Target ads in real time
Scheduling and placing ads at certain times is an inexpensive method to promote your business and circulate content that you know will be viewed. Instagram is successful for businesses because it allows for powerful targeting options in order meet exactly who you want when you want. If you’re noticing more traffic during a certain time of the day, you can schedule posts and to go out when there will be the greatest number of eyes watching.

Generate higher conversions
Instagram helps your business succeed by increasing sales and retention through the interactions that you have with your customers. Studies suggest that almost 75 percent of businesses who posted on Instagram about their items and asked for responses organically from their followers reported increased sales over a 12 month period. Through the strong backing of parent company Facebook, Instagram allows businesses a wealth of metrics on the gender, age, and interests of the people that interact with its content.

Boosts website traffic and search hits
When people see that unique pair of yoga pants on Instagram or come across that must-have pair of shoes they’ve been looking out for, chances are they are going to go right to that Instagram profile to locate the web page. Instagram, therefore, directs people to your website by virtue of great photos (that you should be optimizing with all the proper hashtags).

Building a two-way relationship with your clients will undoubtedly be beneficial for your relationships as well as your customers. Speaking to your customers through Instagram allows for two-way conversation, something that print marketing and traditional advertising simply cannot do.

About the Author: Renata Facchini is the founder and CEO of Liquido Active. She started the business four years ago after identifying a gap on the activewear market for fun, colorful and performant clothes. Facchini is also a certified Yoga Instructor and healthy living advocate. 




Edited by Ken Briodagh


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