5 Ways Social Media Increases Company Values
However, if you own a business, a well-executed, social media marketing strategy can help grow your business and ultimately increase your company's valuation, when managed and executed strategically and efficiently.
Successful businesses that evolve and use new avenues to consistently expand sales are more desirable to acquirers than businesses with outmoded sales models that prove to be less and less effective. The more confident an acquirer is in your company's future sales potential, the more likely they will be to pay a higher valuation.
LinkedIn can position your key management as thought leaders (through sharing industry insights; posting relevant, original content; initiating or commenting on LinkedIn group discussions, etc.), you can boost the reputation of both business's leadership and the business itself. Investors seek out successful companies that are well known in an industry niche, and will be more likely to offer a higher valuation than they would to a similar but lesser known company.
Acquirers will monitor the social sites of companies they are researching to see how customer service comments, inquiries and complaints are handled, as well as the frequency and type of inquiries, kudos and complaints received. If your business does not proactively engage with customers and address inquiries or complaints, an investor may question your ability to retain customers and repeat sales, which may compromise a favorable valuation.
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