Microbusinesses Seek Recognition through Social Media and Closer Customer Relationships
The creativity of micro, small, and medium-sized enterprises (MSMEs) is unique because many lack sufficient resources for traditional advertising. However, this does not deter them from promoting themselves on social media platforms like TikTok. According to The Competitive Intelligence Unit (CIU) report, at least 20% of MSMEs use TikTok as part of their marketing strategies.
Microbusinesses make up 47% of those using TikTok, while 44.3% are individual enterprises, as per the report titled “Contribución socioeconómica de TikTok en México.” Ernesto Piedras, CEO and general director of The CIU, adds that “TikTok enhances the reach for microenterprises, which are local. This is what we call ‘reach beyond geographical limitations,’ accounting for 71% of these businesses.”
Profile of MSMEs on TikTok
Establishing a digital presence is no longer an option but a necessity for MSMEs to expand in the market. Mexican MSMEs are well aware of this, as 69% of the companies surveyed have been operating for less than five years.
- 24% – Professional services
- 10% – Health, beauty, and fitness
- 9% – Food and beverages
- 9% – Handicrafts and handmade products
- 6% – Technology
- 5% – Clothing and footwear
The dissemination of MSMEs on this platform is crucial, as nine out of ten use it to publish content related to their products and services. Moreover, seven out of ten MSMEs integrate TikTok into their digital strategy and use it at least once a week.
How MSMEs Utilize the Platform
Initially, short-form video creation was prioritized. However, the platform offers more functions that MSMEs leverage. Two out of ten use paid advertising, while 15% have conducted live streams, enabling “live shopping” where they showcase exclusive products and discounts during the broadcast.
Furthermore, 14% of MSMEs collaborate with content creators for campaigns.
Interaction Between MSMEs and Customers
Digitalization enables better communication between users and businesses. Consequently, 48% of companies report contacting their customers through messages and comments, which strengthens the bond and trust with the brand.
This ease of communication has been a significant benefit, according to 19% of survey respondents. Additionally, users seek recommendations through the platform, providing MSMEs with increased visibility.
“Recommendations are very effective in influencing purchasing decisions,” explains Radamés Camargo, CIU’s analysis coordinator.
Notably, two out of ten companies believe their presence on TikTok has led to expansion.
Key Questions and Answers
- Q: Why are MSMEs using TikTok for marketing? A: Due to limited resources for traditional advertising, MSMEs leverage TikTok’s unique features and low-cost marketing opportunities.
- Q: What percentage of MSMEs on TikTok are microbusinesses? A: 47%
- Q: How do MSMEs utilize TikTok’s features for growth? A: MSMEs use paid advertising, live streams for “live shopping,” and collaborations with content creators.
- Q: How does TikTok help MSMEs build customer relationships? A: Through messaging and comments, MSMEs strengthen their connection with customers, fostering trust and loyalty.
- Q: What opportunities does TikTok offer for MSME visibility? A: Recommendations from users on TikTok provide MSMEs with increased exposure and potential customer engagement.
