Assessing the impact of social media analytics on the growth and profitability of SMEs in the Free State Province

Abstract

This study aimed to explore the perceived impact of social media analytics on the growth and profitability of SMEs that run driving school companies in Free State Province, South Africa. Unlike large organisations, most SMEs in South Africa find it difficult to leverage social media analytics, primarily due to a lack of financial resources and expertise. To examine this issue, the study adopted a qualitative research approach, grounded in the principles and assumptions of the interpretivism research paradigm, which insists on subjectivism. Regarding research design, the study was premised on the phenomenology research design, which values digging deep into the participants' experiences and opinions pertaining to an issue under investigation. The target population of the study were owners and managers of driving schools in Free State province. From this target population, a sample of 15 participants was selected. In-depth interviews were used to collect data from the participants. The data was analysed using thematic analysis to establish themes that permeated across all interview transcripts. The study found that social media analytics significantly have a significant impact on the growth and profitability of SMEs in the Free State Province. Firstly, these analytics facilitate market expansion through effective social media marketing. Secondly, they enhance profitability by increasing sales, revenue, and overall profits while reducing costs. However, SMEs face challenges in utilising these analytics, such as resource shortages, a lack of awareness about available tools, the complexities of their use, and inadequate technological infrastructure. Additionally, platforms such as Facebook, WhatsApp, and Instagram play crucial roles in improving customer engagement, fostering stronger relationships and loyalty. Lastly, tools like Google Analytics and Facebook Insights were found to effectively enhance customer engagement and contribute to the profitability and sustainability of SMEs. Therefore, it is recommended that SMEs in the Free State Province invest in training and resources to enhance their understanding and utilisation of social media analytics, while also leveraging social media platforms to improve customer engagement and drive growth.