TikTok, once considered a platform primarily for Gen Z dance trends, has evolved into a powerful marketing tool for businesses of all sizes. For small and medium-sized enterprises (SMEs), TikTok offers a unique opportunity to reach new customers by leveraging its algorithm and viral nature. With over 1 billion active users globally, SMEs can engage audiences, create brand awareness, and drive sales in creative, bite-sized videos. In this blog, we’ll explore how SMEs can effectively use TikTok to reach new customers, supported by a real-life case study from SME Scale, and discuss the psychology behind why TikTok marketing works.

Why TikTok Works for SMEs
TikTok’s success lies in its highly engaging content format and algorithm, which promotes videos based on user behavior rather than follower count. This makes it an ideal platform for SMEs, as businesses can go viral and reach large audiences without having a massive following.

Here are some reasons TikTok can be an effective marketing tool for SMEs:

Broad Audience Reach: TikTok’s user base spans multiple demographics, allowing SMEs to target a variety of potential customers.
Creative Content: The platform thrives on creativity, giving SMEs the opportunity to showcase their brand in innovative and entertaining ways.
Organic Reach: Unlike other social platforms, TikTok’s algorithm can push content to millions of users based on engagement metrics, making it easier for SMEs to achieve viral growth.
Cost-Effective Advertising: SMEs can create organic content or use TikTok’s ad platform, which offers options like In-Feed Ads and Branded Hashtag Challenges, all of which can be tailored to fit smaller marketing budgets.
Key Strategies for SMEs to Leverage TikTok
1. Create Engaging, Authentic Content
The most successful TikTok content is engaging, relatable, and authentic. SMEs should focus on creating videos that reflect their brand’s personality and appeal to the emotions of their target audience.

Example: A local bakery could post behind-the-scenes videos of the baking process, showing the craftsmanship and care that goes into each product. This helps customers connect emotionally with the brand, turning casual viewers into loyal customers.
2. Leverage TikTok Trends
One of the most powerful aspects of TikTok is its constantly evolving trends. SMEs can capitalize on viral sounds, challenges, and hashtags to increase their visibility. By joining a popular trend, businesses can insert themselves into conversations and reach a wider audience.

Tip: Make sure the trend aligns with your brand values and messaging. Authenticity is key on TikTok—users can tell when content feels forced or irrelevant.
3. Utilize User-Generated Content (UGC)
Encouraging customers to create content about your product or service can increase your reach and build a community around your brand. UGC often feels more trustworthy and relatable, which can lead to increased brand loyalty.

Example: Run a hashtag challenge that encourages users to share how they use your product. This not only drives engagement but also gives you a library of content created by real customers, adding social proof.
4. Partner with Influencers
Collaborating with TikTok influencers can help SMEs reach new audiences. Micro-influencers, in particular, can provide a cost-effective way to access highly engaged followers who trust the influencer’s recommendations.

Case Study: How SME Scale Helped a Fashion Startup Go Viral on TikTok
A fashion startup specializing in sustainable, eco-friendly clothing approached SME Scale for help with increasing their brand awareness and driving online sales. The startup had a limited marketing budget but wanted to reach a broader audience without spending heavily on paid ads.

Challenges:

The startup was relatively unknown and lacked the resources for large-scale marketing campaigns.
They needed to find a way to connect with eco-conscious customers in a highly competitive market.
SME Scale’s TikTok Strategy:

Engaging Behind-the-Scenes Content: SME Scale helped the startup create behind-the-scenes videos showing the process of designing and producing their eco-friendly clothing. These videos highlighted the brand’s commitment to sustainability, resonating with their target audience.

Trend Participation: SME Scale recommended that the startup participate in TikTok’s “Upcycling” trend, where users repurpose old clothing into new fashion pieces. The startup posted tutorials on how customers could upcycle their own clothes, positioning the brand as a thought leader in sustainable fashion.

User-Generated Content Campaign: SME Scale launched a hashtag challenge encouraging customers to share videos of themselves wearing the startup’s clothing using the hashtag #EcoStyleChallenge. The campaign went viral, with thousands of users posting their videos, helping the startup’s message spread organically.

Results:

The hashtag #EcoStyleChallenge garnered over 500,000 views within the first month.
The startup’s TikTok following grew from 200 to 15,000 in just two months.
The viral campaign drove a 40% increase in website traffic, and online sales surged by 35% during the challenge.
The Psychology Behind TikTok’s Success for SMEs
Understanding the psychology of TikTok users can help SMEs create content that resonates and drives engagement. Here are key psychological principles that make TikTok such an effective platform for reaching new customers:

1. FOMO (Fear of Missing Out)
TikTok thrives on trends, and users want to participate in popular challenges or use viral sounds to avoid feeling left out. This psychological principle drives high engagement with trending content, encouraging more users to interact with businesses that are part of the conversation.

Example: The fashion startup’s participation in the “Upcycling” trend made users want to join in and showcase their own creativity, which helped the brand go viral.
2. The Power of Visual and Emotional Storytelling
TikTok’s short video format makes it easy for SMEs to tell compelling stories in just a few seconds. Research shows that storytelling, particularly when it evokes emotions, can significantly influence customer behavior.

Example: By showing the behind-the-scenes process of making eco-friendly clothes, the startup appealed to users’ emotions, particularly those who are passionate about sustainability. This emotional connection drove engagement and increased sales.
3. Social Proof
User-generated content and influencer collaborations act as social proof, showing potential customers that others are using and enjoying your product or service. When users see others engaging with your brand, they are more likely to trust it.

Example: The success of the #EcoStyleChallenge was fueled by social proof. Thousands of users posted videos wearing the startup’s clothing, convincing others to join in and purchase the products.
Conclusion
TikTok provides SMEs with an exciting opportunity to reach new customers through creative and engaging content. By leveraging trends, encouraging user-generated content, and using visual storytelling, businesses can build brand awareness and drive significant growth. The case study of how SME Scale helped a fashion startup go viral on TikTok demonstrates the platform’s potential for driving traffic and sales, even with a limited marketing budget.

If you’re ready to take your SME to the next level using TikTok, SME Scale can help you create a strategy that drives real results. Start engaging new customers on TikTok today!