Social Networking as a Business Tool

The way people conduct business networking on a day-to-day basis has certainly changed over the last few years. Although many individuals, companies and organizations still use traditional methods of networking, such as attending conferences, many have discovered social networking websites such as Twitter and LinkedIn. These sites and others can help you listen to your customers and network with other professionals.

In the wired world of the 21st century, communicating with your customer base and expanding that base through social networking is a vital part of an online marketing strategy. It can save you time and money and ultimately generate more revenue for you and your company.

You've probably heard about social networking sites, but, if you haven't joined the social networking revolution yet it's hard to discern what the fuss is all about. Sites like Twitter enable people to send tweets, a text message no longer than 140 characters that's broadcast to an online community or can be read on a web page. For instance, if you subscribe to Warren Buffet's tweets, you can read instant updates of what he's doing and thinking in his daily life. While it might be interesting to follow the musings of a business superstar, knowing what one of your clients is doing can enhance your bottom line.

The beauty of social networking sites is that you can join for free, connect with potential customers, and find out what they are really thinking. Based on this information, some companies have tweaked their products to address customer concerns.

A recent example is Kodak, which employs a full-time staffer to monitor customers' tweets. Based on this feedback the company made changes to its new camera models, ultimately improving sales. Besides intelligence gathering, the potential for selling products and services on social networking sites is huge. Many businesses have pounced on this opportunity.

If you're looking to augment the growth of your business using social networking, your first step is to register with sites like Twitter, LinkedIn and Facebook. The sign-up process is free and easy, and in a matter of minutes you can be communicating with your existing customers and potential customers.

In the Details section, list as many points of contact as possible, including contact names, website URL, mailing address, e-mail, telephone and fax numbers, etc. Doing this demonstrates your desire to foster communication, offering a variety of convenient ways for people to contact you.

Once your profile has been set up, your next step is to methodically build a base of fans and followers. Steer clear of adding names using an automated system, as these "customers" have low value. What you want is a targeted readership of your tweets and updates, people who are genuinely interested in your company. Build the list of followers and fans organically over time.

For instance, if you run a hair salon, you could offer discounted services for people who print a coupon from your Facebook page. (Just make sure they first become a fan of your business.) Doing this will create a viral effect as people talk to each other. Your followings will grow naturally with minimal effort. For the most part, though, Social Networking sites can and are very productive for online business growth, as long as you're using them in the correct balance with other marketing and networking strategies.

People can update their tweets with links to their websites with the aim of getting sales conversions higher. And if you have thousands of followers, fans, or group members, then if even only a small percentage click on those links and you get a few sales and generate some extra online revenue it's still worth doing.

One downside to using these sites regularly is that it's easy to get addicted. People may find themselves constantly logging in and tweeting or updating their Facebook status and letting people in your circle know what you're currently doing. Some people can get so caught up in it, that they actually forget what real work is. There are even sites dedicated to "Twitterholics". Perhaps some people have to be weaned of social networking sites slowly and return to more conventional marketing strategies, such as email marketing, or strike up a healthier balance.

For the most part, though, social networking sites are very productive for online business growth, as long as you're using them in the correct balance with other marketing and networking strategies.

Finally, in order to build your list you should join other networks related to your business. This may involve monitoring what your competition is doing so you can improve upon it. Then reach out to their customers with a better product or service.

Last update: Feb 25, 2010