SOCIAL NETWORKING SITES (LIKE THIS ONE!) ARE GOOD FOR PEOPLE...GOOD FOR BUSINESS.

Social Networking Sites Good for Business


Aug. 13, 2008

Stefanie Monge--Omaha World-Herald

Businesses and entrepreneurs have joined the masses of teens and young adults who connect through social networking Web sites such as Facebook and MySpace.

Companies use the sites to communicate with customers, promote themselves, recruit employees and conduct market research. Because the sites are usually free and reach millions of people worldwide, they are a cost-effective marketing tool for companies with limited financial resources.

The sites give businesses a direct connection with the end-user, whether that be a potential customer or a future employee, said Sarah Lacy, an author and a business reporter and columnist in Silicon Valley.

Lacy said the sites have a powerful impact because they are based on human interaction and relationships. People's purchasing decisions frequently aren't based on the cheapest or best choice, but on the product or company to which the buyer feels most connected, she said. So establishing a social relationship could have an advantage.

But businesses must tread carefully, Lacy said. Consumers don't want to be hounded by sales pitches, they want to be engaged in a conversation that is relevant to them.

Amy Boesen, owner of an Omaha interior design business, Decor & You, said she uses LinkedIn to update her contacts on the services she offers. LinkedIn, which has a service center in Omaha, is a networking site for business professionals.

Postings on the site build awareness of Decor & You, which could generate more clients, she said.

Marketing consultant Brian Smith said he uses his personal Facebook page to help promote events that he plans, and sometimes he uses social networking sites to assist with planning his events. For example, he recently tapped into his LinkedIn connections to find a location and keynote speaker for an event.

Some businesses use social networking sites to monitor customer feedback, Lacy said.

Lacy said she recently posted a bad review of an office supply store in San Francisco after an unpleasant experience there. The store's owner saw the review and contacted her to apologize, she said.

The personal exchange and resolution to the situation would have been a lot less likely without the help of social networking, Lacy said.

Social networking sites are an effective way to conduct focus groups because participants tend to respond more honestly online than in person, said Mary Ann O'Brien, owner of obi creative, a strategic marketing firm.

It's a nonjudgmental way to get input, she said.

Sites such as Twitter allow users to post updates, ask questions and collaborate instantly. These sites can be used to throw out ideas and ask for feedback, O'Brien said.

"It's zero-cost collaboration."

Adam Nielsen, owner of Bi-'stO Design graphic and Web design firm, said he uses Twitter to schedule business meetings and stay updated on his colleagues' work.

"You can easily reach a large group of individuals at once, which saves time and money," Nielsen said. "It's great for keeping up to date with events, or scheduling your own."

Businesses can quickly inform customers about new products, changes in hours or special promotions, he said.

Social networking sites allow users to connect with people beyond their immediate circle, said Boesen, the interior designer. Those contacts may even be as far away as other states and countries, Nielsen added.

LinkedIn won't replace her face-to-face networking efforts, Boesen said, but it does make her in-person meetings more meaningful.

Smith, the marketing consultant, said connecting online has led to valuable business relationships for him. For example, he recently submitted two marketing proposals with partners, including Nielsen, whom he befriended through social networking.


Smith said he was acquainted with Nielsen and another Web designer but hadn't considered collaborating on a project until they started communicating on Twitter and built a rapport.

Social networking allows you to "tap into the people you know to get to the people you want to know," said O'Brien, which makes it a great tool for entrepreneurs just starting out.

"Small businesses are always looking for cheaper way to get a leg up," Lacy said.

Smith said people think the sites are only for teens or college students.

"But they are much more in-depth than that and have a wide appeal. Anyone can use them to improve their business's reach."






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