A Brief Guide to Social Networking for Business

It’s hard to ignore social networking these days. Most think it’s just for teens and young adults to connect with friends, but businesses are using sites like Facebook to reach out to their consumers – and they are wise in doing so. These efforts are especially effective in reaching the large Generation Y audience, many of whom are now entering the professional workforce. Social networking can also be a great tool for professionals if used correctly.

Companies are now not only advertising on social networks, but also setting up a place for consumers to connect with the company. Victoria’s Secret, Slim Jim, HBO, and Coca-Cola, among countless others, have created Facebook networks that enable fans or users to discuss products or send enhanced messages to friends. Microsoft Dynamics Connect has a Facebook application that allows professionals to connect to a business community while keeping their Facebook friends separate, and also allows users to set up a virtual business card. Last week, Visa launched The Visa Business Network through Facebook. This network allows small business owners to connect with each other, manage aspects of their business, and grow by reaching millions of potential customers. A MediaWeek article states that Visa’s research showed that networking is the key to livelihood for small businesses. The network also gives these business owners access to news, commentary, and tool kits, which can help enhance their business. The network currently has 80,000 small businesses as members.

Twitter is another social media outlet that many companies are utilizing to connect with consumers. A company or individual can use Twitter for micro-blogging or updates and others can follow their “tweets.” Using the search feature, formerly Summize, a representative from a company can find out what consumers are saying about their product, and use the reply feature to help resolve any issues. Twitter is being used by such companies as Zappos.com, whose CEO Tony Hsieh tweets about various company events and has almost 9,000 followers. This is an excellent tactic for Zappos since the company utilizes little-to-no marketing, but lets their high level of customer service speak for them. Examples of others who use Twitter are news networks such as CNN and Barack Obama, who has over 50,000 followers.



For professional individuals, however, social networking can be a double-edged sword. The IBM commercial above wittily displays how social networking is not always as great as it may seem, and is many times just that - social. But when used correctly and with appropriate modesty, sites such as Facebook and LinkedIn can be great tools for business networking as well. MSNBC article “Beware of Social Networking Overload” details benefits and privacy features of different sites and includes the table below, which displays segmentation of several social networks. Author of the article Eve Tahmincioglu explains that being on every networking site out there is just not feasible for any professional, but that Facebook and LinkedIn are two sites that are helpful and almost anyone can manage.


The overarching message here is that social networking sites, when used appropriately, can be great for individuals as well as companies. They are difficult to avoid and will not be going away soon, so accepting their presence and seeing their benefits can prove advantageous for business.

For additional Dos and Don’ts, check out this Business Week Tip Sheet on social networking for executives.