Social Networking: big opportunity for small businesses

The social networking phenomenon is growing dramatically in the recent years. An upsurge in the use of social networking websites is no longer limited to personal web pages alone. It has also become a digital marketing tool for businesses here and around the globe. Although, there are still companies who are adamant in engaging in social networking, not realizing the benefits one can reap from this technology, especially small businesses which do not have a lot of resources to fund a sophisticated advertising and marketing of their products or services.

Social networking is an easy and inexpensive way to create your presence in the online world, informing people that your business exists. It's a good opportunity to establish relationships, business contacts, making new friends with similar interests and finding old friends as well. It can also attract prospective customers and retain loyal ones. Facebook and Twitter are examples of networking sites that small businesses can use for free. These sites may be used to offer "deals of the day" and other promotions, company events and product information. The best thing about these sites is that it's the fastest way of getting the word out (call it word of mouth). If one customer is happy about your product, he will tell his friends about it, and chances are these friends of his will spread the news to several other friends in their group, thus providing positive endorsement. Also, these sites provide for interactive communication between your company and your customers. You just have to be genuinely responsive to what they say. Allowing customers to leave feedback or suggestions will make them feel that they are a part of the business, fostering better company-customer relationship. Feedback and suggestions in turn may give insights to improve your products and services.

This technology may sound too simple but engaging in social networking is not an effortless task. One must be willing to devote a lot of time nurturing his or her business community. Some companies even hire people just to maintain their company's social networking visibility. When Dell announced that they earned $3 million from using Twitter, it didn't happen overnight. It took Dell eighteen months to earn their first million and another six months to earn their last million dollar. For those small companies who are just starting out, experts say that spending two hours a day is enough and at least three months to see the result of their hard work. So what are you waiting for? Make friends in Facebook or join Twitter now.

By: Jenette Chiong