How businesses can use Twitter for a competitive advantage

From wsuwiki

1 About Twitter
2 History of Twitter
3 How to Use Twitter
4 How Businesses are Using Twitter
5 Links
6 References

About Twitter

It is amazing that the code for one of America's most popular sites was created in just weeks. Twitter started out as a web service that allowed users to update followers via status update. The topic of these updates range from mood, location, opinions, news updates, and much more. The quality that set Twitter apart from other social networking sites is the fact that it utilized SMS technology. This lead Twitter to be one of the first Websites of Web 2.0 to use multiple platforms (the web and also cell phones). Jack Dorsey, one of the co-founders, put into words the purpose of twitter when he said “I want to have a dispatch service that connects us on our phones using text.” Since it has been created, Twitter has become a marketing tool for businesses, a popularity tool for politicians, and publicity tool for celebrities, as well as continuing to be a social networking tool for the average, information age Joe.

History of Twitter

Twitter was created by Evan Williams, Biz Stone, and Jack Dorsey. Jack Dorsey came up with the original idea after a few days of brainstorming. He was inspired by his desire to create a way to get the word out about a "happening new club he was at" This lead him to the idea of creating a web service that uses SMS to tell small groups what you are doing.

Twitter, which was founded a mere three years ago owes some of its success to its popularity among celebrities. Twitter accounts were an easy way for celebrities to stay more in touch with their fan base, and fan could learn more about the daily lives of their daily celebrities. One of the first times Twitter hit the mainstream news was when Britney Spears' Twitter account was hacked, which resulted in her username, @Brittney Spears, posting obscene tweets. Even the politic crowd has hopped on board. Our President, Barack Obama was one of the first politicians to use twitter to reach out to his fan base. Twitter had enough of an impact on his political campaign that it lead John McCain, his competitor, to create a Twitter account as well

How to Use Twitter

The use of Twitter is straightforward, relatively simple, and surprisingly limited. Any person who desire and account signs up for free at Twitter.com. Unlike other social networking sites, Twitter does not allow for an in depth profile, posting of pictures, or installation of the plethora of useless-but-entertaining applications that other social networking sites have.

A user then needs to start developing her contact base. She can invite followers, and also choose who she wants to follow. She will receive updates from every person she wants to follow, and every person who follow her will receive her updates.

The updates are called "tweets." Evan Williams came up with this name due to the short spurt burst of information in each "tweet," much like a bird that tweets a small tune. Also, the large dependence on SMS means that ever "tweet" is received as a text message, and the sound cell phones make when receiving a text message reminded of a bird "tweeting"

Before you become an avid "Tweeter," it is important that you learn some basic "Tweetiquette"

1.) Keep your messages brief - anyone receiving them via cell phone will only receive the first 140 words

2.) Don't get too personal 3.) Stay away from obscenities 4.) Don't overload your followers with too many tweets

How Businesses are Using Twitter

Marketing Companies globally are recognizing the power Twitter is offering. It provides a way to instantly connect with limitless numbers of customers, fans, or anyone interested in the product instantly. Twitter allows a company CEO to tweet one minute about the intimate details of his life and the next about the new release of a product.

As a business, it is important to pick the best marketing strategy for your company. There are two basic options: direct and indirect. Direct marketing involves a company having one Twitter account that serves as a representation for the whole company. This is a useful way to connect to people who are already interested in the company's product. It is a prime example of viral marketing. The hope of a company using the direct method is the when they tweet something, their followers will "retweet" the message, and then some of their followers' followers will retweet the message, and so on. This is a free, and incredibly powerful way to spread the word about a company or product

The second way that companies utilize Twitter as a marketing tool is indirectly. Instead of have the company tweet, they encourage employers to tweet. This is useful because each employer's followers will be alerted. In some cases, indirect marketing creates a larger contact base that direct marketing. Indirect marketing is an excellent way for companies to boost their reputation. If this is hard for you to picture, just think of the reverse effect of viral marketing. When a yahoo employee twittered throughout the layoffs at the company, it created a very negative image for Yahoo.

Communication

Twitter creates an excellent portal for intra-company communication. One example of this is event planning. One tweet can alert hundreds of people instantly of an impromptu meeting. It also creates an non-intrusive way to remind people of upcoming events.

Secondly, Twitter allows for a better way for companies to interact with their customers. Some companies choose to just follow people on Twitter instead of actively tweeting. By following people they can discover the latest trends and gain a better understanding for what their customers desire.

Companies can also use Twitter more interactively with customers. They can ask their customers questions directly. Not only is the information extremely useful, it also demonstrates to customers that the company is making an effort to meet their personal needs.

The capabilities of Twitter are powerful, but it is important that a company has a plan before the jump on the "Twitter Train." If they are planning on allowing employees to use twitter, rules and regulations need to be created, since the company will be represented through the customers. As in any business method, it is important for a company to do adequate research before adding a new dynamic to the business.