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 Consider Turning Customers
 Into "Fans"

At first glance, some business owners and executives may not see the professional value of Facebook. After all, they may have only heard about the Web site from their high school and college age children.

But Facebook isn't just for kids anymore. Recent research shows that the age of the 250 million users on the social networking site has been steadily increasing. For example, people age 35 to 54 made up 16.6 percent of visitors in January of 2009, compared to 3.4 percent of users in October of 2007.

 Social Networkers Are Getting Older

Facebook User

    Oct. 2007    June 2008    Jan. 2009

Age

 Percentage Percentage Percentage
0-17 19.1% 16.5% 13.5%
18-24 61.8% 53.8% 40.8%
25-34 14.2% 21.1% 26.7%
35-54 3.4% 7.0% 16.6%
55+ 0.8% 1.2% 2.3%
Unknown 0.7% 0.3% 0.1%

--Source: iStrategy Labs

Facebook for Business: Tips and Tools

  • You can place photos, logos and videos on Facebook pages. Fans can write messages on your "wall."
     
     
     
     
     
     
    Check back regularly so you can respond to comments.
  • Don't be afraid of criticism. Social media sites are a good place to show customers that mistakes are made, but your company handles them professionally and fairly.
  • Your business can list events it is hosting. For example, you can post a seminar, sale or get-together.
  • Each time you post comments, promotions, photos, events or videos, your fans see them on their Facebook "News Feeds."
  • There is a "Discussion" option that can be used to elicit feedback from customers about issues that are important to them. For example, on the Levi's page, one discussion started with a customer lamenting that he couldn't find jeans made in the U.S.A. Others commented they want the same product and would be willing to pay extra for American-made Levi's.
  • Facebook reports demographic information about an organization's fans, including their genders, ages, and locations.
  • Certain features for Facebook personal accounts are not available to businesses. For example, a business can't use the site's instant messaging. The site has many controls and options to protect privacy and create transparency. For example, a user is required to use a real name, rather than an anonymous alias.
  • Be careful about your business reputation. Posting personal photos or allowing inappropriate language is not a good idea. (Fortunately, anything on your page can be deleted.) Establish a social media policy as described below.
  • Link to your Web site. On your Facebook page, list your Web address and phone number so visitors can get more information. Similarly, link to your Facebook page on your Web site.

Establish a Social Media Policy for Employees

Address the information you do (and don't) want posted about your organization and urge employees to exercise good judgment. This includes ensuring trade secrets and proprietary information are protected and copyrights are not violated.

There is also the issue of productivity. At the same time that many employers are signing up for Facebook, others are using software to ban or limit its use. Make sure social networking doesn't become a time-wasting distraction. Explain the purpose is to build stronger relationships with customers, colleagues and associates.

And once people get on Facebook, they stay there longer than they do elsewhere on the Internet. Average Web users spent more time on Facebook (4.5 hours during June) than they did on Google, Yahoo, eBay and other popular sites, according to a new study from the Nielson Company.

These are some of the reasons why businesses should be taking a look at Facebook, if they don't already have an account set up. Instead of inviting a circle of "friends" to join them, businesses, brands and public figures can put together a group of "fans" on a Facebook Page.

Other reasons to consider getting on the Facebook bandwagon:

To protect your trademark/ business name. Facebook recently started offering users the ability to have their own URLs (for example, www.facebook.com/mcdonalds). Securing a URL ensures that your trademark business name is not "taken" by another user. (If it is, Facebook has steps to get it back.)

In the first few weeks, millions of users staked claims to Facebook names they wanted. So you may want to act immediately to get yours. This is especially important if there are others with similar business names.

However, you can't just set up an account and immediately get a Facebook URL. You have to have 100 fans on your business page first.

It doesn't cost anything to create an account. The initial set up of a basic Facebook page is free. On it, you can post all sorts of information, described in the right-hand box.

Many large companies buy additional advertising on Facebook, as well as hire marketing consultants and advertising agencies to formulate Facebook strategies. Some of them pay extra for targeted interactive applications. But smaller businesses pay nothing to set up and manage their pages themselves. Consider asking a couple of young members of your staff to handle the task of being the "admin." Chances are, they are on Facebook already. With some guidance, they should be able to easily get your business onboard and leverage what is available for free.

Having a presence on social media sites moves your business up in search engine rankings. Facebook pages are indexed by Google and other search engines. So they can cause customers and prospects who are searching online to land on your page and ultimately be directed to your Web site.

Once your business is on Facebook, you want to keep your pages fresh and interesting to keep people coming back. Update regularly and try to add value for your fans. Here are some examples of how different organizations are leveraging the power of Facebook to build relationships and promote their products, services and causes:

Starbucks, which has more than 3 million fans, gives away coupons and posts polls ("what is your favorite Starbucks ice cream?"). It hosted a "free pastry with a drink purchase" event. And recently, the company posted photos from the CEO's trip to Rwanda to meet with coffee farmers.

The no-calorie sweetener Splenda used Facebook to give out samples of a prototype product. The company shipped out more than 15,000 samples of Splenda Mist and then used the site to receive feedback from the recipients before the product went to market.

The RAND Corporation, a not-for-profit research institution, posts links to donate and buy its books. In addition, it reprints opinion pieces that its executives and scientists publish in various newspapers.

NanoBiotech, LLC, a pharmaceutical company, posts its press releases, job openings and photos of its research.

The Ritz-Carlton posts articles and photos about the amenities available at its 73 hotels and resorts worldwide. For example, at its Kapalua location, there is an organic garden where chefs pick herbs, vegetables and fruits to use in select menu items. Other Facebook posts describe outdoor fitness classes at the Ritz-Carlton Key Biscayne and a kids' sailing camp at the St. Thomas hotel.

Target has a "College 09" section on its Facebook page, complete with a checklist of what "you need to succeed." Visitors can buy all the items (dorm refrigerator, computer printer, coffee maker, etc.) at Target with a click of the mouse.

Mekong Restaurant in Richmond, Virginia, posts specials, photos of dishes on its menus, and videos of events hosted there.

Dunkin' Donuts features a "Facebook Fan of the Week" on its home page. The restaurant chooses one each week from photos submitted by customers eating and drinking its products.

American Eagle Outfitters announces specials and gives fans discount codes on its Facebook page. Recently, the retailer posted "behind the scene" pictures of models in a new advertising campaign.

These are just some of the Facebook strategies that businesses are employing. Depending on the unique nature of your business, there are many ways to interact with fans. If you decide to get onboard, the key is to interact with your customer base in an accessible, interesting way. And be patient. Building an online community takes time. But in today's economy, it may be worth spending the time and effort to develop a presence that can help promote your business for free.

(For information on how businesses are using the social media site Twitter, click here to read our article, "Pass it On.")

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