A traditional business model is generally used to describe the core characteristics of a business, including a purpose and products and/or service offerings, strategies, customer relationships, infrastructure, organizational structures and distribution channels. Establishing a business model and determining how to meet a company’s needs can be done with pen and paper, marketing campaigns and assessments, and other research processes.
In the Web 2.0 era, when millions of people are connected to the internet, many businesses are looking to update their business strategies. Instead of relying on focus groups and research surveys to gather customer information and data, or generating expensive advertising campaigns, many companies are turning to the web. In particular, businesses are adopting social networking tools as a means of reaching their customers, searching for potential customers, disseminating product/service information, and collecting data about their users.
Facebook, Twitter, LinkedIn and other social networks has become the popular tools among many businesses. With hundreds of millions of users, a large percentage of whom check their pages on a daily basis, using social network to enhance business makes sense. Social networks are utilized by people in many demographics. It is becoming ubiquitous among social networkers and web users.
Businesses interested in using social networks to support their business model have many options. A business can create a page on Facebook that highlights their products and services, as well as how customers can contact them. This might include basic details, as well as photos and video of products. It is recommended that as many details as possible about the business be provided to make the portal the most informative and usable. Twitter can be used to reach potential customers in a less formal way and reach massive followers by common interests. LinkedIn can be used as a network to connect business individuals and professionals.
Encouraging users to comment and interact with the business is the key to generating further interest in the business. Businesses can update users with news, product updates, general conversational pieces, anwering questions and maintaining customer relationship. More and more people can potentially be informed of what is happening, which can support customers as well as generate new leads. In addition, by making connections with customers, businesses have the opportunity to learn more about their customer base, their characteristics, and what appeals to them.
Using social networks can not only generate new customer leads and enhance current customers’ views of businesses, but it also presents opportunities to make new business connections and establish partner networks. Making connections with other businesses involved in social networking, when company information is posted and accessible to other users, a similar effect seen with customers can occur. When connections like this are made, businesses with similar interests and goals can establish groups, which can help them make even more connections.
The possibilities to connect and communicate using social networking applications are essentially endless. Using social networks can greatly help build awareness about a company, drawing new users in and establishing vast amounts of connections. Once connections have been established, businesses can then begin conversing with users, providing them with info and a chance to learn more about their users. In addition, social networking with can support business’s establishment and develop their business models.