Different Kinds of Social Media and their Strategic Use I - Facebook

As mentioned in my introductory post, social media and successful business strategy are inseparable. Social media is redefining the way businesses think about customer experiences they provide. By monitoring social media channels, business can manage its customer loyalty and brand perception. How? To answer that question, I will look into top three social media channels and their purpose. Let's begin with the biggest social network out there - Facebook.com

What is it?
With over 1 billion active monthly users, 50 million pages, and 10 million apps, Facebook is without a doubt the biggest social network in the market. It allows you to create a page for an individual or for a business, and you can build your network by adding friends.

How is it used?
Once you set up your business page, your facebook wall can be used as a community facilitator. The foremost benefit of a facebook page is that it's a simple method to introduce your business. Anyone with a Facebook account (virtually everyone) can access your business page to find locations, business hours, team members, products and services. Additionally, following are the top 5 facebook functions used by business to create a buzz:

1. Company Announcements/Newsletters - Facebook page allows you to make company announcements as wall posts and would notify those who have "liked" your page. This is a great way to publish press release or positive company changes without constantly writing emails to your customers. By writing frequent wall posts, you will keep your company in the minds of your customers. If, your company prefers to send emails or e-newsletters, Facebook allows you to add a software like MailChimp that allows your fans to enter their email address when they are visiting your business page.
2. Check-in Deals - Following another popular social media channel, Foursquare, Facebook recently began allowing people to check-in on their mobile app. Often times when customers check-in at a location, they will receive a certain deal offered by the business. Companies (mostly franchised) would utilize this function to motivate customers, and by checking-in, it leads to word-of-mouth marketing.
3. Coordinate Special Events - Again, Facebook allows a simple way of creating an event for your company and sending out invites. You can create a company wide event just for the employees, or you can create a public event and invite practically everyone on the Social Network. A custom tab on your facebook page will allow you to provide all the information of the event, including a map to the event location.
4. Contests - Running a contest is the simplest way to increase visibility and grow your fan number. Majority of the time, companies run contests to win a prize through their Facebook page. I've seen many restaurants and stores that will give you a code on your receipt that you can enter on the business' facebook once you "like" the page. If you want something more complex, Facebook also allows you to create an app for the contest.
5. Product/Service Testing - Your facebook page can be a great way to introduce a new product or service and obtain feedback. By posting a product/service catalogue on your page, customers can freely learn about the product/service, and give feedback by leaving comments. Furthermore, you can create a whole new page for the product/service to obtain "likes" and increase popularity.

Facebook.com is an obvious choice of social media channel to use for all businesses. It is already a huge network and it's simple to use. Unlike traditional marketing, Facebook allows your business to provide everything that would be on your company website, newsletters, and chain emails to be all on a single page. Increasing visibility and growing your customer base is as simple as clicking a "like" button. Through the network, one person's "like" will be announced to all of his or her friends, which performs as a word-of-mouth marketing. All company activities on Facebook is sent as a notification to your "fans." By simply maintaining and grooming your business page, Facebook notifications acts as a gentle reminder to keep your company on the minds of your customers.