Can Twitter help your business?

Research by O2 suggests that more than 6,000 small firms a day are joining the social networking website Twitter, believing it can offer effective low-cost marketing and networking. Kate Horstead finds out whether Twitter can live up to the hype

Unless you never read the news, you cannot fail to have heard of Twitter. A social networking phenomenon to rank with Facebook, its use is spiralling - and so is its profile.

Similar to texting but with far greater reach, Twitter enables users to send and receive punchy 140-character messages (known as a 'Tweets') from anyone who has signed up to 'follow' them. It has become a popular way for friends to keep in touch and for celebrities to communicate with fans.

But businesses, too, are exploring Twitter's potential as a marketing and networking tool. Imagine being able to send instant news about a fresh offer to hundreds of potential customers? Or pick up business contacts or customer feedback within minutes because of a simple tweet?

"Many people are still finding their way with Twitter, but you should plan what you want to get from it and how," says Nikki Pilkington, founder of marketing agency Nikkipilkington.com. "You can only decide if Twitter works for you by trying it."

Who can use it?

Although Twitter's potential uses may seem obvious at first glance, less clear-cut is the type of business that can realistically use it from day-to-day. It is arguably more useful to office-based firms or those with a website to drive traffic to. But Pilkington believes that businesses from any sector can benefit from the niche marketing it offers  -and bear in mind that mobile technology enables people to send and receive tweets from their phones.

"A restaurant might use it to give its 'followers' exclusive offers or an estate agent could post details of properties and attract a local following by tweeting news about the area," she points out.

Travel agents are posting last-minute availabilities and gardening firms are offering nuggets of advice along with links to their websites. There is even potential for unlikely users such as plumbers or car mechanics to pick up business from Twitter as people use it to ask for recommendations for local services.

Getting started

If you feel Twitter is worth experimenting with, it is easy to register with the site and start picking up followers. Many of your existing contacts may already be on Twitter, so start by sending them an email asking them to follow you. Then start tweeting.

"Use keywords in your tweets so potential customers looking for an offer like yours can find you through searches on Twitter," advises Pilkington. "The key thing is to interact and post updates. You can work out quickly whether you're doing the right thing by seeing how many people start and stop following you."

According to research group Nielsen, the biggest age group on Twitter is 35 to 49, so it could be ideal for reaching middle-aged target groups. However, Pilkington reasons there are some customers that you won't find. "You're unlikely to reach elderly customers on Twitter yet, as it's fairly new," she says.

Using Twitter in your business

As with all online social networking tools, it pays to have a policy about Twitter's use in your business. You may have authorised staff to use it, but consider imposing time limits on them, because it can be very distracting - a handful of tweets a day should be enough.

You will also need to be careful about the image your employees present of your firm. "If your employees represent you, give them a list of guidelines - it will reflect badly if they Tweet 'I've got a hangover'," warns Pilkington. "Setting up separate profiles for personal and business use can also be a good idea."