According to the "Consumer Internet Barometer," 43% of all Internet users in the U.S. used a social networking site during the second quarter of this year. In addition, significant percentages of every age group are utilizing some form of social networking. A recent survey of Chattanooga Area Chamber member-investors found that nearly 90% of the 341 people who responded use social networking at least twice a month and another 7.7% expressed an interest in getting started. About half of the Chamber members indicated that they used social networking on a daily basis. Over 70% indicated usage related to making and maintaining business connections.

This article is designed to provide an overview of the social networking landscape along with some guidelines for thinking through how you might use this exciting new medium to advantage. The following examples are drawn from member-investor comments on the Chamber’s social networking survey. Their responses reflect a range of methods that very different kinds of local companies are using to achieve results from social networking.

How Chamber members
are using social networking
(and you can too)

Reconnecting with Contacts and Maintaining Connections

Merri Mai Williamson, Application Researchers, was able to network from established contacts when she reconnected with a friend from middle-school. "He found me on Facebook through some mutual classmates, who were friends with me," Williamson says. "The next day, he called the office and will soon become our newest international client."

Keith Moreland, Little Gym of Chattanooga, reports that online interaction maintains in-person business relationships. "Many of our staff use Facebook to communicate with our members, adding a personal touch for our customers."

Getting News and Industry Information

Most local news outlets have a substantial Web presence and are already using social networking to connect with a growing audience. Chattanooga Times Free Press newswriters routinely shoot video and record MP3s to be posted to www.timesfreepress.com. At the same time, local television news teams are posting written versions of their stories to their Websites and utilizing a variety of text-based social networking tools.

Mike Costa, NewsChannel 9, who established a blog several years ago, reports that using several online tools in tandem produces powerful results. "We have established cross linkages between our blogs, news stories, and weather reports on NewsChannel9.com and both Facebook and Twitter, and it generates tremendous traffic," he says.

According to Derrall Stalvey, WRCB Channel 3 Eyewitness News, social networking is a two-way street. "WRCB is reaching new viewers via WRCBtv.com, Facebook and multiple Twitter accounts that deliver dedicated streams on topics like breaking news, traffic, weather and sports," Stalvey says. "This approach also helps us generate story ideas and engage viewers like never before."

Tom Griscom of the Times Free Press also sees tremendous value in emerging communications technology but cautions against abandoning proven strategies. "Staying competitive in business means using every means available to build relationships with customers," Griscom says. "That’s why we’ve implemented a comprehensive digital strategy, but we’ve found that these new tools work best when they are integrated with traditional communications channels."

In addition to getting local news, social networking gives you the option of following the day-to-day posts of many industry leaders and other key contacts related to your business. This approach can give you a very immediate and unfiltered perspective on what is happening in the sectors that impact your business the most.

Public Relations

Michael McSunas, an attorney with Chambliss, Bahner and Stophel, reports that his Twitter posts "got me interviews with Advertising Age and other publications." McSunas believes that the key to his success has been using his Twitter account solely for posting business information and keeping his posts focused on advertising law. As a result, McSunas’ followers include journalists and bloggers who report advertising-oriented stories, and he frequently receives calls requesting quotes and comments.

Robin Derryberry, Derryberry PR, recommends that business-oriented social networking should make the most of people’s time. "If you decide to Tweet, there should be a strong call to action or important news to share," she says.

Branding and Image Management

Many companies are integrating social networking into their branding strategy. Tory Johnston, Chattanooga Bakery, reports that the recently launched MoonPie Facebook page already has more than 6,000 fans.

According to Brad Wahl, Krystal, his company uses its own social networking platform along with frequent posts to Twitter, Facebook, YouTube (video posting), Flickr (photo posting) and MySpace to engage thousands of people with the company brand. The strategy is so successful Nation’s Restaurant News recently ranked Krystal No. 5 in their list of top restaurant chains which are using social media.

Danny Fell, NDP, points out that consistency is an essential component of online brand management. "Social networking allows smart brand managers to engage online communities in a way that reinforces the company’s image and brand story," Fell says. "The key is to be sure your social networking efforts reflect the feel and emotion of your brand. Some brands are fun and informal. Others convey credibility and security. Be sure that your social networking efforts consistently communicate your brand platform and enhance it."

Engaging Customers and Generating Sales

Adam Sanders, Aladdin Printing and Copying, has found that social networking is a great way to provide general business information. "We use our Facebook page to keep our customers up-to-date on monthly specials, community events, and company news," he says.

Julia Lowy, Doubletree Hotel Chattanooga, takes a similar approach. "I update our Twitter account daily with information about our in-hotel restaurant menu and special rates," she says.

Stephen Culp, Smart Furniture, has found that social media strategies can also generate a great deal of excitement. "We wanted a high-impact launch for a new chair we are debuting," Culp says. "Our social-networking campaign resulted in roughly 50,000 additional views and more than 1,000 people from across the U.S. submitting stories of why they needed our Cobi Chair."

According to Lindsay Wyatt, Siskin Hospital for Physical Rehabilitation, "Having a presence on social networking sites has supported a steady increase in activity on our website, www.siskinrehab.org. Social networking really works, and it’s very cost-effective."

Special Events and Fundraising

Many social networking sites include tools specifically designed to promote events, support fundraising and engage people in "causes."

According to Josh McManus, CreateHere, "Over our two year history, CreateHere has been able to generate over 25,000 attendees at events big and small using social networking and email without ever mailing a paper invitation."

Peggy Lowe, Bethany Christian Services – Chattanooga, told the dramatic story of how her organization used Twitter to publicize opportunities to adopt 41 special needs children in a Chinese orphanage. "After only a few weeks, we’ve found potential homes for more than 30 of these children," she says.

Girls, Inc. used social networking to raise nearly $800 in a single day, according to Bea Lurie, who says, "The contributions allowed us to provide scholarships for girls to attend Spring Break Camp."

Target Marketing

Kary Jordan Klein, SmartWork, reports tremendous success in targeted efforts to locate excellent candidates for jobs she is working to fill. "I have been able to network to the right candidates for highly specialized jobs in a range of fields including raising capital for oil and gas drilling, hospital administration and EHS management," Klein says. "Social networking allowed us to target our communications to people with very specific skill sets even though they were scattered across the country."

The Social Networking Big Four

Facebook is the titan of social networking sites with a reported 250 million active users representing a broad demographic. It offers a wide range of communications tools and an ever growing list of games and quizzes for encouraging interaction. Companies can create a presence by establishing "Groups," which are online clubs, or "Pages," which are a kind of mini-Website within Facebook. LinkedIn has 46 million users and specializes in business-oriented networking. The site’s atmosphere is very professional. Individuals, companies and groups can create profiles.

LinkedIn offers tools for giving and seeking business recommendations, creating polls and posting questions.

Twitter, which has 14 million users, allows participants to post messages (called Tweets) that must be 140 characters or less. Like other social networking site users, Twitterers must mutually agree to connect, but Twitter is almost entirely focused on posting very brief messages. These messages can spread very rapidly when users begin to "ReTweet" posts they have received by sending them to all of their contacts. Twitter is becoming a mainstay for receiving and disseminating news of all kinds.

MySpace has approximately 70 million users, with demographics that remain largely younger. MySpace is similar to Facebook in offering a variety of interactive tools, as well as several ways for companies to establish a presence within the site.

Developing a Social Networking Strategy

• Start by creating a personal account on the sites where your customers are most active and learn how to use the tools by engaging with personal contacts.

• Find your competition and companies that are similar to yours on social networking sites to research how they are using it.

• Develop guidelines for what you will post on the sites. A good rule of thumb is, "If you don’t want to see it as a headline in the newspaper, don’t post it." If you have employees who will be representing your company, these guidelines will need to be more formal and include information about how to keep your company’s message consistent.

• Define what success should look like for your business and develop a plan for measuring results and managing the time you will dedicate to achieving them. Decide how you can integrate social networking with other parts of your marketing and communications strategies.

• Consider engaging a social networking expert to help you develop a strategy. You can find the expertise you need at www.ChattanoogaChamber.com/directory.asp.