A traditional business model is generally used to describe and assess core characteristics of a business, including a purpose and product/service offerings, strategies, infrastructure, organizational structures, distribution channels, and customer relationships. 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 and networking on the Web, 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 core customers, searching for new customers, disseminating product/service information, and collecting data about their users.
Facebook has become a popular social networking tool among businesses. With hundreds of millions of users, a large percentage of whom check their pages on a daily basis, using Facebook to enhance business makes sense. Facebook is utilized by people in many demographics. While once thought to be popular strictly among teens and the college crowd, more than half are actually outside of college and that number is rapidly increasing. Users check in on their desktop computers and via mobile devices. It is a social networking application that is becoming ubiquitous among social networkers and Web users.
Businesses interested in using Facebook to support their business model have many options. A business can create a Facebook page 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.
Once an informative, engaging page has been created, it is necessary to start engaging conversations with users. Encouraging users to comment and interact with the business is the key to generating further interest in the page. Businesses can update users with news, product updates, and general conversational pieces. Updates may show up on users’, or fans’, news feeds, which can be viewed by their friends. This can create a ripple effect with the information, where it starts with the business and extends further and further into a broader network. 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 Facebook 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 Facebook 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, Facebook provides businesses with opportunities to enhance their brand images and target their audiences. Social networking with Facebook can support business’s establish and develop their business models.
