Small firms finally getting the Facebook message

Facebook is the social networking site of choice for small companies

One in 10 small businesses are using social networking sites to connect with customers, according to a customer survey by software firm Sage.

The survey generated more than 4,000 responses, and found that 73 per cent of these businesses use Facebook, 33 per cent use Twitter and 27 per cent use LinkedIn. Other popular social media channels include Bebo, MySpace, YouTube, Plaxo, Ecademy and Qype.

Sage said that it was not surprised that Facebook was the most popular social tool used by businesses, as it has over 250 million active users worldwide and is one of the most trafficked sites on the web.

"This is where your customers are talking, where they're forming their opinions and where they're making their own recommendations to their friends, groups and peers," said the firm in a new guide designed to help customers benefit from social media.

Connecting With Your Customers: a Guide to Social Media (PDF) tells businesses that they can expect benefits from social networking sites, including a deeper understanding of customers and the ability to reach out to target markets.

Companies can be made more accessible and personable through social networks, Sage said, and can use social networks to manage their brands and create dedicated communities as a sounding board for their products and services.

A final benefit Sage gave was that social media can improve a web site's search engine optimisation (SEO).

"As well as providing more creative ways to engage with customers and direct them to your web site, you can improve your SEO simply by linking your active social profiles on highly ranked sites such as Facebook or Twitter to your site, " said the guide.

Sage gives some first steps for organisations wanting to embark on a social strategy, suggesting that the quickest and easiest way to reach out to customers and build a community is to set up a Facebook Fan page.

Facebook Fan pages are used to promote discussions and events and can be customised with features such as Google Maps to encourage 'fans' to interact with the business.

Sage also advises businesses to set up profiles on LinkedIn if their primary customers are businesses rather than consumers. LinkedIn is generally used by companies to upload presentations, connect with key industry contacts and demonstrate their experience.

Finally, Sage urged businesses to set up a Twitter profile. The micro-blogging site can be used by organisations to 'follow' people in their industry and listen to real-time conversations.

"By contributing relevant information to the conversation you can add personality to your company and attract a stronger following," said the guide.

Sage published the guide to further its reputation in the social networking space. The company supplies contact management software called ACT! that keeps all details of a company's customer relationships, phone numbers, emails, conversation notes, meeting activities and social media profiles in one place.