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Business Uses for Twitter

our beautiful site

“Wow. It’s not even 9 a.m. and I got all my required things done for the day. Maybe I’ll go back to bed.“ Rich Brooks, president of Flyte New Media, a Web design and Internet marketing firm in Portland, Maine, “tweeted” that note in mid August. One of his 300 or so “followers” on Twitter, a social networking service, messaged him back, asking what made him so productive. “My secret is Pleasant Morning Buzz coffee from Whole Foods. Damn, now I have to kill you,” Brooks wrote. Later that day, Slaton Carter, a social media coordinator for Whole Foods Market, the natural foods retailer based in Austin, messaged Brooks. His unsolicited missive, chosen as “Tweet of the Day,” had earned him a $25 gift card. “Who says Twittering doesn’t pay?” Brooks jokes. Welcome to microblogging, a new form of Internet communication that has interesting business possibilities. Twitter started as a personal service, where members answered the question “What are you doing?” in 140 characters or less. While many tweets, as the messages are called, broadcast mundane inanities about snacking or napping, increasingly proponents are using Twitter to broadcast news, to promote their companies, and to establish closer relationships with clients and customers. How Twitter works Twitter, as well as other microblogging tools such as Jaiku and Plurk, use the simple message service (SMS) protocol to send updates of up to 140 characters to the public and private groups. Twitter has raised $20 million from venture capitalists and while it doesn’t make money, it has become somewhat of a Web 2.0 phenomenon that many are trying to figure out how to monetize. In July, there were more than 2.2 million registered accounts, about four times the number a year earlier. Though Twitter was not developed as a business tool, its founders started seeing business cases emerging, says Biz Stone, founder. “We’re trying to take note of how businesses are using it, and see if there are more ways we can deliver more value.” Companies like Whole Foods, Jet Blue, H&R Block, and Zappos are experimenting with Twitter. WholeFoods started tweeting in July, an outgrowth of Carter and two other online marketers’ own personal experience with the service. “We started seeing other brands popping up and thought, why don’t we try it for Whole Foods?” he says. Now, more than 3,000 people follow Whole Foods, which tweets about promotions, new items, and even product recalls. It also awards a Tweet of the Day four times a week, and weekly does an in-store gift card giveaway to the first five people to say the correct password at that week’s chosen store. Business uses for Twitter Twitter use is growing rapidly, and online marketers should experiment with it to see how they can better communicate using this new medium. New uses are still being discovered, but for now, experts advise using it to: Distill your message. Microblogging helps marketers to think by forcing them to distill their messages into haiku-like brevity. “Microblogging forces you to be interesting in 140 characters or less,” says Brooks, who is experimenting with Twitter for his business and to advise clients. Share information. Companies can post links to press releases, can advertise promotions, or even send out product recall information. Whole Foods used Twitter to broadcast information about a recent beef recall. While its tweets did not reach all Whole Foods customers by any stretch of the imagination — it only has about 3,000 followers — the practice showed that Whole Foods is connected and quick, at least to those who follow it. Listen to customers. Just as you could go to Summize or Search Twitter to find out the latest news about New Orleans levee breaches during hurricane Gustav, you can enter your company name in those search engines to see what the twitterverse is saying about your company. Whole Foods’ Carter searches daily to see what is being said and even interact with people. If someone is calling Whole Foods “whole paycheck,” for example (a common slam), Carter can engage in conversation with them and see what their concerns are. It’s also wise to see what people are saying about your competitors and industry. Talk back. Twitter is a two-way street. “The savvy Twitter user realizes that the effective communications aren’t just ‘pushing’ content to readers, but they will also dialogue and converse with others by replying to them,” says Jeremiah Owyang, Forrester analyst. Improve customer relations. You can receive and respond to customer queries, says Robin Bloor, of HaveMacWillBlog, a technology analyst with Hurwitz & Associates in Austin. “Doing so provides a complete audit trail of questions and answers.” Track trends. Establish an affinity group and listen in, Bloor recommends. As you can follow anyone (except those who deliberately opt for select privacy), “it’s reasonably easy to set up any kind of group and follow it,” he says. While Bloor originally used Twitter to see what other analysts were saying, it could just as easily be used to follow a product or trend. Drive traffic. Twitter allows you to enter links, which are abbreviated into tinyurl entries if the link is longer than 30 characters. These links can direct traffic to your company blog or web site. Claim your identity. If your business has a brand, it should create an account on Twitter, plus Pownce and Jaiku, says Peter Lim, Forrester analyst.  Some squatters have already created accounts like twitter.com/ipod, but many brand handles are still available. What not to do with Twitter There are also rules of the road to help you avoid alienating your real and potential customers. Here’s what you need to watch out for: Don’t spam. Users who are following thousands but don’t have many followers are likely spammers, using Twitter like a direct mailing list. “That’s definitely the fastest way to turn me off,” Brooks says. They sign up to follow thousands, and rely on twitter etiquette of following those who follow you in order to quickly gain their own followers. Don’t be mundane. Owyang recommends adding value. “I rarely talk about waking up, eating lunch, or starting my car,” he says. Add something to the conversation. Don’t upset your followers. Sending out too many updates and filling up their stream can annoy followers. And even though Twitter is more personal, it’s possible to be too casual with followers, especially when you’re representing your brand. In late August, a Whole Foods Tweet of the day contained the word phrase, “oh my f’ing gawd” and caused a small backlash among some followers. “To your followers, you are the brand,” wrote one tweeter.  Brooks disagreed. “It shows that there are people behind that, rather than lawyers looking at every tweet,” he said. The best online marketing establishes real connections with customers. “People are looking for transparency first and foremost,” Carter says, “and a way to directly connect with real people behind a brand. That’s certainly what we’re doing — engaging with people.”

Business Uses for Twitter

our beautiful site

“Wow. It’s not even 9 a.m. and I got all my required things done for the day. Maybe I’ll go back to bed.“ Rich Brooks, president of Flyte New Media, a Web design and Internet marketing firm in Portland, Maine, “tweeted” that note in mid August. One of his 300 or so “followers” on Twitter, a social networking service, messaged him back, asking what made him so productive. “My secret is Pleasant Morning Buzz coffee from Whole Foods. Damn, now I have to kill you,” Brooks wrote. Later that day, Slaton Carter, a social media coordinator for Whole Foods Market, the natural foods retailer based in Austin, messaged Brooks. His unsolicited missive, chosen as “Tweet of the Day,” had earned him a $25 gift card. “Who says Twittering doesn’t pay?” Brooks jokes. Welcome to microblogging, a new form of Internet communication that has interesting business possibilities. Twitter started as a personal service, where members answered the question “What are you doing?” in 140 characters or less. While many tweets, as the messages are called, broadcast mundane inanities about snacking or napping, increasingly proponents are using Twitter to broadcast news, to promote their companies, and to establish closer relationships with clients and customers. How Twitter works Twitter, as well as other microblogging tools such as Jaiku and Plurk, use the simple message service (SMS) protocol to send updates of up to 140 characters to the public and private groups. Twitter has raised $20 million from venture capitalists and while it doesn’t make money, it has become somewhat of a Web 2.0 phenomenon that many are trying to figure out how to monetize. In July, there were more than 2.2 million registered accounts, about four times the number a year earlier. Though Twitter was not developed as a business tool, its founders started seeing business cases emerging, says Biz Stone, founder. “We’re trying to take note of how businesses are using it, and see if there are more ways we can deliver more value.” Companies like Whole Foods, Jet Blue, H&R Block, and Zappos are experimenting with Twitter. WholeFoods started tweeting in July, an outgrowth of Carter and two other online marketers’ own personal experience with the service. “We started seeing other brands popping up and thought, why don’t we try it for Whole Foods?” he says. Now, more than 3,000 people follow Whole Foods, which tweets about promotions, new items, and even product recalls. It also awards a Tweet of the Day four times a week, and weekly does an in-store gift card giveaway to the first five people to say the correct password at that week’s chosen store. Business uses for Twitter Twitter use is growing rapidly, and online marketers should experiment with it to see how they can better communicate using this new medium. New uses are still being discovered, but for now, experts advise using it to: Distill your message. Microblogging helps marketers to think by forcing them to distill their messages into haiku-like brevity. “Microblogging forces you to be interesting in 140 characters or less,” says Brooks, who is experimenting with Twitter for his business and to advise clients. Share information. Companies can post links to press releases, can advertise promotions, or even send out product recall information. Whole Foods used Twitter to broadcast information about a recent beef recall. While its tweets did not reach all Whole Foods customers by any stretch of the imagination — it only has about 3,000 followers — the practice showed that Whole Foods is connected and quick, at least to those who follow it. Listen to customers. Just as you could go to Summize or Search Twitter to find out the latest news about New Orleans levee breaches during hurricane Gustav, you can enter your company name in those search engines to see what the twitterverse is saying about your company. Whole Foods’ Carter searches daily to see what is being said and even interact with people. If someone is calling Whole Foods “whole paycheck,” for example (a common slam), Carter can engage in conversation with them and see what their concerns are. It’s also wise to see what people are saying about your competitors and industry. Talk back. Twitter is a two-way street. “The savvy Twitter user realizes that the effective communications aren’t just ‘pushing’ content to readers, but they will also dialogue and converse with others by replying to them,” says Jeremiah Owyang, Forrester analyst. Improve customer relations. You can receive and respond to customer queries, says Robin Bloor, of HaveMacWillBlog, a technology analyst with Hurwitz & Associates in Austin. “Doing so provides a complete audit trail of questions and answers.” Track trends. Establish an affinity group and listen in, Bloor recommends. As you can follow anyone (except those who deliberately opt for select privacy), “it’s reasonably easy to set up any kind of group and follow it,” he says. While Bloor originally used Twitter to see what other analysts were saying, it could just as easily be used to follow a product or trend. Drive traffic. Twitter allows you to enter links, which are abbreviated into tinyurl entries if the link is longer than 30 characters. These links can direct traffic to your company blog or web site. Claim your identity. If your business has a brand, it should create an account on Twitter, plus Pownce and Jaiku, says Peter Lim, Forrester analyst.  Some squatters have already created accounts like twitter.com/ipod, but many brand handles are still available. What not to do with Twitter There are also rules of the road to help you avoid alienating your real and potential customers. Here’s what you need to watch out for: Don’t spam. Users who are following thousands but don’t have many followers are likely spammers, using Twitter like a direct mailing list. “That’s definitely the fastest way to turn me off,” Brooks says. They sign up to follow thousands, and rely on twitter etiquette of following those who follow you in order to quickly gain their own followers. Don’t be mundane. Owyang recommends adding value. “I rarely talk about waking up, eating lunch, or starting my car,” he says. Add something to the conversation. Don’t upset your followers. Sending out too many updates and filling up their stream can annoy followers. And even though Twitter is more personal, it’s possible to be too casual with followers, especially when you’re representing your brand. In late August, a Whole Foods Tweet of the day contained the word phrase, “oh my f’ing gawd” and caused a small backlash among some followers. “To your followers, you are the brand,” wrote one tweeter.  Brooks disagreed. “It shows that there are people behind that, rather than lawyers looking at every tweet,” he said. The best online marketing establishes real connections with customers. “People are looking for transparency first and foremost,” Carter says, “and a way to directly connect with real people behind a brand. That’s certainly what we’re doing — engaging with people.”

A Helping Hand With Taxing Matters

Best of the Web Tax pointers are available from several online sites at no charge. Twelve CEOs assess what the advice is really worth Print neatly. That’s the kind of advice that the IRS considers a “dynamite” tax tip, Dave Barry once wrote in his Miami Herald column. “If you ask them a real tax question, such as how you can cheat,” Barry said, “they’re useless.” The IRS won’t tell you how to cheat, but it does attempt to mitigate the tax-filing (if not the tax-paying) ordeal by offering a helping hand, and now it does so online. In partnership with the Small Business Administration, the IRS makes tax information for business owners quickly and easily accessible on a Web site titled Small Business Corner ( www.irs.ustreas.gov/bus_info/sm_bus). The site offers the government’s latest intelligence on such things as its rules for business-expense deductions and what the tax agency considers the best record-keeping systems for small companies. If the IRS is the authoritative source of tax information, is there any reason to look elsewhere on the Net for tax expertise? Several privately owned sites say yes. Each site has its own spin, depending on what group it aims to attract — a general small-business audience or merely start-up entrepreneurs, for example. Like the IRS site, the private offerings are free. They contrast with the tax-prep sites, such as Intuit’s TurboTax or H&R Block’s TaxCut, which enable users to fill out their tax returns online for a fee. To determine which of the tax-advice sites were worthwhile, Inc. asked 12 small-business CEOs to evaluate seven of the most popular ones. Two of the sites belong to Big Five accounting firms: Deloitte & Touche’s Dtonline.com and Ernst & Young’s TaxCast.com. Individual accountants operate others, including TaxMama.com, which began as an online newsletter. Another site that was a newsletter before it evolved into an in-depth source of complex tax matters is TaxProphet.com. It has 40,000 users and registers about 300,000 hits a month, according to tax lawyer Robert L. Sommers, who runs it. Although the sites don’t charge user fees, some make money by selling ads posted alongside the tax advice. Others are marketing tools. For example, Sommers, who’s also a columnist for the San Francisco Examiner, says that TaxProphet.com brings in clients for his law practice — and generates ideas for his column. Sommers claims that even taxpayers who have the assistance of a certified public accountant can benefit from consulting the tax-code nuances laid out in TaxProphet.com. “At tax time, CPAs are working 18-hour days and may not have time to ponder the gray areas, like whether you need a W-4 for the Israeli teacher you employed or if a treaty with Israel makes that unnecessary,” he says. Traffic is heaviest on the sites in the run-up to the April 15 tax-filing deadline, but they post information for all seasons. One tip on TaxMama.com last fall, for instance, suggested that tax-payers consider charging business expenses to a credit card up until December 31, 2000. The charges are deductible on the 2000 return, even if they weren’t paid before year-end. If you’re perplexed by some tax wrinkle or want an update on lawful tax-avoidance schemes, which of the seven sites is your best bet? Here’s what our CEOs had to say. www.bankrate.com What it’s good for: A well-organized, clearly defined primer. “The entire site has a lot of value,” said one CEO. Bankrate.com contains a Calculations section, which is useful for computing gross profit margins and a variety of business ratios. Don’t waste your time if: You want a hard-core, business-oriented site or you’re a lender or you’re doing tax work for a financial institution. What our CEOs had to say: “It will make my favorites list,” commented one reviewer. A second panelist said, “This site is easy to navigate, easy on the eyes, and gives you a good, brief understanding of each topic.” What you ought to know: The site’s owner is Bankrate Inc. (formerly known as Bank Rate Monitor), based in North Palm Beach, Fla., a longtime publisher of financial information. Bankrate.com’s content now appears in the Money section of Usatoday.com. www.dtonline.com What it’s good for: A guide for personal financial planning. It also contains useful tidbits, including a schedule of gift- and estate-tax rates and a rundown of 10 “essential” practices for growing a company. Don’t waste your time if: You need access to tax schedules or links to other sites. What our CEOs had to say: “One visit was all it took” to sour one CEO on the site because he found it lacked forms that he could download. A fellow panelist, however, said the site was “very informative, especially for small businesses.” What you ought to know: Dtonline.com contains a weekly online missive, “Tax News & Views,” a Deloitte & Touche compilation of the latest tax news from Washington. www.irs.ustreas.gov/bus_info/sm_bus What it’s good for: Comprehensive tax information furnished by the IRS and tailored for small businesses, plus links to other useful tax-related sites, such as www.tax.gov (which covers the tax- and wage-reporting basics). Don’t waste your time if: You seek tax loopholes. What our CEOs had to say: “Excellent tax information for small businesses,” one panelist said. It’s great for “getting a handle on tax issues relating to a start-up,” said another. Still, one CEO disliked the site and said he couldn’t find valuable advice there. What you ought to know: The IRS also offers online sites not specifically devoted to small businesses, including www.irs.ustreas.gov, a guide for filing electronic tax returns. www.smbiz.com What it’s good for: News and tax tips are updated daily. It also has a host of useful links to other sites. Don’t waste your time if: You need answers to specific tax questions. What our CEOs had to say: They agreed that the site is valuable mostly as a “link farm,” in the words of one of them. They generally faulted its design as lacking pizzazz. What you ought to know: The genesis of the site is the Small Business Tax Review, a newsletter published since 1980 by the A/N Group, in Melville, N.Y., a provider of tax news and analyses for small businesses. www.taxcast.com What it’s good for: Tax-law summaries and a trove of tax documents mostly suited to accountants and financial planners. Don’t waste your time if: You want a fast, easy-to-understand tour through the tax landscape. One business owner said the site, though rich in complex information, was “too sterile” and “does not keep my interest.” What our CEOs had to say: They applauded its many links and other resources, but craved a more inviting format. “It’s very vanilla,” said one panelist. What you ought to know: Affiliated sites furnish many kinds of Ernst & Young tax help. One example is www.ey.com, a site well known for financial counseling for individuals and families. www.taxmama.com What it’s good for: A joyful and occasionally informative romp through the tax world for inexperienced businesspeople. This site’s “personal commentary and humor make it unintimidating,” said one CEO. Another recommended it only for tax filers with rudimentary questions. Don’t waste your time if: You’re looking for a highly professional format or need more than a casual presentation of everyday tax issues. What our CEOs had to say: This is a site “more geared toward the consumer than toward businesses,” said one CEO. Another echoed the assessment, saying, “It just doesn’t have the kind of information I need” as a business owner. However, a third CEO said that this is a “great site with good information.” What you ought to know: The site’s founder, Eva Rosenberg, holds the Enrolled Agent credential, which the U.S. Treasury Department issues to qualified accountants. Rosenberg claims to respond to every E-mail query she receives. www.taxprophet.com What it’s good for: Basic facts. The site’s a good do-it-yourself reference for those who are just starting a business and can’t afford an accountant. “If you know what you’re looking for,” one CEO said, “you can do full-text searches of a large tax-law database,” which will give you a heap of hits to sift through. You just need to have the time to do it. Don’t waste your time if: You want quick answers to your questions. What our CEOs had to say: It’s better to leave to an accountant the kind of time-consuming tax research that’s available on the site. “I don’t have the time to just browse,” one CEO said, and “it’s cheaper for me to call my accountant for a quick answer.” But for those with the stomach for truly in-depth tax research or an education in tax law, the site may be useful, according to another reviewer. What you ought to know: In the spirit of fulfilling Robert Sommers’s mission of educating its users about everything to do with taxes, the site posts advisories about tax scams on an online bulletin board. The bottom line For overall tax advice that’s accessible and relevant to small businesses, our CEOs favored the IRS site, Dtonline .com, and Bankrate.com. The reviewers singled out Bankrate.com for its supe- rior ease of navigation, and they appreciated TaxProphet.com’s extensive tax- research database. They lauded Smbiz.com for links to other tax-related sites. The panelists scorned TaxMama.com in many respects yet couldn’t help liking it for its sheer fun. Sara Trainor Callard is a freelance writer based in Quincy, Mass. The savvy entrepreneur’s guide to online tax advice Comments Would CEOs go back? What are the site’s pluses? CEOs’ quick take www.bankrate.com Yes. “The news section, which seems to be updated often.” “This is a worthwhile site to visit.” www.dtonline.com Maybe. “Clear and concise language.” “Very informative.” www.irs.ustreas.gov/ bus_info/sm_bus Maybe. “Quick and easy to explore.” “Would recommend for tax issues relating to start-ups and small businesses.” www.smbiz.com Probably not. “The links.” “Could use a redesign.” www.taxcast.com No. “A comprehensive listing of links.” “It was loaded with information but was a little overwhelming for the tax novice.” www.taxmama.com No. “Good basic information that’s well categorized.” The site can give you the basics for “general tax queries.” www.taxprophet.com Maybe. “Searches of a large tax-law database.” For extensive tax research without a CPA’s services, this is a “good reference.” Grades Ease of navigation Variety User- friendliness Technical reliability Average grade www.bankrate.com A- A- B B B+ www.dtonline.com B B B- A B www.irs.ustreas.gov/ bus_info/sm_bus A- B B A- B+ www.smbiz.com B- B C- A- B- www.taxcast.com B- C B B B- www.taxmama.com C C B C C www.taxprophet.com B- C B- A B- Our panelists John Auger, cofounder, Operations Associates Gary Barras, CEO, Integral Systems Henry L. Foster, CEO, Call Henry Dr. Jim Goodnight, CEO, SAS Kevin J. Goslin, CEO and cofounder, Construction Technology Group Tim Handley, CEO, Advantage Credit International Duncan Harrison, CEO, Alaskan Automotive Distributing Dean Hunt, president, Certified Associates James Matuszewski, CEO, FeelGood for Life George G. Mueller, CEO, Color Kinetics Victor Tsao, CEO, Linksys Ross Youngs, CEO, Univenture Please e-mail your comments to editors@inc.com.