The term social media might give you the impression that it doesn’t have much to do with business. After all you post your pictures of your last party on Facebook, or you tell people about your latest holiday on Twitter.
Businesses however deal with people, so it is only natural that they go ‘social’ and interact with their customers that way. It’s a more personal approach that makes people feel the company is interested in them.
Even though social media might not drive up the sales directly according to statistical research, they can and do increase awareness and interest in the products and services of a company.
For example, if the latest shooter video game for the Xbox is advertised on Twitter, I might not buy it straight from their web site, but I might buy it from another retailer. However, that Tweet has just contributed to that sale.
That said, even pseudo e-commerce sites such as online auctions can benefit from social media.