Social Networks Going Corporate

For companies with the foresight, Web 2.0 is enabling the transformation of corporate web sites from stodgy old static brochure-ware sites to more dynamic and multi-dimensional sites. Corporate 2.0 sites are integrating social networks, social networking components, or creating separate social networking companion sites.

Old world companies like Cisco are trying to make a foray into this brave new world of social networking via their purchases of Tribe and Five Across. eBay has created its own social networking site called "Neighborhoods" to build a sense of community with users. Even Bank Of America jumped into the game with a social network for small business owners.

This can be a scary new world for old world companies relinquishing control of their carefully crafted images and opening themselves up to criticism from customers actually providing live feedback for the world to see. However, leveraging the social networking platform is a huge opportunity and if done well can yield trememdous benefits such as:
-realtime feedback from your customers. You definitely know what people think and feel, what works and what doesn't and can use it as an opportunity to improve your products and/or services and to correct any public relations issues.
-opportunity to build brand loyalty as customers will see that you value them, and to respond to their issues or concerns.
-opportunity to enable commerce. If customers are recommending your products/services then that can only serve to drive up sales.
-more content and more fluid, timely, user-generated content. Less expensive content for you to create.