Is Twitter Really Right for You?

As with any other communications technology, it’s important to weigh the pros and cons of Twitter. The more familiar I become with Twitter through my own tweets and other articles and posts online, the more I realize that there is a downside to the world’s latest and seemingly greatest social media tool.

Corporate Twitter Lesson #3: Recognize Twitter’s Limitations

It is not mandatory to have a Twitter account. While it seems like everyone in the world is busy tweeting, the reality is that some people don’t even know what Twitter is. And even those who do aren’t likely to have actually posted a tweet before. The demographics for Twitter completely surprised me – the average user is 31 years old, according to Pew Research. Do a little research about who is actually on Twitter before taking the time to create your tweeting strategy.

Check out a recent video from myRaganTV.com – Twitter: Who’s Using It? – for some anecdotal evidence from the streets of Chicago.

New Tweeters tend to be window shoppers. According to research conducted by Nielsen Online, more than 60 percent of people who sign up to use Twitter do not return to using it the following month. “In other words, Twitter currently has just a 40 percent retention rate, up from just 30 percent in previous months – indicating an ‘I don’t get it factor’ among new users that is reminiscent of the similarly-over hyped Second Life from a few years ago,” wrote Mike Shields in a recent article published on MediaWeek.com.

David Martin, vice president of primary research for Nielsen Online believes that this low retention rate could be a long-term problem for Twitter, citing growth patterns for other social media sensations like Facebook and MySpace that had double Twitter’s retention rate at a similar growth stage. “A high retention rate doesn’t guarantee a massive audience, but it is a prerequisite,” Martin wrote. “There simply aren’t enough new users to make up for defecting ones after a certain point.” Ask yourself if Twitter is worth your company’s time and energy if it hasn’t proven that it can retain its users.

Watch out for Twitter hijackers. When I was searching through Twitter for corporations to follow, I found a multitude of listings under some of the most popular and successful businesses in the United States. For instance, when I searched for Best Buy, I was presented with 39 results. I chose to follow the one that seemed most plausible, but I still have no idea if this account is really “owned” by Best Buy, or if any of the other 38 tweeters are connected to the corporation. If you really wanted to, it would be easy to impersonate a celebrity or brand. If your company is serious about using Twitter (or just want to be sure that no one but you is writing on behalf of your company), you may want to think about registering for all of the accounts that could even be loosely connected to your brand.

As you weigh the cons listed above, please know that this information isn’t meant to drive you away from using Twitter as a corporate social media tool. Rather, the tips given above are meant to give you something to think about. After all, it’s more important than ever for companies to use the communication technology that’s available, but only if the tools are really right for your business goals, strategy and mission.