By Patricia Seybold

Why is Social Media important to customers?

People trust peer reviews and recommendations. They can ask for and receive recommendations quickly using their social networks. People like to be able to find an expert quickly in whatever field or topic. Social networks make it easy to find someone who is knowledgeable about the things you need to know about. People like to share and strut their stuff. They like to contribute tidbits and experiences that others may find valuable.

Why is Social Media important to your company?

Not having a social media presence is akin to not having a Web site or a fax number. But, most importantly, a strong social media presence—one in which customers talk about your brands and your products—will increase your search ranking and lower your cost of customer acquisition.

What are your next steps?

Ensure that you have clued-in Web execs responsible for social media outreach and support. Create and monitor a Facebook Fan page for your company. Set up and monitor Twitter accounts. Plan twitter "micro-campaigns"; to engage customers and create buzz around your brands. Make it easy for customers to contribute and to share.