INTRODUCTION

From its 140-character limit to unprecedented access to

celebrities, Twitter can do things that other mediums simply
can’t. Its unique audience increased nearly 1,400% from
February 2008 to 2009, and 5% of U.S. online consumers
are Twitter FOLLOWERS, FOLLOWING at least one brand
or company. Although Twitter’s active user base remains
significantly smaller than other social networking sites like
Facebook, approximately 11.5 million U.S. consumers
use Twitter on a daily basis. And these daily Twitter
users are the most passionate and influential online
consumers. They play an undeniable role in the online
ecosystem—and specifically—YOUR bottom line.

Inside this report, you’ll learn:

• The five x-factors that make Twitter one-of-a-kind

• Why Twitter users choose to engage with brands via

this channel

• How to interact with your customers on Twitter

• The strengths and weaknesses of Twitter—according

to your customers

From influence and accessibility to interaction and versatility,

Twitter is unlike any other social networking community. And
when all five of Twitter’s x-factors combine, the result is an Twitter users are the
online environment that rivals an exclusive members-only
club—while only a small percentage of people are likely
to show up on a regular basis, their influence on the most influential online
larger online culture is undeniable, even enviable. The
conversations that take place on Twitter fuel discussions
across all areas of the internet—from blogs and forums to consumers, and their
product reviews and coupon sites—which influence both
Twitter and non-Twitter users alike.

Twitter talks, and it’s Tweeting about your brand. By revealing

influence spreads across
all areas of the internet.
Twitter’s x-factors, we’ll help you understand this unique
communication channel, so you can develop an integrated
marketing strategy that will work across all online channels.

! © 2010 ExactTarget
 “The conversations that take place on Twitter fuel discussions across
all areas of the internet–from blogs and forums to product reviews and
coupon sites–which influence both Twitter and non-Twitter users alike.”
© 2010 ExactTarget "
 X-FACTOR
Twitter’s ability to influence a brand’s reputation—and
its bottom line—extends far beyond the Twitter website.
Because its flexible API allows third parties to easily
build applications on top of its infrastructure, it makes
sense that only a fraction of Tweets are read directly on
Twitter.com. But in addition to third-party applications
such as CoTweet™—that provide a different interface
into the Twitter community—this API streams Tweets
into other online forums like blogs and corporate sites.
And this is just the beginning of Twitter’s power to
influence a brand across the entire internet. Twitter
has the power to impact your image, reputation,
and business (for better or for worse) across all
interactive channels.
Here are some reasons why Twitter’s influence is undeniable:
ACTIVE TWITTER USERS WANT TO
INFLUENCE OTHERS.
Many Twitter users are drawn to this channel because
they see an opportunity to influence others. Overall,
only 14% say they want to get as many FOLLOWERS
as possible. And this statistic increases to 28% for daily
Twitter users. While passive or occasional Twitter
users aren’t typically counting their number of
FOLLOWERS, daily Twitter consumers are counting,
and they’re continually looking for ways to increase
their level of influence.
Of those daily Twitter users who do want to accumulate
a large Twitter audience, 73% say they’re very selective
about who they choose to FOLLOW—more than any
other group of consumers. They’re more likely to limit
the number of people they choose to follow in order
to keep their Twitter stream from becoming cluttered.
# © 2010 ExactTarget
1 INFLUENCE
This is compared to only 58% of occasional Twitter
users who say they’re selective about whom they
choose to FOLLOW.
FOLLOWERS REPRESENT THE MOST
INFLUENTIAL ONLINE CONSUMERS, AND
THEIR TWITTER USE IS ON THE RISE.
When it comes to identifying a group of consumers who are
most likely to impact your brand’s online reputation, get to
know your Twitter FOLLOWERS. These consumers are three
times more likely than the average consumer to publish to a
blog at least once per month (53% compared to 18%), and the
content might mention your brand. From submitting product
reviews and commenting on news stories to participating
in discussion forums and maintaining personal websites,
FOLLOWERS represent the most influential online consumer.
And while many passive Twitter users are decreasing their
use of this channel, the highly-influential daily Twitter users
(a.k.a. Megaphones—download The Social Profile for more
information) continue to increase their use. These consumers
blog, comment, write online articles, and post to wikis more
often than any other online consumer.
TWITTER’S REACH GOES BEYOND TWITTER.
Believe it or not, Twitter’s reach is approximately double its
active user base. In total, 23% of online consumers read
Tweets at least monthly. And while 12% of online consumers
have created a profile in order to participate on Twitter,
another 11% say they read other people’s Tweets even
though they haven’t created a Twitter account of their own.
Whether Tweets are read directly on Twitter.com, through
search results on Google, or on a Tweet stream through a
third-party site, the voices of Twitter participants will be heard
across all online channels.
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As its rates of user attrition indicate,
Twitter as a communication channel OVER THE PAST SIX MONTHS, ARE YOU
is not for everyone. Interestingly, USING TWITTER MORE OFTEN, ABOUT THE
however, the very traits that tend SAME, OR LESS OFTEN?
to keep some consumers
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this channel to organize and express
information for the benefit of all.

In other words, it’s not just FOLLOWERS

who are listening to Twitter. Search
engines listen as well. And the more this
“While many passive Twitter users are decreasing their
becomes understood in every discipline use of this channel, highly-influential online consumers
and interest, the more Twitter will see its
ranks fill with the right types of users— continue to increase their use. These consumers blog,
influencers who drive the value of the
real-time web.
comment, write online articles, and post to wikis more
often than any other online consumer.”

© 2010 ExactTarget $
 X-FACTOR 2 BREVITY
When communicating via Twitter, short and sweet is the only option, since messages cannot exceed
140 characters. And according to Twitter users, this character limit has its advantages. When asked,
“What’s the best thing about Twitter,” most consumers agree that it facilitates quick and concise
communication. Just as texting is often short and limited, Twitter also forces users—marketers and
consumers alike—to immediately get to the point. To summarize in 140 characters or less, brevity is
the key to mastering Twitter.

Despite the character limits, the content of any given Twitter message is the most important element.
Unlike other social media sites, Twitter lacks add-ons, such as games or photos albums, reducing user
distraction. So regardless of their primary objective—from catching up on celebrity happenings, reading
about event reviews, or looking for their favorite brand’s product information—users easily remain
focused. As a result, consumers are less worried about losing unproductive hours on Twitter, as they
often are when using popular sites like Facebook.

Consumers celebrate Twitter for its conciseness, and they approach this channel with real-time
expectations. They want to know what’s going on, right now. And these expectations provide unique
opportunities for marketers. If you’re looking for creative ways to engage your customers on
Twitter, try real-time giveaways and contests. Many brands use these methods to engage with their
customers, and consumers enjoy the entertaining aspect of these messages, especially if they’re already
looking for deals and promotions on Twitter.

“The best thing about Twitter is that it’s quicker

than email. I can take care of what I need to and
immediately be done and logged off.”
–Kevin, 33, St. Louis, MO

M © 2010 ExactTarget
“Anything that’s fast-paced makes sense on Twitter.” –Hannah, 27, New Orleans, LA

“Twitter is perfect when you want short and sweet.” –Nathan, 19, Birmingham, AL
© 2010 ExactTarget K
 X-FACTOR 3 ACCESSIBILITY
The Twitter community allows unprecedented access to people’s ACCESS TO BREAKING NEWS AND CURRENT EVENTS
everyday lives, from celebrities and politicians to news anchors
From the ‘Miracle on the Hudson’ and the 2009 Iran elections
and professional athletes. And unlike ever before, people can
to the 2010 World Cup and the final episode of Lost, Twitter has
communicate with these fellow Twitter users, across all
provided front-row access to breaking news, current events,
socioeconomic, geographic, and social boundaries. The open
and pop culture. As users Tweet about what’s happening in
connections made possible by this channel allow any member
the world, others respond—regardless of their location. And
of the Twitter community to communicate with any other user—
the ability for consumers to participate with others in a real-
regardless of who they might be.
time forum about these events has turned once-skeptic Twitter
ACCESS TO CELEBRITIES users into active, daily users.

Celebrities have always been in the Twitter spotlight, drawing
thousands of FOLLOWERS. From the highly-publicized “race
to 1,000,000 FOLLOWERS” between Ashton Kutcher and CNN
to LeBron James’ accrual of more than 150,000 FOLLOWERS
within the first seven hours of his presence on Twitter,
consumers are interested in connecting with their favorite
celebrities via this medium.
But these consumers aren’t FOLLOWING celebrities simply to
show support. They want to interact and get to know the real
personalities behind the celebrity. For example, FOLLOWERS of
NBA superstar Shaquille O’Neal (@THE_REAL_SHAQ) know that
if they ask him a question on Twitter, there’s a good chance he’ll
respond directly. Similarly, comedian Daniel Tosh (@danieltosh),
host of Comedy Central’s Tosh.0, responds directly to hundreds
of FOLLOWERS during broadcasts. There’s no other forum—
online or offline—where ordinary citizens have access to the
world’s most famous celebrities. Where else can you access a
celebrity as famous as Shaq, without waiting in line for hours or
encountering bodyguards and publicists?
ACCESS TO CORPORATE REPRESENTATIVES
We asked study participants whether they would rather FOLLOW
their favorite brands through a branded corporate account or
via an individual representing the brand. Overwhelmingly,
consumers prefer branded accounts over individual
employee accounts. Why? Consumers simply believe that
branded accounts are more reliable sources of information since
the individuals behind them are acting in their professional roles
on behalf of the company. However, consumers still appreciate
knowing who’s behind the branded account. For example,
@ford identifies the people who write its corporate Tweets
by using a contributor tag, such as “^SM” for Scott Monty, the
head of social media at Ford Motor Company.
The only clear exception to this rule is when the individual
account belongs to a high-ranking executive or notable
personality within the company. Because consumers feel that
these individuals can easily implement change, they appreciate
the opportunity to interact with them directly.

@ © 2010 ExactTarget
“There’s no other forum—online or
offline—where ordinary citizens have
access to the world’s most
famous celebrities.”

© 2010 ExactTarget N
 X-FACTOR
In many ways, interaction goes hand-in-hand with
accessibility. But unless you’re a celebrity, most Twitter
users view one another as equals—including brands. And
consumers interpret a brand’s presence on Twitter as
that company’s commitment to interact with them. As a
result, they expect brands to be available for real-time
communications and timely responses.
WHY CONSUMERS SEEK BRAND
INTERACTIONS ON TWITTER
20% of consumers indicate that they’ve started FOLLOWING
a brand in order to interact with that company. And while this
percentage is low in relation to other motivations cited for
FOLLOWING brands on Twitter (see page 13), it’s important
to consider that all nine of the more common motivations
we identified involve consumers seeking information from a
company. Nevertheless, consumers are much more likely to
FOLLOW brands on Twitter in order to interact than they
are to become email SUBSCRIBERS or Facebook FANS.
Young consumers are more likely to FOLLOW a brand on Twitter
so they can offer feedback and suggestions. Additionally, while
the ability to interact with brands has motivated 29% of men
to FOLLOW a company, only 13% of women have chosen to
FOLLOW a brand for this reason. And the ability to interact
with brands is particularly important for consumers whose
primary motivation for online interactions is game-related.
These ‘Gamers’ (see The Social Profile, SUBSCRIBERS,
FANS, & FOLLOWERS Report #3) view Twitter as both a
source of information for upcoming game releases and a way
to connect with others about existing games.
?L © 2010 ExactTarget
4 INTERACTION
WHAT CONSUMERS WANT WHEN
INTERACTING WITH BRANDS ON TWITTER
No two consumers are alike, meaning that each individual
Twitter user harbors their own motivations for interacting online
with brands. However, common themes for why consumers
choose to interact with brands on Twitter emerged throughout
the course of our study. Reasons included:
• To obtain new, authentic perspectives on companies
and to find out what they really stand for.
• To receive insider information about upcoming
products and services. Many consumers who
FOLLOW representatives of a brand—and not the
brand’s corporate Twitter account—hope that important
information might be leaked.
• To get to know the personalities behind a company.
For example, if a B2B company is deciding whether
or not to purchase from a supplier, Twitter is useful in
helping them get a behind-the-scenes look at who runs
the company.
• To receive freebies, samples, and discounts, which
are sometimes offered to consumers in exchange for
their input.
• To see how a company responds when its brand
is publically criticized. Both individuals with Twitter
accounts and those without often keep tabs on
companies to see if they’d want to support that brand.
CUSTOMER SERVICE AND TWITTER:
Contrary to early speculation that social media would emerge as a strong
customer support channel, most consumers who participated in our focus
groups preferred to keep customer service issues out of the public domain—
considering it tacky, rude, and selfish when these issues are publically aired.
Less than 1% of Twitter users say they would first contact a brand about its
product or service problems via Twitter, and only 5% would use Twitter as a
secondary means of communication when reporting an issue.
Instead, consumers view Twitter as an escalation point when other means
of customer service communication are not working. As one research
participant shared, “If I don’t get the support I need through phone or email,
I use Facebook and Twitter to voice my complaint, since a ton of people will
see it. The company can’t ignore me then!” As this comment reveals, by the
time customer service issues make it to social media, it’s often an indication
of prior failures.
So how should marketers balance Twitter communications with customer
service issues? While the vast majority of consumers don’t initially turn to
Twitter for customer support, some do! And their impact on your brand’s
reputation can be powerful, especially if initial attempts to resolve their
customer service issues have been unsatisfactory. Thinking of Twitter as a
second or third tier of customer support will help you meet their needs.
How do you manage
your customer
service interactions
on Twitter?
Ensure Twitter customer service representatives have full
1 corporate support. To be successful, these representatives need to
be empowered to rectify issues quickly. This is especially important because
other consumers are watching and forming opinions about your brand based
on how you respond to customer service issues.
Partner Twitter customer service with traditional customer
2 support. Because not all consumers want to resolve their
customer service issues in the same way, you need solid strategies for
both Twitter and traditional customer support. Poor frontline customer
service has the potential to create public relations crises for your brand
on Twitter, so make sure that representatives understand the increasing
significance of ‘first-call resolution’—even if it’s at the expense of
increased call length. Additionally, make sure you have a strategy for
how to quickly resolve customer service issues once they reach your
main Twitter stream.
Focus on diagnosing the root cause of customer dissatisfaction.
3 Always try to determine if early attempts to resolve an issue failed when
consumers express their dissatisfaction with your brand online. Diagnosing
the root cause can protect your brand’s online reputation and when handled
well, can strengthen ties with traditional customer support teams.
© 2010 ExactTarget ??
 X-FACTOR 5 VERSATILITY
When trying to identify why consumers choose to engage with brands on Twitter, we asked study participants to tell us
which brands they felt did the best job of communicating via this channel. And unlike similar questions posed for email
and Facebook, no clear patterns emerged. Additionally, when asked why they choose to FOLLOW particular brands, 31%
of consumers say they want to stay informed about a company’s activities, and 30% of consumers say they FOLLOW
brands to receive updates on future products. But when you compare these statistics to other channels, Facebook is
actually preferred by more consumers when it comes to staying informed about a brand’s activities (34%), and more
people use email to receive updates about future products (44%).

So what’s the real reason consumers turn to Twitter when it comes to engaging with brands?

In short, consumers turn to Twitter for interaction, whereas only 13% of SUBSCRIBERS and 13% of FANS turn to email
and Facebook to interact with brands. But that doesn’t mean that interaction is the key to successfully communicating
on Twitter. It simply means that there’s no universal reason why consumers choose to engage with marketers like
you on Twitter. As a result, Twitter usage is versatile and ever-changing, depending on your target audience and their
personal motivations.

Some studies have attempted to rank the most influential brands on Twitter, but because consumers’ motivations
are so diverse, there’s truly no “right way” for brands to engage with their customers on Twitter. And while this
versatility in how consumers use Twitter can add additional challenges for YOU, the marketer, it also provides opportunities
for creativity. One thing is abundantly clear: consumers are looking for deeper insight into the personality of your
brand, and they believe Twitter is the perfect place to get to know you.

HERE’S A TIP: When developing your Twitter marketing strategy, it’s helpful to review case studies, so you can use other
companies’ successes as a guide. And remember—Twitter allows you the creative flexibility to truly embrace your brand’s
personality, more than any other communication channel. Your customers want—and expect—to get to know you beyond
the corporate messaging, and they’ll be looking for your personality to shine on Twitter. Additionally, it’s also helpful to
reveal the people behind your brand’s personality, allowing company employees to transparently represent the brand with
a personal identification.

One thing is abundantly clear: consumers are looking for

deeper insight into the personality of your brand, and they
believe Twitter is the perfect place to get to know you.
?! © 2010 ExactTarget
 “Twitter is what you make of it. If you FOLLOW interesting people,
it’s interesting. If you don’t, it’s boring.” –Daniel, 25, Tacoma, WA

WHAT HAS MOTIVATED YOU TO FOLLOW A COMPANY, BRAND, OR ASSOCIATION ON TWITTER?

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© 2010 ExactTarget ?"

 TWITTER’S ROLE IN THE MARKETING ECOSYSTEM
'F)%
&'()% It’s true that Twitter is not for everyone. In our study,
OY>FB we found that consumers’ opinions about Twitter
are extremely polarized. Some consumers hate it.
Even more don’t understand it. And in many ways, the
rapid growth of Twitter in 2009 can be misleading. For
example, many average consumers were drawn to join
Twitter as a result of massive media coverage, only to
quickly become overwhelmed by the chaos of world-
wide, real-time communication. These consumers
didn’t understand the appeal of adding yet another
social network to their list of social media activities.
For them, Facebook and MySpace seemed adequate.
But that doesn’t diminish Twitter’s importance in
today’s online marketing landscape. In fact, the
individuals who do use Twitter are the most
influential online consumers that exist—a key
audience for most modern marketers. And it’s
important to note that Twitter users don’t isolate
their activities to Twitter. These daily Twitter users are
voracious online consumers and contributors:
• 72% publish blog posts at least once a month
• 70% comment on others’ blog posts
• 61% write at least one product review a month
• 61% comment on news sites
• 56% write articles for third-party sites
• 53% post videos online
• 50% make contributions to wiki sites
• 48% share deals found through coupon forums
?# © 2010 ExactTarget
The collaboration and sharing that happens on Twitter
affects all other areas of the internet, providing fodder
for blog posts, product reviews, and living room
conversations alike. And even your consumers who
aren’t active on Twitter are likely to be influenced by
the conversations happening there. To put it simply,
what happens on Twitter doesn’t stay on Twitter.
The key to successfully integrating Twitter into your
overall marketing strategy? Don’t approach this
channel as a way to maintain direct relationships with
the majority of your customers. Instead, commit to
serving your customers who do use Twitter on a
daily basis. They control and influence the content
that others are reading about your brand—which can
directly impact your bottom line. And if you use Twitter
appropriately with this important audience, you can add
depth and character to your customer relationships.
“The collaboration and
sharing that happens on
Twitter affects all other areas
of the internet, providing
fodder for blog posts, product
reviews, and living room
conversations alike.”
 ?$
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© 2010 ExactTarget
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?M © 2010 ExactTarget
ACCORDING TO YOUR CONSUMERS:
THE STRENGTHS & WEAKNESSES OF TWITTER
STRENGTHS
Real-Time Communications/
1 Information: Twitter is the fastest
mass communication channel regularly
accessed by consumers, and they
appreciate the ability to get the information
they’re looking for in a quick and timely
manner.
Access: Twitter provides consumers
2 with unprecedented access to
anyone else who’s a member of the Twitter
community. Want to talk to the CMO of
Best Buy? Twitter is the app for that.
Community: Some consumers like
3 Overload: Twitter takes a time commitment. And time is precious.
the ability to collaborate and learn
while other consumers appreciate the ability
to find the best deals available online. Being
a part of the Twitter community makes both
of these more possible.
WEAKNESSES
Repetition: Infrequent Twitter users are baffled by the repetitive
1 nature of some Tweets. They often don’t understand why the same
messages are Tweeted continually by certain brands.
Quick Tip: Set up a support account (e.g. @cotweet_support) for customer
service interactions, keeping your main brand stream (@cotweet) free from
unnecessary clutter.
Confusion and Chaos: The biggest reason why consumers don’t use
2
Twitter? They just don’t understand it. Real-time, frequent messages
can often seem chaotic, making Twitter easier to avoid altogether.
Quick Tip: Find out how your customers really feel about Twitter by simply
asking them. When you understand how they prefer to connect with you,
you can honor their individual preferences.
3 As one participant shared, “What’s the point? I waste enough of
my time on social networks. Why should I add another one to the mix?”
Quick Tip: If your consumers don’t prefer to communicate via Twitter,
don’t force them to. This channel is simply not for everyone.
© 2010 ExactTarget ?K
 CUSTOMER SUCCESS HOW WHOLE FOODS DOES TWITTER
Whole Foods Market is the world’s largest retailer of natural and organic foods, with stores throughout North
America and the United Kingdom. With a commitment to customer service since its founding in 1980, Whole
Foods Market understands the importance of engaging in online conversations with its customers. In June
2008, Whole Foods Market hired Winnie Hsia as the organization’s first Social Media Specialist, to improve
the way the company interacts with customers through online channels, including Twitter.

When Hsia was hired, Whole Foods Market customers were already engaging in social media. “We knew our
customers were already there, and we were ready to join the conversation on Twitter,” Hsia explains. But what began as a modest
following of 1,000 followers a month quickly grew to more than 10,000 new followers a day at one point. Hsia soon found it challenging
to manage the more than 50+ ongoing customer conversations that were
occurring on a daily basis. It became difficult to keep track of questions
answered versus those not answered, and that’s when she knew it was time
for a new solution.

After exploring a variety of tools to help manage its Twitter conversations, Whole
Foods Market chose CoTweet. “Compared to other Twitter management
tools, CoTweet™ makes it easiest to manage conversations, and
can be quickly rolled out to Whole Foods Market stores, so our local
marketers feel empowered to engage their customers and communities
in conversation,” says Hsia.

Through features like multiple accounts/users, conversation threading,

and messaging archives, CoTweet helps Whole Foods Market streamline
work flow and manage social media communications from customers.
“Before CoTweet, my TweetDeck was always full, and I had no mechanism
for effectively answering our customers’ questions,” says Hsia. “CoTweet
restored the sanity of my job. At the end of day, our goal is to answer
customer questions and build relationships, and CoTweet gives us the
tools we need to manage those conversations.”

Ready to manage YOUR social media conversations?

Visit www.cotweet.com to sign-up for a demo of CoTweet’s Enterprise Edition.

?@ © 2010 ExactTarget
WAIT—
THERE’S
MORE!
In the 5th installment of
ExactTarget’s SUBSCRIBERS,
FANS, & FOLLOWERS
research series, we’ll explore
Facebook’s x-factors, revealing
the unique characteristics of
this communication channel.
Most modern consumers love
Facebook, but not all agree that
marketers should be welcome
participants. We’ll examine what
motivates consumers to engage
with brands on Facebook, what
companies communicate well
via this channel, and specifically,
what consumers appreciate about
these special companies. To
automatically sign up to receive
each report as it’s released,
visit www.exacttarget.com/sff/
download and select the opt-in
button on the download form.

© 2010 ExactTarget ?N
 Twitter talks,
and it’s Tweeting
about your brand.

Isn’t it time you joined the conversation?

CoTweet™ from ExactTarget has developed the industry’s first comprehensive solution for managing social
media marketing on Twitter, making it easy for you to integrate, track, and manage social strategies as part
of your larger marketing initiatives. With more than two-thirds of Fortune 100 companies having already
established a Twitter presence, top brands like McDonald’s, PepsiCo, Ford, Microsoft, Sprint, and Whole
Foods Market rely on CoTweet to efficiently and effectively manage their social media conversations.
Ready to easily connect with your customers on Twitter?
Sign up for the free public beta at www.cotweet.com/signup today.

GGGU )X/49O/:.-9U 42C GGGU J2OG--9U 42C

This document may not be copied without the prior written consent of ExactTarget. © 2010 ExactTarget.