I have to admit that up till now, I failed to see the benefit of Twitter for many small businesses. Twitter is very powerful for spreading news and information incredibly quickly, but could it really increase a businesses bottom line? The New York Times has an article that helps answer many of those questions about Twitter.
For businesses, one of the most valuable things about Twitter is how is connects a business with the consumer. People seem to tweet about the products they use. When you get a large enough group of people tweeting about a particular product it can give valuable feedback to the product's maker. Take for example Dell, which noticed many people complaining on Twitter that the apostrophe and return keys were too close together on the Mini 9 laptop. In the next version of the laptop, the Mini 10, Dell had fixed the issue.
While there might be a lot of Twitter data to be mined for products used across the US, what about the local businesses, that probably aren't able to gather useful data from peoples tweets? The article gave an interesting example of a spa that twitters when there are last minute openings and gives discounts to people who book them. This has allowed to spa to increase it's booked time.
Perhaps I'm slower that most people, but I think I'm finally able to see how twitter really can help small businesses. Again, like with all technology you can't just start using it and expect things to happen. The value in Twitter is in the people who follow your message. Once you get a good audience then you can expect things to happen.