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BusinessWeek: Why Twitter Matters

Businesses such as H&R Block (HRB) and Zappos are now using Twitter to respond to customer queries. Market researchers look to it to scope out minute-by-minute trends. Media groups are focusing on Twitterers as first-to-the-scene reporters. (They were on top of the May 12 China earthquake within minutes.)

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How could tiny Twitter ever become such a titan? It’s not the core technology, which is simple, but instead the community. Twitterers find and follow the people they care about on the service. Late in April, following one of Twitter’s outages, TechCrunch’s Michael Arrington wrote: “I realized that in the last two months a subtle shift occurred: I now need Twitter more than Twitter needs me.” Arrington, who has nearly 17,000 people following his Twitterstream, continued: “It is now an important part of my work and social life, as I carry on bite-sized conversations with thousands of people around the world throughout the day. It’s a huge marketing tool, and information tool. But it is also a social habit that’s hard to kick.”