Why companies watch your every Facebook & Twitter move.

The recent banning and fining of a number sports stars for tweeting rude comments about their lack of selection has once again brought attention on modern networking sites back into focus and a reappraisal of how they’re used by commercial organisations.

Once upon a time companies could afford to be rude. I might grumble to a few friends and walk to the next shop on the high street but there was little else that I could do. These days I’ll still grumble to my friends, but now I do it online, using social media websites like Facebook and Twitter.

Today one witty Tweet, one clever blog post, one devastating video - forwarded to hundreds of friends at the click of a mouse - can snowball and kill a product or damage a company's share price. It's a dramatic shift in consumer power. But what if companies could harness this power and turn it to their advantage?

Social media is quickly becoming a customer relationship management system, as companies have for the first time access to people's minds in near real-time. It may be all the buzz, but I suspect that in reality only a few firms understand it and know how to use it, it's been of peripheral interest for most. Few realise that using social media has become much more than customer service and reputation management.

Most importantly, it can act as an early warning system when something goes wrong. But for many companies social media tools are poorly integrated into the corporate structure, if your system tells you that your customers are unhappy about a product or service, it can be critical that the tool immediately alerts the team in charge of it.

It also makes business sense. Good use of social media can reduce complaints and costly calls to a service centre. But there are dangers that the obsession with social networking can make management lose focus. If a company needed a random tweet to alert them to a problem, surely something was wrong in the first place.

Even in normal times social media marketing has its quirks. I was told that the single most important rule is to try to sound genuine, "don't push... and don't pretend you are hip". Just as readers can quickly tell whether a CEO's blog is really written by the boss or the PR team, Twitter and Facebook don't lend themselves to spreading the corporate message.

As companies are getting to grips with social media, the very business model of customer relationships looks set to change. Consumers are spending their attention on social media but firms don't know how to repay them properly. There's no manual for that yet and there probably never will be.

After all, what works today, might not work tomorrow.